Archives for October 2014

Foreclosure Law

mortgage modification lawyerIn New York State there is a statute known as the New York Real Property Actions and Proceedings Law section 1304. This statute, in June of this year, was extended for five additional years. This section of the law requires a financial institution provide “at least 90 days before a lender, an assignee, or a mortgage loan servicer commences legal action against the borrower…such lender, assignee or mortgage loan servicer shall give notice to the borrower”.

90 Days Notice to Homeowner

The section requires the notice to the homeowner provide a warning they are on the verge of losing their home in a foreclosure lawsuit. In addition, this notice requirement gives key information concerning how long the homeowner is in default on their mortgage and how much is due and owing on their mortgage. The law requires service of this notice be given to the homeowner and they be given a reasonable opportunity to take action to save their home such as by negotiating a mortgage modification.

Prerequisite for Foreclosure Lawsuit

The service by the financial institution and/or its representatives of the notice under this section of the law is a necessary prerequisite before a foreclosure lawsuit can be initiated. In the event the financial institution fails to fully comply with this requirement, a homeowner in a foreclosure proceeding can move to have the foreclosure case dismissed.

Settlement Court Conferences

In June of this year, the settlement court conference requirements in foreclosure lawsuits was also extended for five years. New York Civil Practice Law and Rules section 3408 had established a mandatory settlement court conference requirement in all foreclosure lawsuits. Upon the service of a summons and complaint in a foreclosure lawsuit, the Supreme Court within twenty days of proof of filing of this foreclosure lawsuit, is required to schedule a mandatory foreclosure conference. The purpose of the foreclosure court conference is to have settlement discussions between the homeowner and the representatives of the financial institution. New York Civil Practice Law and Rules section 3408 requires both the homeowner and the representative of the financial institution negotiate in good faith to reach a solution to the foreclosure case by having the mortgage modified. It is the court’s responsibility to see to it both parties negotiate in good faith and there are not unreasonable delays caused by either party.

Lenders Not Compelled To Provide Mortgage Modifications

Unfortunately, even though a lender must attend a foreclosure court conference they have no obligation other than negotiate in good faith. Simply stated, they do not have to grant a mortgage modification. They can deny it for any reasonable reason. Unfortunately for homeowners, courts cannot force a lender to grant a mortgage modification under New York law.

assisting homeowners on Long IslandElliot S. Schlissel is a foreclosure defense attorney helping homeowners stay in their homes throughout the Metropolitan New York area.

Documents Used to Obtain a Mortgage

Please click on the link below to watch today’s video blog:

http://youtu.be/MlHgJj_8Xhw

Elliot S. Schlissel is a foreclosure defense lawyer.  He can be reached at 516-561-6645, 718-350-2802 or by email to schlissel.law@att.net.

Judge Eliminates All Past and Future Interest in a Foreclosure Lawsuit Due To Bank’s Bad Faith

foreclosure defense on Long IslandLaSalle Bank had brought a foreclosure legal action in the Supreme Court in Suffolk County. In its pleadings the bank claimed they were both the owner and holder of the note which was secured by a mortgage. The defendant in the case did not deny he had defaulted in making 4 mortgage payments. His default was directly related to the fact he was in jail. However, he brought an application to the court requesting all interest on the foreclosed home be eliminated. He claimed LaSalle Bank had unreasonably delayed the legal proceedings in the foreclosure action. They had requested numerous duplicative document demands.

Numerous Duplicative Document Production Requests

The case was heard before Justice Jeffrey Arlen Spinner sitting in the Supreme Court in Suffolk County. Justice Spinner found there were numerous duplicative document production demands. The homeowner had appeared 24 separate times for mandatory settlement conferences. Judge Spinner found LaSalle Bank had not complied with HAMP guidelines. In addition, he found they failed to negotiate with the homeowner in good faith. Justice Spinner found due to LaSalle’s bad faith and the bad faith of their servicing agents, all present, past and future interest on the mortgage in this foreclosure lawsuit was to be eliminated.

Conclusion

Banks need to cooperate to make the HAMP work or they will be punished by judges.helping homeowners stay in their homes

How to Reduce Mortgage Payments

To view today’s video blog, please click on the link below:

http://youtu.be/FUldQvJ2NWQ

Elliot S. Schlissel is a foreclosure defense attorney.  He can be reached at 516-561-6645, 718-350-2802 or by email to schlissel.law@att.net.

Bank’s Failure to Negotiate in Good Faith

To watch today’s video blog, please click on the link below:

http://youtu.be/vdPBvNifXM4

Elliot S. Schlissel is a foreclosure defense lawyer.  He can be reached at 516-561-6645, 718-350-2802 or by email to schlissel.law@att.net.

Bank Delays Tolls Interest in Foreclosure Lawsuit

mortgage modification attorneysA homeowner by the name of Lucic brought an application before Supreme Court Justice Peter Moulton who sits in New York County. The motion in the foreclosure case was to stop the mortgage payments from accruing in the foreclosure lawsuit that had been brought against him concerning his condominium apartment. Justice Moulton took the position the 6.5% interest rate on the mortgage held by Bank of America was a bit high taking into consideration the current interest rate payments.

HAMP Application

Bank of America opposed the motion. They claimed they had reviewed the HAMP application submitted by Lucic and they denied it pursuant to the Freddie Mac HAMP guidelines. Justice Peter Moulton found the argument submitted by Mr. Lucic, that Bank of America violated New York Civil Practice Law section 3408. The bank had failed to timely and properly process his mortgage application for a loan modification. They also continually made demands for the same documents which had previously been submitted to the financial institution. The court took the position Bank of America had engaged in a “two year run around”. The court took into consideration Lucic had diligently and faithfully provided Bank of America with the information they requested on many occasions. The court therefore took action and tolled (stopped) interest from accruing on this foreclosure from April 1, 2010 through April 30, 2012.

Conclusion

Each and every week homeowners come into my office and they tell me the same thing. They submitted a mortgage modification application and the bank they were dealing with continually asked they resubmit the same information over and over again. Sometimes these submissions took place over a period of years. The reason why the mortgage modification process doesn’t work is the banks have refused to properly fund this program. By under staffing the program, and not setting up internal guidelines, they have frustrated individuals who apply for mortgage modifications. For the large majority of home owners seeking help, HAMP instead of helping them, frustrates them.helping homeowners stay in their homes

Proper Time to Rescind a Contract

Please click on the link below to watch today’s video blog:

http://youtu.be/zUgSCQYjSG4

Elliot Schlissel is a foreclosure defense attorney.  He can be reached at 516-561-6645, 718-350-2802 or by email to schlissel.law@att.net.

Lack of Standing Alleged in Pleadings

To watch today’s video blog, please click on the following link:

http://youtu.be/Hy-KjZvRT0E

Elliot S. Schlissel is a foreclosure defense attorney.  He can be reached by telephone at 516-561-6645 or 718-350-2802, or by email to schlissel.law@att.net.

Underwater Homes and the Housing Market

To watch today’s video blog, please click on the link below:

http://youtu.be/PqKONpMSmBc

Elliot S. Schlissel is a foreclosure defense lawyer.  He can be reached at 516-561-6645, 718-350-2802 or by email to schlissel.law@att.net.

The Impact of Foreclosures on the Rental Market

Please click on the link below to watch today’s video blog:

http://youtu.be/9qalW-q5bB0

Elliot S. Schlissel is a foreclosure lawyer.  He can be reached by telephone at 516-561-6645, or 718-350-2802 or by email to schlissel.law@att.net.

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