Archives for November 2011

Government Turning a Quarter Million Foreclosed Homes Into Rentals

Homes Into RentalsThe President is considering turning a quarter of a million homes taken over by government controlled agencies into rentals. Putting these homes on the market for sale will only further depress the real estate market. The Federal Housing Finance Agency would like to put 250,000 homes that are owned by Fannie Mae, Freddie Mac and the Federal Housing Administration on the market to be rented. These homes have been obtained by government agencies pursuant to foreclosure proceedings. Edward DeMarco, who is currently the acting director of the Federal Housing Agency, has stated that “renting these homes instead of selling them in foreclosure may reduce credit losses and help stabilize neighborhoods and home value.” It is estimated that homes placed on the market for sale in foreclosure sell for 20% less than their actual value.

Foreclosure Crisis Creates Demand In Rental Market

Since the housing crisis started, approximately three million former homeowners are now renting. This has reduced the inventory of homes available to be rented. Families that lose their homes in foreclosure have no choice but to rent. Their credit is ruined by the foreclosure proceedings, they generally have no money for a down payment and their only option is to rent. There are those who claim America is becoming a society of renters. The American dream of owning a single family home may become a broken dream. This dream emanated from the conclusion that owning a home would not only provide you with a stable place to live, but will allow you to develop equity. However, during a time of economic turmoil the value of single family homes has been going down. A home, instead of being a worthwhile investment in real estate for the past few years, has been a horrible investment. Single family homes have been declining in value for the last five years. It is estimated that it may be an additional five to ten years before single family homes start increasing in value. In a market where the value of real estate is going down, renting seems to be the logical choice. Why buy a home today that will be worth less in the future?

I think the Obama Administration is on the right track. I believe instead of foreclosing on homes and selling them at auction, the homes should be rented to prevent the continuing oversupply of homes to the real estate market. This will give the real estate market a greater opportunity to reach equilibrium between buyers and sellers. Down the road, when the real estate market recovers, the government can offer these homes to be sold to their renters or to other worthy individuals or families.

Foreclosure Defense Lawyers

Before your house falls into foreclosure, it is suggested you apply for a mortgage modification. If your mortgage modification program does not meet your needs, unfortunately your home may end up being foreclosed upon. Should you receive a Summons and Complaint in foreclosure, our law office can help you. We will attend foreclosure court conferences on your behalf and speak to the Judge about motivating your financial institution to give you a mortgage modification. We’ll also submit a formal written answer on your behalf. Defenses such as defective mortgages, predatory lending, defective foreclosure lawsuits and other real estate related legal defenses can be interposed on your behalf. Our law firm will use its extensive experience in handling these types of cases, to keep you in your home.

We will also discuss with you foreclosure related bankruptcy options. Filing a Chapter 7 or Chapter 13 bankruptcy may be the best route for you in dealing with your foreclosure situation. Why should you file bankruptcy and the types of bankruptcies available to you would be discussed upon your initial free consultation. Should you file bankruptcy you can sometimes eliminate second mortgages. Bankruptcy will stop foreclosure proceedings from moving forward and stop all debt collection activity against you. Call us for a free consultation.

We will discuss all of your foreclosure and bankruptcy options with you. Our phone numbers are 1-800-344-6431, 516-561-6645 or 718-350-2802. You’ve just visited the Elliot Schlissel, Esq. foreclosure blog.

NY Foreclosure Law Firm Fined Two Million Dollars

NY Foreclosure Law Firm Fined Two Million DollarsSteven J. Baum, P.C. of Amherst, New York, has been fined two million dollars for inappropriate foreclosure legal practices. Steven J. Baum, P.C. is the largest foreclosure law firm in the state of New York. Steven J. Baum, P.C. has agreed, in addition to paying the two million dollar fine, to re-vamp its practices with regard to the handling of pleadings, affidavits and mortgage assignments in New York State and Federal Courts.

The Law Firm has agreed to implement a variety of internal controls regarding its processing and handling of foreclosure proceedings. They have agreed to review original promissory notes received from their clients or custodians of the notes prior to filing new foreclosure lawsuits. These actions will bring the firm in compliance with the order issued by Chief Judge Jonathan Lipman regarding attorneys representing lending institutions.

Mortgage Foreclosure Proceedings

US Attorney Preet Bharara, from the Southern District of New York, stated, with regard to the settlement, “in mortgage foreclosure proceedings, there are no excuses for sloppy practices that could lead to someone mistakenly losing their home.” She stated further that “homeowners facing foreclosure cannot afford to have faulty paperwork or inadequate evidence submitted and today’s agreement will help minimize that risk.”

Baum Law Firm Released from Civil Liability

The Baum Law Firm, upon payment of the two million dollar fine and the imposition of new internal procedures, will be released from potential civil liability under the Financial Institutions Reform, Recovery and Enforcement Act of 1989. The Baum Law Firm acknowledges that it occasionally made inadvertent errors in its legal filings in state and federal courts, which it attributes to human error in light of the high volume of mortgages and foreclosures it handled throughout the State of New York in the wake of the national subprime mortgage crisis.”

It should be noted that this is a settlement. It is not a finding of wrongdoing by the Baum Foreclosure Law Firm. The Baum Law Firm has also agreed to have experienced attorneys supervising all aspects of the preparation of documents and reviewing of documents before they are filed with the courts. In addition, they are implementing a one to two-year training program for their attorneys to bring them in compliance with the rules regarding foreclosure proceedings in the state of New York.

Hopefully, this law firm will live up to its responsibilities in dealing with foreclosure proceedings. Taking a family’s home and putting them on the street is a sad end to the American dream. These proceedings should be handled in a manner that protects the homeowner’s rights and sees to it that homes aren’t wrongly foreclosed upon.

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.

A Thousand Days to Foreclose a Home

There is an old expression that courts have two speeds, slow and backwards. In the State of New York, that is certainly true if you’re involved in foreclosureThousand Days to Foreclose a Home proceedings. It is estimated that it takes approximately a thousand days to bring a case from start to finish in both Nassau and Suffolk counties in New York. The delays in foreclosure proceedings are caused by the courts being overwhelmed by the unprecedented number of homes going into foreclosure. There are more than twenty thousand homes tied up in foreclosure proceedings in Nassau and Suffolk counties at the present time. The high level of foreclosures continues to depress the real estate markets on Long Island.

Foreclosure Court Conferences

New York State has a statute that requires a court conference on all new foreclosure proceedings. At the court conference, the Judges and attorneys look into possibility of avoiding foreclosure. Mortgage modifications and other solutions to the foreclosure proceedings pending before the courts are discussed with the homeowners’ attorneys and the attorneys for the financial institutions. These foreclosure court conferences often result in negotiations leading towards mortgage modifications and/or other solutions to these problems.

Cases in New York are subject to a significant amount of scrutiny by the courts. The purpose of this scrutiny is to see to it that innocent homeowners are not improperly removed from their homes.

Saving Your Home, Foreclosure Defense Attorneys

We can save your home from foreclosure. We attend foreclosure court conferences on your behalf. We can submit an answer to your foreclosure proceeding that can include defenses involving defective mortgages, defective foreclosure lawsuits, predatory lending and other real estate related defenses. We are knowledgeable about federal laws and foreclosure. We will provide you at the time of the initial consultation with all of your foreclosure options.

These options will include foreclosure related bankruptcies. The filing of either a Chapter 7 or Chapter 13 bankruptcy will stop foreclosures from moving forward. Filing a bankruptcy will also stop debt collectors and collection lawyers that may be harassing you. There are many bankruptcy myths that are untrue. Bankruptcy will not permanently destroy your credit. We will be able to help you re-establish credit after filing a bankruptcy.

Call us for a free consultation. We will discuss all foreclosure defenses and bankruptcy options with you at your initial free consultation. We appreciate your visiting our foreclosure blog.

Foreclosed Homes Being Filled by Criminals

Foreclosed Homes Being Filled by CriminalsJamaica, New York, has had a rash of foreclosed homes. Homes that are being foreclosed upon and have become vacant are now being filled with drug dealers, gang members and other criminals. These homes are “becoming a magnet for criminal activity.” This is according to Deputy Inspector Miltiadis Marmara, the Commanding Officer of the precinct in South Jamaica. Community members in Jamaica are concerned about criminals and vagrants moving into these empty homes. They have huge parties. They stand outside the homes smoking weed and using other drugs. When the police are called, they run away. After the police leave, they return.
There are more than 75 homes in the Jamaica area that are suffering from these types of problems.Jamaica, New York, is a middle class community. Hard working, blue collar workers have used their life savings to buy homes. In their free time, they fix them up.

Neighborhoods Affected By Foreclosure Crisis

The foreclosure crisis is destroying good neighborhoods in Jamaica. Hard working, middle class families are being forced to live next to empty homes that squatters have moved into. The squatters make noise and partake in a lot of drug abuse and criminal activity. This is another problem caused by the foreclosure crisis.

Who Is Stopping Foreclosures in New York

The foreclosure defense lawyers at the Law Offices of Schlissel DeCorpo can stop foreclosure proceedings in their tracks. We file written Answers with the court and opposing counsel on behalf of our clients. We attend foreclosure court conferences wherein we try to convince judges to put pressure on the financial institutions to give our clients mortgage modifications. We litigate issues concerning defective mortgages, defective foreclosure lawsuits, predatory lending and all types of other real estate related matters. Our office has substantial knowledge concerning Federal laws and foreclosure.
We can also help you deal with foreclosure-related bankruptcy issues. Filing either a Chapter 7 or a Chapter 13 bankruptcy may be necessary to deal with the foreclosure on your home. If you file bankruptcy, you can eliminate second mortgages in some situations, stop foreclosure, stop other debt collections practices and at the end of the bankruptcy, action can be taken to re-establish your credit.

Call us for a free consultation at 1-800–344-6431, 516-561-6645 or 718-350-2802.

Sales of Summer Homes Hit New Lows

Sales of Summer Homes Hit New LowsThe depressed real estate market in the United States reached a new low in July, 2011. Home sales fell 3.5% during that month. This brought home sales to the lowest point in the last 13 years. Home prices keep falling. This makes it harder and harder for individuals to sell their homes. The reduction in home values has been a driving force in the economic problems in the United States. Consumers who feel the value of their home is going down are disinclined to spend money on everyday purchases. There is a negative effect on the economy in the United States when consumers believe their homes are losing value.

Difficulties In Purchasing New Homes

Banks now require larger down payments before a new homeowner can purchase a home. In addition, lending rules have become very stringent. New home buyers are also concerned that the home they purchase will be worth less money in the future. The motto of many perspective home buyers is: why buy now if things will only get less expensive in the future? Instead, they sit and wait and watch the real estate market continue to decline. The wait and see approach by new home purchasers is causing the inventory of homes on the market to increase. As the inventory of new homes for sale on the real estate market increases, it creates a downward pressure on the sales price of these homes.

Appraisals Killing Home Sales

When a purchaser decides to buy a home, they must apply to the bank for a mortgage. The bank thereafter sends their appraiser out to appraise the home. In recent months, these appraisals are coming back with information indicating the homes are worth less than the prospective purchaser is in contract to pay for it. This often kills the real estate deal.

Home Prices Falling by More Than 5% in 2011

Economists have estimated that home prices will decline between now and the end of the year by an additional 5%. This is unfortunate. The ownership of a single family home was the American dream. The dream seems to be turning into a nightmare!

Call us for a free consultation, we will discuss whether filing bankruptcy may be in your interest and all other foreclosure related options. Our phones are monitored 24/7. Call us at 1-800-344-6431, 516-561-6645 or 718-350-2802.

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 in re- establishing your credit. Feel free to set up a free consultation with us. We will discuss your foreclosure options with you.

New York Foreclosure Law Firm Fined Two Million Dollars

New York Foreclosure Law FirmSteven J. Baum, P.C. of Amhearst, New York, has been fined two million dollars for inappropriate foreclosure legal practices. Steven J. Baum, P.C. is the largest foreclosure law firm in the state of New York. Steven J. Baum, P.C. has agreed, in addition to paying the two million dollar fine, to re-vamp its practices with regard to the handling of pleadings, affidavits and mortgage assignments in New York State and Federal Courts.The Law Firm has agreed to implement a variety of internal controls regarding its processing and handling of foreclosure proceedings. They have agreed to review original promissory notes received from their clients or custodians of the notes, prior to filing new foreclosure lawsuits. These actions will bring the firm in compliance with the order issued by Chief Judge Jonathan Lipman, regarding attorneys representing lending institutions.

Mortgage Foreclosure Proceedings

US Attorney Preet Bharara, from the Southern District of New York, stated, with regard to settlements in mortgage foreclosure proceedings, that there are “no excuses for sloppy practices that could lead to someone mistakenly losing their home.” She stated further that “homeowners facing foreclosure cannot afford to have faulty paperwork or inadequate evidence submitted and today’s agreement will help minimize that risk.”

Baum Law Firm Released from Civil Liability

The Baum Law Firm, upon payment of the two million dollar fine and the imposition of new internal procedures will be released from potential civil liability under the Financial Institutions Reform, Recovery and Enforcement Act of 1989. The Baum Law Firm

“acknowledges that it occasionally made inadvertent errors in its legal filings in state and federal Courts, which it attributes to human error in light of the high volume of mortgages and foreclosures it handled throughout the state of New York in the wake of the national subprime mortgage crisis.”It should be noted that this is a settlement. It is not a finding of wrongdoing by the Baum Foreclosure Law Firm. The Baum Law Firm has also agreed to have experienced attorneys supervising all aspects of the preparation of documents and reviewing of documents before they are filed with the courts. In addition, they are implementing a one to two-year training program for their attorneys to bring them in compliance with the rules regarding bringing foreclosure proceedings in the state of New York.

Hopefully, this law firm will live up to its responsibilities in dealing with foreclosure proceedings. Taking from a family, its home and putting them on the street is a sad end to the American dream. These proceedings should be handled in a manner that protects the homeowner’s rights and sees to it that homes aren’t wrongly foreclosed upon.

Foreclosure Defense Attorneys

We can fight your foreclosure. We litigate predatory lending issues, defective foreclosure lawsuits, and defective mortgages. We attend foreclosure court conferences for our clients. We draft mortgage modifications and deal with mortgage modification programs that fail to meet our clients needs.

We also litigate foreclosure related bankruptcies, whether they’re a Chapter 7 bankruptcy or Chapter 13 bankruptcy. We also assist our clients in re-establishing credit after filing a bankruptcy. We can help stop your foreclosure from moving forward! Call us and we will provide you with a free consultation. We will discuss all of your foreclosure options.

Why Banks Foreclose

Why Banks ForecloseOur Law Office deals with families whose homes are being foreclosed upon each and every week. We are continually asked by our clients why financial institutions simply don’t reduce the amount of the loan to coincide with the equity in their home, instead of foreclosing on their homes and selling it at auction for less than half of its real value. Unfortunately, it is extremely rare for a bank or other financial institution to reduce the principal in the mortgage to bring it back into conformity with the actual value of the house. Banks do not usually change their practices. Dropping principal balances to the amount of the actual indebtedness on the mortgage would be a departure from usual bank procedures. Banks simply do not wish to explain why the value of their mortgage portfolio on their financial statements are incorrect.

Banks Are In the Business of Making Money

Lenders don’t wish to write down the balance of defaulting loans because they do not see any upside for them in engaging in this practice. Banks are interested in making as much money as possible. Writing down loans does not accomplish this.

Writing Down Loans Will Not Avoid Default By Homeowners

Lenders do not believe that writing down mortgage loans will reduce the likelihood homeowners will default. Banks studies have shown individuals whose homes are underwater (there is a negative equity in the homes) will most likely be unable to pay their mortgages, even if the mortgage is renegotiated to the value of their home.

Mortgage Departments at Banks Are Understaffed and Undertrained

Most financial institutions want to deal with mortgages that are current and on which they are making money on. They look at servicing mortgages that are in default as a financial burden. This causes banks to be chincy on the amount of workers they hire to handle these loans and to skimp on the training of these employees. Mortgages servicing companies tend to be short-staffed and don’t have a lot of motivation to hire more employees on money losing loans.

Mortgage Problems and Solutions

Hopefully you are up to date on your mortgage, but should you be having financial problems and/or your mortgage falls behind, we may be able to help you obtain a mortgage modification. Should a mortgage modification not be available for you, we can represent you in a foreclosure proceeding and keep you in your home! Our foreclosure defense lawyers attend foreclosure court conferences for our clients. We meet with our clients and discuss foreclosure options, such as foreclosure related bankruptcy filings. We litigate, in New York State Courts, foreclosure defenses such as defective mortgages, violations of truth in lending laws, predatory lending and defective foreclosure lawsuits. We also can assist you in other real estate related problems.

Should bankruptcy filing be the appropriate way to deal with your foreclosure problem, we can file either a Chapter 7 or Chapter 13 bankruptcy for you. Upon meeting with us, we’ll discuss the types of bankruptcies that are available to you and why filing bankruptcy may help you. Filing a bankruptcy stops foreclosures from moving forward and can stop all debt collection activity. Call us for a free consultation. We appreciate your visiting our foreclosure blog.

Why are Mortgage Modifications Denied?

Have you applied for a mortgage modification? If you have, you may have experienced a long, arduous process. The processing agency or financial institution may request your paperwork on three, four, or as many as six different occasions. Some New Yorkers who have come to our law firm have suggested that the mortgage processing companies are hiring imbeciles.

Long Delays

Why does the process have long delays? The reason for the long delays is the banks have failed to hire sufficient employees to properly process mortgage applications. The banks also didn’t take into consideration the length and depth of the financial crisis facing this country. The high unemployment rate, the down sizing of jobs and the recessionary problems in the United States have caused thousands and thousands of Americans to apply for mortgage modifications. The banks simply did not take into consideration the volume of mortgage modification applications they would be receiving.

Mortgage Modification Denials

There are a variety of reasons why your mortgage modification may be denied. The single largest reason for denying mortgage modifications is the financial institutions claiming you didn’t provide them with all the necessary paperwork. This is the most frustrating denial, especially when you provided the paperwork to them on several occasions and they simply lost or misplaced it. A second reason for denying mortgage modifications is that you have too much debt. If the financial institution feels you already have more debt that you can handle, they will turn down your mortgage modification application.

Insufficient Income

Another reason why many mortgage modification applications are denied is the failure to have sufficient income to support your financial obligations.

Bankruptcy

You can discharge debt through filing bankruptcy proceedings. You can go through the bankruptcy process and thereafter file a mortgage modification application. At the end of the bankruptcy, you will have eliminated your debt and you therefore may be a superior candidate for a mortgage modification at that time.

Second Mortgages

There are situations where a family’s mortgage modification application on their first mortgage is approved. However, they may still have a non-performing second mortgage. In these situations, you may be able to discharge your second mortgage by filing bankruptcy. A Chapter 13 bankruptcy can eliminate your second mortgage.

Foreclosure Lawyers

We can fight your foreclosure. We litigate predatory lending issuesdefective foreclosure lawsuits, and defective mortgages. We attend foreclosure court conferences for our clients. We draft mortgage modifications and deal with mortgage modification programs that fail to meet our clients needs.

We also litigate foreclosure related bankruptcies, whether they’re a Chapter 7 bankruptcy or Chapter 13 bankruptcy. We also assist our clients in re-establishing credit after filing a bankruptcy. We can help stop your foreclosure from moving forward! Call us and we will provide you with a free consultation. We will discuss all of your foreclosure options.

Foreclosure and Continuing to Live in the House for Years

Foreclosure And Continuing To Live In The House For YearsThousands of American families have stopped making their mortgage payments, their houses have gone into foreclosure and they’re living in their homes for years without making mortgage payments. Approximately four and a half million American homes are behind on their mortgage payments or have foreclosure actions pending against them. In two-thirds of these cases, the homeowners continue to live in their homes, with their families, without making any payments towards their mortgage. Many of these families have been living in their homes for more than a year and approximately one-third of the families have been living in their homes for more than two years, without making mortgage payments.

Foreclosures Move Slowly Through the Courts

In virtually all fifty states, the courts have been inundated with foreclosure proceedings. At a time of economic turmoil throughout the country, additional judges and resources have generally not been allocated to deal with the foreclosure crisis. This means that cases sit idle in the courts for long periods of time before the foreclosure actions are completed. It is estimated that it takes approximately a little more than a year and a half for the average foreclosure case in the United States to make it’s way through the courts. In the State of New York, in cases handled by my office, it generally takes three to five years for the cases to proceed through the courts.

Evictions After Foreclosure

Even if your home is foreclosed on and eventually sold years later at auction, you can still continue to stay in your home. At the end of a foreclosure sale, should someone buy your home, whether it be the bank or a third party, and they seek to remove you from your residence, they have to bring an eviction proceeding. Eviction proceedings are brought in landlord/tenant courts. These proceedings are separate and distinct from the foreclosure actions. There are additional calendar delays in these eviction proceedings. Most take anywhere from two to four months.

Foreclosure Defense Lawyer

The Law Offices of Schlissel DeCorpo handles foreclosure defense for homeowners. 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 conferencesfor 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. You can reach us at 1-800-344-6431, 516-561-6645 or 718-350-2802. We look forward to seeing you again on our foreclosure blog.

Analyzing Mortgage Applications

How large a mortgage can you afford? The size of a mortgage you can qualify to obtain will determine how much you can spend on purchasing a home. There are a variety of different factors looked at by banks when analyzing mortgage applications.

Debt – to – income Ratios

What is a debt to income ratio? There are two types of debt to income ratios. A front – end debt to income ratio and a back – end debt to income ratio. The front – end and back – end debt to income ratios are utilized by mortgage lenders during the mortgage application process. A front – end debt to income ratio is in reality a housing expense calculation. The theory is how much of an individual’s or family’s gross (pre tax) income can be utilized to make mortgage payments on a monthly basis. This front – end debt to income ratio usually runs between 28% and 33% of an individual’s or family’s income. This means that the financial institution will not approve your mortgage application if your debt to income ratio goes beyond the financial institution’s guide lines. This specifically applies to conventional loans and Federal Housing Authority (FHA) loans.

Back-end Debt to Earnings Ratio

The back – end debt to earning ratio is the percentage of you or your family’s gross (pretax) monthly income that will be utilized for debt service for your financial obligations. Financial obligations include your proposed mortgage, credit card bills, car loans, child support, and all other types of financial indebtedness in this ratio. The back – end debt to income ratio utilized by financial institutions in their mortgage underwriting process is usually between 36% and 40% of your gross monthly income. This means if your proposed new mortgage and other debts are more than 40% of your gross income, you will most likely get turned down for your mortgage application. In situations where there are assets in the bank and very high credit scores, financial institutions have been going as high as 48% on the back – end debt to income ratio.

Before you submit a mortgage application, you should calculate your front – end and back – end debt to earnings income ratios. This will give you a better idea as to whether you will qualify for the mortgage you are applying for.

Foreclosure Defense Lawyers

First you get the loan, then you start making payments to the loan. But what happens if your financial situation changes? If you lose your job, become disabled, are downsized or have other financial problems, you may find yourself in a foreclosure situation. Do not dispair. The Law Offices of Schlissel DeCorpo has been helping families deal with foreclosure problems for the last 45 years.

We provide all aspects of foreclosure defense. We attend foreclosure court conferences on behalf of our clients. We litigate issues such as defective foreclosure lawsuits, predatory lending, defective mortgages and other significant real estate related defenses. We’ve developed an expertise concerning federal laws and foreclosure.

We can also help you deal with foreclosure-related bankruptcy issues. Filing either a Chapter 7 or a Chapter 13 bankruptcy may be necessary to deal with the foreclosure on your home. If you file bankruptcy, you can eliminate second mortgages in some situations, stop foreclosure, stop other debt collections practices and at the end of the bankruptcy, action can be taken to re-establish your credit. Feel free to call us for a consulation. Our phone numbers are 1-800-344-6431, 516-561-6645 or 718-350- 2802. Thank you for visiting our foreclosure defense 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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