Archives for July 2014

Low Cost Loans Designed to Stop Foreclosure On Long Island Are Now Available

loan modification lawyerNew York Attorney General Eric T. Schneiderman has recently held a news conference with regard to the new low cost loan program designed to stop foreclosures. At his news conference he stated “we are going to provide loans to families that prevent them from losing their homes.” He went on to state “we know how hard Long Island was hit by the foreclosure crisis this was the worst of the worst. There was a big boom and a big bust.”

Foreclosures on Long Island

The foreclosure rates in Nassau and Suffolk Counties are among the highest in New York State. The highest rate of foreclosures is in the Village of Hempstead in Nassau County. Hempstead residents have a mortgage delinquency rate approaching 30%.

The New Program

Under the new program, families whose mortgages are overdue can borrow up to $40,000. These low cost loans can be used to bring mortgages up to date and deal with property tax issues. These loans will not be payable until the house is sold or the entire mortgage is repaid. These loans will be interest free. However, the amount due and owing will be adjusted to account for inflation. Applications for these loans will start being processed on September 15, 2014. Applications for Long Island residents will be processed first and a month later residents of other parts of the state can apply for this program. There is a requirement that individuals applying for this program earn less than 120% of the area’s median income.

helping homeowners stay in their homesElliot Schlissel is a foreclosure attorney. Elliot has been helping New Yorker’s stay in their homes for more than 45 years. Elliot and his staff of lawyers litigate foreclosures, deal with predatory lending issues, and assist clients in applying for mortgage modifications. His phones are monitored 24/7 and free consultations are offered.

Second Mortgage Foreclosures

mortgage attorneys on Long IslandA financial institution can bring a foreclosure lawsuit on a second mortgage. Home improvement loans and lines of credit against a home are examples of two different types of second mortgages. Second mortgages are subordinate to first mortgages. Even if you make payments on your first mortgage and are up to date, the financial institution holding the second mortgage can still foreclose on your home and take it back from you.

Second Mortgages and Short Sales

Even if you move forward with a short sale with regard to your home on your first mortgage, you still will owe your second mortgage lender. This means, unless you negotiate a deal with both your first mortgage holder and your second mortgage holder to do a short sale, you will be responsible for paying off your second mortgage. Issues involving second mortgages are somewhat different than issues involving first mortgages. If the first mortgage on your home is secured by all the equity in your home, or your home is under water with regard to the first mortgage (worth less than the amount of your first mortgage) the second mortgage is liening on air. Why is it liening on air? Because all of the equity in your home is being liened on by the first mortgage so there is no equity left for the second mortgage holder to lien on. This creates a situation where your second mortgage is more of a personal obligation such as a personal loan or credit card debt.

A Hundred Years of Combined Experience

Our attorneys have more than 100 years of combined legal experience. If you default on your second mortgage, we can provide you with a list of options to deal with this problem. Our law firm offers personal services to our clients and free consultations to individuals facing foreclosure problems. Call us for a free consultation. At your initial meeting we will layout a strategy, and game plan as to how to protect your home.homeowner advocates on long island

Why Apply For a Mortgage Modification?

mortgage modification attorneysThe reasons for applying for a mortgage modification have to do with reorganizing your financial obligation under your mortgage into a more affordable and more practical payment plan. If the payments on your mortgage can be reduced, modified or amended to the point you can afford to make these payments on a regular basis, you can pull your case out of a foreclosure situation.

Leverage in Mortgage Modification Negotiations

There are numerous mortgage modification programs. The granddaddy of them all is the Home Affordable Mortgage Program (HAMP) established by President Obama in his first term in office which has been extended while he is currently in office. Banks will also have their own in house mortgage modification plans. However, most banks are really not interested in giving you a mortgage modification. Most banks would rather write you off, foreclose on your home and move on to deal with customers they feel they can make money on. The large majority of homeowners who apply for mortgage modifications are turned down. Even those individuals and/or families receiving temporary mortgage modifications often are denied permanent modifications at the end of their temporary modification period. However, do not despair. There is a way of putting pressure on financial institutions to reconsider giving you a mortgage modification in the future.

Foreclosure Mediation Court Conferences

Under the law in New York, after a foreclosure lawsuit is started, the attorneys for the homeowner and the attorneys for the financial institution have to meet and negotiate, in good faith, in court at a foreclosure conference. Action can be taken utilizing the pressure of the court proceedings to reapply for a new mortgage modification even if turned down in the past.

Different Criteria for Different Lenders

No two financial institutions have the exact same requirements for mortgage modifications. The underwriting requirements vary from financial institution to financial institution.

Costs of Mortgage Modifications

There is usually no cost involved in mortgage modification programs. This means if you apply and are turned down, there are no expenses that you will have incurred. The writer firmly believes that God helps those who help themselves. If there is any possibility of obtaining a mortgage modification you should apply for one. There are all types of programs available. Some programs involve deferring significant portions of the debt and having balloon payments 20 or 30 years down the road. Applying for a mortgage modification can save your home from being taken from you in a foreclosure lawsuit.

Our law firm zealously litigates all foreclosure defense cases for our clients, however, we also negotiate in an appropriate manner with financial institutions to pull our clients out of foreclosure by having them granted mortgage modifications. Our attorneys have more than 100 years of combined legal experience. Should you have a foreclosure problem or a potential foreclosure problem, call us for a free consultation. We can be reached at 1-800-344-6431, 516-561-6645 and 718-350-2802.assisting homeowners

Why Should You Hire An Attorney To Represent You In A Foreclosure Lawsuit?

foreclosure attorney on long islandYour home is most likely your most significant single asset. It is a place where you and your family reside. It is the place where you can escape the rest of the world. Your own little castle. If you fall behind on your mortgage, you may face the situation where a bank will bring a foreclosure legal action to take your home back. This will create enormous stress and aggravation upon you and your family.

The legal system and especially the issues, tactics, and procedures involved in a foreclosure lawsuit are not generally known to the public at large. There are specific time restraints. There are obligations of the bank to file legal documents, court appearances that must be made, and applications that can be submitted to the court, and legal defenses that can be asserted.

What Can You Do To Save Your Home?

The most logical answer is to hire a foreclosure attorney with extensive experience in litigating with financial institutions for the purpose of saving family’s homes, obtaining mortgage modifications, and investigating improper bank practices such as bad assignments, and predatory lending.

Receiving Foreclosure Notice From The Bank

A financial institution or bank is supposed to provide you with 90 days notice that your home is going into foreclosure. After this 90 day period, they can serve you with a Summons and Complaint. When served with a Summons and Complaint in a foreclosure proceeding, you have 20 days to file an Answer with opposing counsel and the court, if served personally, and 30 days if served by any other means. This is an important statute of limitations which can have a major effect on the foreclosure lawsuit.

You must submit an Answer to the Summons and Complaint in the proper legal form or else you default in responding to the lawsuit. This can cause serious consequences for you and your family. Failure to submit the appropriate Answer with affirmative defenses and counterclaims within the statute of limitations time period for responding to a Summons and Complaint, eliminates your ability to legally defend the foreclosure lawsuit. It is therefore extremely important when served with a Summons and Complaint in a foreclosure that you contact a foreclosure defense lawyer to discuss your options. The early involvement of a foreclosure defense lawyer can save you from losing your home.

Improper Bank Practices

The writer of this article has dealt with scores of cases in which banks have been involved in all types of improper bank practices. Robo-signers executing inappropriate documents are one example. Bad assignments from one financial institution to another is a second example. Violations of Federal, State, and New York City banking laws with regard to the handling of the foreclosure or the underwriting of the loan are additional examples of potential defenses in a foreclosure lawsuit. Some of these defenses, if properly submitted, can stop the lawsuit in its tracks, and in some occasions, even get the case completely dismissed.

Faced With Foreclosure? Call Us!

The attorneys at the Law Offices of Schlissel DeCorpo deal with foreclosure lawsuits and foreclosure issues virtually every day. Our firm litigates cases throughout the Metropolitan New York area, on Long Island, the five boroughs, the City of New York and Westchester. We have an unparalleled history of success in keeping our clients in their homes. Even in situations where the bank or financial institution is right and our clients are completely wrong, the average case handled by our office takes between 3 and 5 years to get through the courts.

Call us for a free consultation. Our phones are monitored 24/7 and we offer free consultations to prospective clients. Our phone numbers are 1-800-344-6431, 516-561-6645, and 718-350-2802.homeowner advocates on long island

Buyout of Damaged Homes on Fire Island

foreclosure defense for long islandersIn the 1960’s, the United States Army Corp of Engineers laid out plans to develop a shield for Fire Island, which is located on Suffolk County’s south shore. Under this plan, several thousand homes in flood zones would have been torn down and natural buffers, including wetlands, would have been restored. Unfortunately this never took place.

Superstorm Sandy

After Superstorm Sandy there were scores of homes damaged on Fire Island. Fire Island is a barrier island which lies a few miles from the South Shore of Suffolk County. There are 15 separate communities on Fire Island. After Superstorm Sandy damaged numerous homes, it was proposed that 40 or 50 homes on Fire Island be torn down and dunes be established at those locations to protect the rest of the island. Surveys have been conducted by the Suffolk County Department of Public Works with regard to the amount of land necessary to establish these dunes to protect the island.

It was originally estimated it would cost $46 million to tear down 41 homes and create 15 foot high dunes to protect Fire Island. This estimate has turned out to be too low. It is now estimated it will cost between $60 million and $80 million to tear down the homes, obtain easements and to rebuild the dunes necessary to protect the island.

The Program is Moving Slowly

Homeowners on Fire Island are concerned because the program is now a year behind schedule. There are 41 homes which have been condemned by Suffolk County on Fire Island. These homes cannot be sold. Homeowners who were offered buyouts under this program, who feel they were not offered adequate compensation for their condemned homes, can bring legal action to try to obtain a higher price for their home.

assistance for homeownersElliot S. Schlissel is a foreclosure attorney. He represents homeowners on Long Island and in the City of New York whose homes are in foreclosure. He litigates issues involving improper bank practices, bad assignments, predatory lending, and all types of issues affecting homeowners facing foreclosure lawsuits. In addition, Elliot helps his clients obtain mortgage modifications.

History of Foreclosure Court Conferences

foreclosure defense on long islandIn 2008, at the height of the financial crisis, foreclosure court conferences were mandated with regard to homeowners who had taken out sub-prime and/or expensive mortgages. When this new requirement for financial institutions went into effect, they were also required to give notice 90 days prior to bringing a foreclosure lawsuit in New York. In 2009, the foreclosure settlement conferences were mandated to all types of foreclosure proceedings brought against homeowners. The foreclosure settlement conference requirements were scheduled to expire in February of 2015. The New York State Legislature, New York State Assembly and New York State Senate, have approved a bill to extend the foreclosure settlement conference requirement until 2020.

Courts Inundated with Foreclosures

The legal system in New York State is having difficulty dealing with the huge number of foreclosure settlement conferences and foreclosure lawsuits. In 2013, there were 100,000 settlement conferences in the courts in New York State. It is expected there will be in excess of 100,000 settlement conferences in 2014.

100,000 Foreclosures Pending

There are approximately 100,000 foreclosure cases pending in New York State. In May of this year, the administrator for the legal system in New York State decided to place more judges at foreclosure settlement conferences. This was in response to complaints from foreclosure lawyers that financial institutions were sending attorneys to the conferences who did not have the authority to make settlements. If the attorneys for the financial institutions cannot make decisions concerning settling the foreclosure cases, the whole purpose of the settlement conferences is defeated. It is anticipated the new judges will be in place and there will be new procedures to follow by the end of July 2014.helping homeowners stay in their homes

Hurricane Sandy Buyouts Moving Forward

foreclosure defense attorneysIn the month of May 2014, New York Rising, the agency that is involved with utilizing federal funds to pay for damages caused by Superstorm Sandy, purchased 34 homes. The agency is now in the process of hiring an auction company to sell off some of the homes which were purchased, in addition to several hundred others. The homes sold will either be fixed up or totally rebuilt to make them resistant to future hurricanes.

New York Rising Buying More Damaged Homes

New York Rising is in the process of buying about 500 homes on Long Island. The average price to be paid for these homes is $360,000. There is an additional 500 homeowners who have submitted applications to have their homes purchased. Many of the homes that are being purchased by New York Rising will not be resold. These homes will remain vacant and the land will not be developed. These properties will be used as a buffer against future storms.

Michelle Mittleman, a lawyer who represents a Facebook group of Sandy victims, indicates although New York Rising is paying reasonable value for these homes, they are moving too slowly.

Barbara Brancaccio, a spokesperson for New York Rising, stated they have “moved aggressively to work with homeowners to ensure that we provide them with a fair price, and comply with federal regulations.”

homeowner advocates on long islandElliot Schlissel is a foreclosure lawyer. He represents homeowners whose homes are in foreclosure. He litigates foreclosure lawsuits, helps homeowners obtain mortgage modifications, and gets great satisfaction helping families stay in their homes.

Home Flipping in Nassau County, New York

foreclosure assistance for homeownersSpeculators have been involved in a significant amount of home flipping in Nassau County. A home is considered to have been flipped when it is purchased and then resold within a period of 180 days. There were approximately 200 homes flipped in Nassau County during the six month period ending in April 2014. The average purchase price of the homes that were flipped was $316,000 and the sale price of the homes within that same six month period was an average of $423,000. This provided a profit of over 33% to the speculators doing the flipping.

Why Are Homes Being Flipped in Nassau County, New York?

The reason for homes being flipped in Nassau County has to do with the fact that home prices are going up and there has been an increase in new foreclosure lawsuits. During the first quarter of 2014, there was a 4% rise in the number of foreclosure cases initiated by financial institutions in the courts in Nassau County. There has been a 6% year to year increase in the value of homes in Nassau County.

Pursuant to RealtyTrac approximately 2% of all the homes purchased in Nassau County have been purchased by speculators and flipped.

Conclusion

Speculators are very attuned to market trends. The fact that speculators have gone back into the marketplace in Nassau County to purchase homes indicates they believe real estate is appreciating at a significant level in Nassau County. Does this make it the right time for prospective purchasers to purchase a house in Nassau County? Yes, I believe purchasing a home in Nassau County is an excellent investment at this time.

helping homeowners stay in their homesElliot S. Schlissel is a foreclosure attorney. He has been defending homeowners in foreclosure lawsuits for more than 45 years. Elliot and his staff of attorneys are well known in the court system and have had an excellent success rate in helping their clients obtain mortgage modifications. Elliot and his staff of attorneys are available for free consultations to homeowners having financial difficulties.

The Effect of Bankruptcy on Foreclosure

foreclosure assistance for homeownersIf my debts are discharged in bankruptcy, is the foreclosure over? Even if your debts are discharged in a Chapter 7 bankruptcy proceeding, your foreclosure problems are not over. If you discharge your unsecured debts and you enter into an arrangement to reaffirm the mortgage and make your mortgage payments your problems with the bank foreclosure may be over. In most cases involving a Chapter 7 bankruptcy, the personal obligation portion of the mortgage debt is discharged (erased) but the lien portion of the mortgage on your home still exists.

The Mortgage

A mortgage actually involves two separate and distinct documents. The first document is the promissory note which can be simply described as an I Owe You (IOU). The second item is a lien. Liens on real property in the State of New York are referred to as mortgages.

The Promissory Note

The purpose of the promissory note is to lay out the terms of the financial transaction, such as the amount you are borrowing, the interest rate, and the payment arrangements. The promissory note is actually the document that creates the personal financial obligation to the bank.

The lien which is placed on your home acts as a type of collateral to secure your repaying the IOU (personal obligation portion of your debt). The lien gives the bank security in your home. Even if you file a chapter 7 bankruptcy and discharge the personal obligation (IOU portion) of your debt, the lien still exists and the bank, when obtaining the release from the automatic stay from the federal bankruptcy court, can move forward with the foreclosure on your home.

The benefit of the chapter 7 bankruptcy discharge will prevent the bank from obtaining a deficiency judgment against you. A deficiency judgment involves a situation where the bank sells your home for less than is owed and goes after the balance of the funds they are owed.

Conclusion

A discharge in a chapter 7 bankruptcy discharges all of your personal obligations, except those which are designated as non-dischargeable by statute. After you receive a discharge, the automatic stay from the bankruptcy court will eventually be lifted. Once it is lifted, the bank will still be able to move forward with the foreclosure in a New York State Court unless you have made a payment arrangement with the financial institution.

So what can you do? Meet with a skilled foreclosure attorney. Find out what your rights are, your remedies are, and the best way to proceed.homeowner advocates

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

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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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