Archives for July 2011

Foreclosure and Unemployment

Recent news reports have indicated that it will take approximately 24 months for the New York City and Long Island area to recover from the current high levels of unemployment. It is estimated that the metropolitan New York are will not return to it’s pre – recession levels of employment until April of 2013. Metropolitan New York is doing better at recovering from the recession then other parts of the country. It is estimated that the majority of the country will take 3 years to reduce the unemployment rates to pre – recession levels.

New York Real Estate

Although property values have not recovered from the real estate crisis, in the State of New York, real estate experts are proclaiming that we are doing better than California, Arizona and the majority of the sun belt. Although the pundits are claiming things will get better, I don’t see this happening. Foreclosure rates in the Metropolitan New York area continue to climb. Banks are refusing to provide feasible mortgage modifications to homeowners. Unemployment rates are remaining steady or climbing. The business areas in local communities have been devastated. There are empty stores everywhere.

2012 is an election year. President Obama is going to have to take further action to simulate our economy and revitalize our housing markets if he wants to get re – elected.

Litigating Foreclosures In New York State Courts and In Federal Courts

There are two different routes to dealing with homes that are in foreclosure. The cases can be defended in the New York State Courts. Defective mortgages, defective foreclosure lawsuits, predatory lending and other real estate related defenses can be submitted in a response to the service of the summons and complaint in a foreclosure proceeding. Mortgage modification applications can also be submitted to the financial institutions.

Filing Bankruptcy to Stop Foreclosure

The second route is filing foreclosure related bankruptcies. Both Chapter 7 and Chapter 13 bankruptcies will stop foreclosures from moving forward. The filing of bankruptcies will also eliminate unsecured debts, stop debt collection, harassment and in some cases, eliminate second mortgage liens. Call us for a consultation and we will discuss why filing bankruptcy may be in your interest, the types of bankruptcy available to you and how to re-establish credit after filing bankruptcy.

Bankruptcy Filings Are On The Rise

Bankruptcy filings on Long Island are on the rise. In March of 2011, more bankruptcies were filed on Long Island than any other time in the past two years.

Change In Bankruptcy Exemptions

There was a significant change in the bankruptcy exemptions in New York in January, 2011. Individuals now filing a Chapter 7 bankruptcy can exempt $150,000.00 in equity in their home. A couple filing a Chapter 7 bankruptcy can exempt $300,000.00 in equity in their home. This means a couple filing a Chapter 7 bankruptcy can discharge their debt and keep their home even if they have $300,000.00 in equity in their home. This is the
main reason why Chapter 7 bankruptcy filings have increased.

Let’s look at an example involving the bankruptcy exemptions. Let’s suppose you
have a home worth $500,000.00 and you and your wife have a mortgage of $250,000.00 on it. You also have $50,000.00 in credit card debt, you owe a doctor $10,000.00 and have a personal loan that you didn’t pay in the amount of $10,000.00. You can file a joint Chapter 7 bankruptcy with your wife, eliminate the $70,000.00 in personal debt, and keep your home. This is provided you are up to date on your mortgage at the time you file your bankruptcy and you continue making your mortgage payments on a timely basis. Filing a Chapter 7 bankruptcy if you’re in financial difficulty may be a good idea!

Long Island and Queens County Bankruptcy Lawyers

If you have questions about filing bankruptcy, contact the bankruptcy lawyers at the Law Offices of Schlissel DeCorpo. We represent individuals filing Chapter 7 and Chapter 13 bankruptcies. We will discuss with you prior to filing bankruptcy, why bankruptcy may be the best route to resolve your financial problems and also explain the various types of bankruptcies available to you. At the end of the bankruptcy we’ll help you re-establish your credit. It is important to know that under Chapter 13 bankruptcies the lien created by second mortgages can sometimes be eliminated. Bankruptcies can help you stop foreclosure proceedings from moving forward and eliminate debt collection hassles. Call us for a free consultation.

United States Government Sues Deutsche Bank Over Improper Loan Practices

In May of 2011 the Justice Department filed a lawsuit against Deutsche Bank. They asked for hundreds of millions of dollars in damages from Deutsche Bank. The lawsuit alleges that Deutsche Bank improperly charged it’s customers for bad loans issued by the bank. The lawsuit was filed in the United States District Court in New York.

U.S. attorney Preet Bharara stated upon filing the lawsuit, Deutsche Bank “ignored every type of red flag and breached every duty of due diligence before underwriting thousands of federally insured mortgages.” “While the homes the defendant’s issued loans for may have been build on solid ground, the defendant’s lending practices were built on quick sand. Ultimately prudence was trumped by profit, and good faith took a back seat to good fees.”

A representative from Deutsche Bank stated the charges against them were “unreasonable and unfair”.  The governments complaint stated that more than forty thousand loans were issued by Deutsche Bank during a ten year period from 1999 to 2009. These loans have a face value of more than five billion dollars.  The government alleges that as a result of Deutsche Banks loan program, there was numerous defaulted loans which have cost the United States taxpayers more than one billion dollars.

New York Foreclosure Defense and Bankruptcy Attorneys

There are a variety of ways to fight foreclosures. They can be litigated in the State Court where the lawsuit is brought. Defenses such as predatory lending, defective foreclosure lawsuits, defective mortgages, violation of federal laws related to foreclosure and other real estate defenses can be raised in the state courts. Applications can also be made for mortgage modifications to entice the financial institution to back off on the foreclosure proceedings.

In addition to the state based actions, families whose homes are in foreclosure can file foreclosure related bankruptcies. The bankruptcies filed are either a Chapter 7 or Chapter 13 bankruptcy. These are two types of bankruptcy that apply to consumers. Filing the bankruptcy stops foreclosures from moving forward, ends debt collection and sometimes eliminates second mortgages. At the end of the bankruptcy the individuals filing can re-establish their credit.

Should you have questions as to the best route for you to take to save your home, call us, we’ll provide you with a free consultation and discuss your foreclosure defense options. You are on the Elliot Schlissel foreclosure blog and we thank you for visiting with us.

Improving Your Chances of Obtaining a Mortgage

For a period of time in America, mortgages were being given out by financial providers without the appropriate due diligence requirements being met. This caused a mortgage crisis in the United States that we are still dealing with. There are currently new rules in place regarding obtaining mortgages. The rules are strict and the requirements are more difficult to meet.

Credit Scores

It takes a much higher credit score today to obtain a mortgage than it did five years ago. Prior to obtaining a mortgage, it is important that you investigate your credit score. If your credit score is not high enough to obtain a mortgage, procedures can be undertaken to increase your credit score.

Paying Down Debt

If you have significant debt from credit cards, car loans or other types of debt, it can have a negative impact on your credit score. By paying down your debt you improve your income to debt ratio, which in turn will raise your credit score.

Don’t Make Large Purchases

If you’re planning on buying a home, do not apply for additional credit cards and do not make large purchases on your existing credit cards prior to buying your home. Lenders will look into these activities and it will have a negative impact on their underwriting process.

Put More Money Down As a Down Payment

Lenders today are looking for 20% down payment before giving mortgage loans to prospective homeowners. If you could put down more than the 20%, it will increase your chance of getting a mortgage loan.

The mortgage process will require that you produce tax records, pay stubs, bank statements, credit reports and other financial documents. Maintain all of these documents in an organized fashion. This will ease the burden of filling out the mortgage loan applications.

Beware of the Twenty Eight Percent Standard

Banks today are following guidelines that total housing expenses should not exceed 28% of your monthly gross income. If you exceed the standard it will be difficult for you to obtain a mortgage.

Foreclosure Defense

Foreclosure is a nasty term. Foreclosure notices are depressing. There’s a tendency when your financial troubles are out of control to try to avoid these problems. This is a wrong way of dealing with this problem. Come to us, we can help you! We litigate all aspects of foreclosure proceedings including, but not limited to, defective foreclosure lawsuits, defective mortgages, predatory lending issues, bad faith, and other real estate legal issues. We attend foreclosure court conferences for the clients we represent. We also assist our clients in the preparation of mortgage modification applications, as well as deal with mortgage modification programs that are unresponsive to our clients’ needs.

In certain situations, foreclosure related bankruptcies can be utilized to stop foreclosures from moving forward. Upon filing either a Chapter 7 or a Chapter 13 bankruptcy, the bankruptcy court issues an automatic stay that stops the foreclosure lawsuit from moving forward. It should be noted that bankruptcy proceedings are brought in the United States Bankruptcy Court, while foreclosure proceedings are brought in New York State Courts.

For our clients who file bankruptcy, we can sometimes eliminate second mortgages. We also can assist our clients in re-establishing their credit after filing bankruptcy. Should you have questions as to what type of bankruptcy would be appropriate for you or whether there is other alternatives related to foreclosure defense, feel free to contact us. At your initial free consultation, we will discuss all of your foreclosure options. We look forward to seeing you again on our foreclosure blog.

Illegal Foreclosures on Homes Owned By Military Personnel

Banks, mortgage companies and other financial institutions have been illegally foreclosing on homes owned by men and women actively serving in the military  of our country. Men and women in the Armed Services of the United States are supposed to be protected by the Servicemembers Civil Relief Act. This is a law designed to protect members of the Armed Services who have financial difficulties. This federal statute prevents foreclosure on properties owned by men and women on active duty in the military of the United States. Foreclosures in violation of the Servicemembers Civil Relief Act are punished by the justice department’s civil division.

Fifty Illegal Foreclosures of Property Owned By Members of the Military

In a recent report the General Accountability Office of the United States government has disclosed that they have found more than fifty wrongful foreclosures of homes owned by members of the military. These foreclosures have been undertaken by 14 of the largest banks in the United States. Al Franken, the democratic senator from Minnesota, stated “the idea of wrongfully forcing service members families from their homes while their loved ones are risking their lives to protect our country, is not only unconscionable, it’s illegal.”

In February of 2011, JP Morgan Chase disclosed it had improperly foreclosed on 18 homes owned by military members. The bank has recently either rescinded the foreclosure sales or reached a financial settlement with a dozen of these military borrowers. JP Morgan Chase’s chairman, Jamie Dimon, referred to these foreclosures as “a painful apparition.” Recently JP Morgan Chase has found another 30 situations where they may have illegally foreclosed on service members homes.

Protect Your Country and Lose Your Home

Men and women who are risking their lives in the armed services of the United States should be protected from having their loved ones thrown out of their homes and the home sold in foreclosure!

Lawyers Helping Victims of Foreclosure

We help families whose homes are being foreclosed. We assist our clients with mortgage modifications and dealing with mortgage modification programs that fail to meet their needs. We litigate violations of federal laws regarding foreclosure,  predatory lending issues, defective foreclosure lawsuits, real estate related issues and defective mortgages. We attend foreclosure court conferences for our clients.

We file foreclosure related bankruptcies, such as Chapter 7 and Chapter 13 bankruptcies for our clients. At our initial consultation we discuss the types of bankruptcy that are available and why the situation may require the filing of a bankruptcy petition. At the end of the bankruptcy case we explain to our clients how to re-establish their credit. It should be noted that bankruptcies stop foreclosures and also stop debt collection activity. Feel free to call us for a consultation. Thank you for visiting our foreclosure defense blog.

How to Pick a Real Estate Agent

Buying a home may be the largest purchase for a family during their lifetime. Picking the correct real estate agent can eliminate many problems involved in the process.

Real Estate Agents Work on a Commission Basis

Real estate agents are not paid a salary. They work on a commission basis. They receive a commission only if they’re successful in selling the house.

Try to Obtain a Recommendation

The best way to find a competent and honest real estate agent is to ask your friends, family members, attorneys, accountants or other individuals who you respect for recommendations. You should practice due diligence and interview two or three real estate agents before deciding on one to represent you.

Real Estate Agents Represent the Sellers

A real estate agent is the agent of the seller. The real estate agent does not represent the buyer. They may appear to be your friend but be careful, what a real estate agent is primarily interested in is earning a living by selling homes.

Sellers Beware

Real estate agents, upon meeting with the prospective seller, want to obtain the listing. The agent will receive a commission even if he or she does not show your home. One of the things an agent may say to you in their first meeting is “I believe I have a buyer for your house”. This is a sales pitch. They may have a buyer who wants a house in your town, but they have no idea they want your house in particular. Another sales technique involves the agent telling you that they have obtained a great offer. However, this offer may be far below what you seek to obtain from the sale of your house. Remember, if a perspective purchaser makes you an offer and it is below what you want, you can make them a counter offer and meet them halfway or three quarters of the way to the price you want.

Buyers and Sellers

Buyers and sellers have different interests. A seller wants to get as much for his or her home as possible. The buyer wants to pay as little as possible. Both of them may be dealing with the same real estate broker. This may create a conflict of interest.

Real Estate Brokers Recommending Lawyers

The real estate broker you go to may recommend a lawyer to handle the real estate transaction. The broker may say this lawyer is affiliated with our office and he or she will give you a good deal. The issue you must look into is whether that lawyer really has your best interest at heart or is the real estate broker’s best interest his or her main concern. Real estate brokers refer lawyers to their prospective clients who they know will protect them with regard to their commissions. In most situations, you are better off having an independent lawyer that you obtained from another source.

Metropolitan New York Foreclosure Defense Lawyers

The New York City and Long Island foreclosure defense lawyers at the Law Offices of Schlissel DeCorpo can help you if you have a foreclosure problem. Our foreclosure defense lawyers litigate defective mortgages, defective foreclosure lawsuits, predatory lending and all other types of real estate related matters. We can explain the federal laws on foreclosure and how they affect you. We attend foreclosure court conferences for our clients.

In the appropriate situation, we will discuss foreclosure related bankruptcy issues, such as filing a Chapter 7 and a Chapter 13 bankruptcy with you. In bankruptcy situations, there is an automatic stay that goes into effect, ordered by the court, that stops foreclosure from moving forward. In some bankruptcy situations, we can eliminate second mortgages. At the end of the bankruptcy, we can assist you inre- establishing your credit.

Feel free to set up a free consultation with us. We will discuss your foreclosure options with you. Thank you for visiting our foreclosure blog.

Bankruptcy and Foreclosure

The main reason for homes going into foreclosure in the United States is the high unemployment rate. Homeowners who lose their jobs can’t pay their mortgages and, eventually, their homes go into foreclosure.

Subprime Loans

President Obama’s programs to deal with the foreclosure crisis in the United States were originally focused on individuals who had taken out subprime loans. It was originally thought that the subprime loan crisis was the primary cause of the high foreclosure rate in the United States. But there is a new villain in the real estate crisis – constant high unemployment rates in the United States.

Federal Programs Dealing With Unemployment and Foreclosure

The Obama Administration does have programs to help individuals who have lost their jobs delay mortgage payments. Unfortunately, the programs are designed to delay mortgage payments for a period of only two months. Since the average length of unemployment is now nine months, these programs don’t work. As of the present time, only about seventy-four homeowners have qualified for these programs.

Bank Bailout Program

The Bank Bailout Program undertaken by the Obama Administration provided $46 billion for the purpose of allowing homeowners whose homes have fallen into foreclosure to keep their homes. The Treasury Department has only spent $1.85 billion dollars to date. It is estimated that more than a million homes have gone into foreclosure because of insufficient assistance from the government for unemployed Americans.

An Obama Administration spokesperson has stated the problems with the programs to assist homeowners whose homes have fallen into foreclosure and are currently unemployed are related to the fact that the programs are voluntary. It is up to the financial institutions, the mortgage servicers and the investors to decide who receives aid and who doesn’t. James Parrot, an adviser at the White House’s National Economic Counsel, stated, “We are trying to be careful in designing programs that, at the end of the day, aren’t just about spending money but getting people back on their feet.”

Home Affordable Mortgage Modification Program (HAMP)

The Home Affordable Mortgage Modification Program was designed as a foreclosure prevention initiative. Approximately 675,000 homeowners have received mortgage modifications under this program. This represents less than 10% of the homeowners who required financial aid to keep their homes from being foreclosed upon.

Department of Housing and Urban Development Program

There is a program that has been initiated by the Department of Housing and Urban Development to deal with unemployed homeowners. More than a million dollars has been allocated to finance this program. The program is designed to provide loans to homeowners who have lost their jobs. These loans can last for a period of up to 24 months. As of the present date, there are only five states that have implemented this program.

Conclusion

The foreclosure mess in the United States, initially caused by granting sub prime loans to unqualified homeowners, is further exacerbated by the unemployment crisis that continues to exist in this country.

Bankruptcy and Foreclosure

We are foreclosure defense lawyers. We help homeowners stay in their homes, even when they’re in foreclosure. We assist homeowners with mortgage modifications and mortgage modification programs that fail to meet their needs.

We litigate predatory lending issues, defective foreclosure lawsuits, defective mortgages and issues involving federal laws and foreclosure. We attend foreclosure court conferences on behalf of our clients. We discuss foreclosure related bankruptcy issues.

In the appropriate circumstances, we file Chapter 7 and Chapter 13 bankruptcieson behalf of our clients. We discuss with our clients why bankruptcy filings will be helpful to them and the types of bankruptcies available to them. Filing bankruptcy can stop foreclosures from moving forward and stop debt collection from collection agencies and collection lawyers. At the end of the bankruptcies, we can help our client in re-establishing credit. We appreciate your spending time on our foreclosure blog.

Foreclosure Horror Story

Warren Nyerges and his wife Maureen purchased a home from Bank of America in St. Petersburg, Florida. They paid $165,000 for a twenty-seven-hundred square foot home.

Foreclosure Proceedings Initiated on Home

Several months after paying $165,000 for the home and having no mortgage on it, Warren and Maureen were sued in a foreclosure proceeding. They originally thought this was a joke. The house had no mortgage on it. This was the start of a saga lasting almost two years. A representative from Bank of America told Warren he was not current on his mortgage. This was ridiculous; he didn’t have a mortgage.

Homeowners Sue Bank of America

Warren and Maureen eventually sued Bank of America. After painstakingly researching this situation, Warren and Maureen found out that their names were taken from their real estate contract to buy the house and placed on a previously initiated foreclosure proceeding.

Florida Attorney General Investigation

The Attorney General’s office in Florida investigated this matter. They ascertained the attorney representing Bank of America had engaged in fraudulent practices. He had overcharged homeowners in legal fees. He also brought foreclosure proceedings without having the appropriate documents showing the banks were owed money on the homes. Eventually, Maureen and Warren were able to straighten out their problem with the help of a foreclosure defense attorney.

Foreclosure Help

Is your home in foreclosure? If so, we can help you save it! We are a foreclosure defense law firm. For more than 45 years, we have helped our clients in obtaining mortgage modifications and dealing with mortgage modification programs that fail to meet their needs. We represent our clients in foreclosure defense litigation. We litigate issues involvingdefective mortgage, predatory lending, defective foreclosure lawsuits and other types of real estate issues. We attend foreclosure court conferences on behalf of our clients.

At the time of our initial consultation, we provide all foreclosure options to our clients. In situations when foreclosure related bankruptcies make sense, we discuss either filing a Chapter 7 or Chapter 13 bankruptcy. Filing bankruptcy immediately stops the foreclosure from moving forward. Sometimes the bankruptcy can also eliminate second mortgages. We discuss with our clients how to re-establish credit at the end of the bankruptcy. Feel free to call to discuss your foreclosure options. We appreciate your visiting us on our foreclosure blog.

Minority Groups and Bankers Fight New Mortgage Loan Rules

There has been an odd alliance between the NAACP, the National Council of La Raza, a Latino Civil Rights Organization and the American Bankers Association. They all are fighting new rules which will make it more difficult for minority members to obtain home mortgage loans.

The New Rules Make Mortgages Unobtainable for Some

The mortgage crisis had a greater impact on minority homeowners and low income homeowners than the rest of the populous. They were more susceptible to predatory lending practices that involved subprime loans.

The new rules sought by bank and regulators would make it difficult for low income Americans and minority individuals to obtain new mortgages. David Stevens, the CEO of the Mortgage Bankers Association stated, “But now the risk is that we go too far the other way. We still need to be able to make affordable mortgages that don’t just go to the wealthy, who can afford the biggest down payments and who have the most positive credit ratings.” He made these comments based on his organization’s opposition to the requirement that all new prospective homeowners make a 20% down payment. The fact of the matter is that most families who seek to buy a home do not have 20% of the cost of the home to lay out as a down payment.

The re-writing of the mortgage rules requires a delicate balance. During the hay day of the easy mortgages, the subprime crisis was created. We are still dealing with the aftermath of this crisis. Looking forward to home ownership is still, for many, the American dream. The rules in connection with obtaining new mortgages have to be fair and reasonable, and they should not encourage families to purchase homes they can’t afford; however, these rules should not make it impossible for low income families to obtain mortgages.

Foreclosure Defense and Bankruptcy Lawyers

We are foreclosure defense lawyers. We help homeowners stay in their homes, even when they’re in foreclosure. We assist homeowners with mortgage modifications and mortgage modification programs that fail to meet their needs.

We litigate predatory lending issues, defective foreclosure lawsuits, defective mortgages and issues involving federal laws and foreclosure. We attend foreclosure court conferences on behalf of our clients. We discuss foreclosure related bankruptcy issues.

In the appropriate circumstances, we file Chapter 7 and Chapter 13 bankruptcieson behalf of our clients. We discuss with our clients why bankruptcy filings will be helpful to them and the types of bankruptcies available to them. Filing bankruptcy can stop foreclosures from moving forward and stop debt collection from collection agencies and collection lawyers. At the end of the bankruptcies, we can help our client in re-establishing credit. We appreciate your spending time on our foreclosure blog.

Sarah Palin Buys Foreclosed Home in Arizona

Sarah Palin can be added to the long list of mortgage fraud victims! Palin bought a home in Scottsdale, Arizona, for 1.7 million dollars. She recently found out that her title to the home may be invalid.

Robo-signers

The robo-signer scandal involved banking institutions and mortgage companies that took title to homes without having the proper documentation. The five bedroom home bought by a company Sarah Palin had an interest in was acquired by the mortgage company through fraudulent or tainted documents. A close examination of the title documents to the property have revealed there were two fraudulent signatures involved in re-financing and foreclosure transactions with regard to this parcel of property. These two questionable issues concerning the property have raised the prospect that the mortgage company that sold the property to Sarah Palin didn’t have good title to the property. It is expected that there will be significant litigation, that will take years to straighten out, as to whether Sarah really is the owner of this property.

Conclusion

When you buy a foreclosed property, make sure you obtain title insurance. If you cannot get title insurance on the property, you are taking the risk that the property you thought you owned is owned by someone else!

Foreclosure Defense In New York

If your house is in foreclosure, we can help you. We’ve been fighting foreclosuresfor more than two decades. We litigate defective mortgages, defective foreclosure lawsuits, predatory lending, violations of federal laws and other real estate issues. We can help you obtain mortgage modifications and we can counsel you concerning mortgage modification programs that fail to meet your needs.

We also assist our clients with foreclosure related bankruptcies. These bankruptcies can either be a Chapter 7 or Chapter 13 bankruptcy. We will explain to you why filing bankruptcy may be the best route to deal with your foreclosure issues and the types of bankruptcies that are available to you. Filing the bankruptcy stops foreclosure proceedings from moving forward. It also stops other debt collection activities involving credit cards and other debts.

Feel free to schedule a free consultation. We will explain your foreclosure optionsto you. Thank you for visiting our foreclosure blog.

Foreclosure Defense in Valley Stream, Lynbrook, Baldwin, Malverne, Freeport, Oceanside, Long Beach, Elmont, Lakeview, West Hempstead, Hempstead, Merrick and Bellmore, New York

We represent individuals throughout the New York Metropolitan area with divorce and child custody, personal injury, car accident, wrongful death, estate administration, nursing home and medicaid issues

The information you obtain at this website is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your particular legal issue. This is attorney advertising.

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