Missing Mortgage Payments

MISSING MORTGAGE PAYMENTSHomeowners who miss making mortgage payments may be facing the risk of being placed into foreclosure. A foreclosure, is a legal proceeding designed to effectuate the bank taking the house back from the homeowner and thereafter evicting the homeowner from their homes.

AVOIDING FORECLOSURE

The best way to deal with the foreclosure is to avoid it. Homeowners who are falling behind on their mortgage payments, should look into a forbearance agreement which involves delaying their mortgage payments. In addition, they can look into modifying their mortgage to make it less expensive in the short run to keep up with their mortgage payments.

LATE MORTGAGE PAYMENTS

In New York, home mortgage loans have a 15 day grace period regarding making mortgage payments. After the 15 day grace period, the homeowner may incur a late fee on the missed mortgage payment. In addition, missing mortgage payments late or making mortgage payments can have a negative impact on the homeowner’s credit rating.

MORTGAGE MODIFICATIONS

A mortgage modification is a means of restructuring the mortgage payments to avoid default and make the mortgage more affordable for the homeowners. If this is done, it has a minimal impact on any potential damage to the homeowner’s credit score. There are a number of different ways to modify a mortgage. Here’s a list of some of them:

  • You can seek to reduce the interest rate on your mortgage payment. ∙ You can temporarily pause making mortgage payments and have them made-up at a later point in time.
  • You can ask the bank to reduce the amount of your mortgage.
  • In cases where the homeowner has an adjustable rate mortgage, the homeowners can request the mortgage be changed into a fixed rate mortgage.

HOMEOWNERS BEING SERVED WITH A FORECLOSURE LAWSUIT

If the homeowner falls three months or more behind on their mortgage, the financial institution has the ability to accelerate the mortgage, which means call the entire mortgage due and owning and thereafter start a foreclosure lawsuit. A foreclosure lawsuit is usually started by a process server showing up at the homeowner’s home and serving them with the foreclosure lawsuit documents. If served with the foreclosure lawsuit set of documents, the homeowner will be shocked to find out how complicated and long the paperwork is. Foreclosure lawsuit legal documents can be anywhere from 100 to 500 pages long, including exhibits attached to the summons and complaint. What do you do if you get served with the foreclosure lawsuit? It is strongly suggested you immediately hire a foreclosure defense attorney.

schlissel-headshotThe law office of Schlissel DeCorpo have been defending homeowners regarding mortgage issues for more than three decades. They can be reached at 516-561-6645, 718-350-2802, 631-319-8262 and 914-998-0080 or emailed at Elliot@sdnylaw.com.

Video : Discussing Mortgage Modifications

Elliot discusses a case on Discussing Mortgage Modifications.

A Court Bars Enforcement of Mortgage Due to Violation of Statute of Limitations

A Court Bars Enforcement of Mortgage Due to Violation of Statute of LimitationsIn a case before Supreme Court Justice Debra Silber who sits in Kings County, a homeowner brought an action for a declaratory judgment. The declaratory judgment was pursuant to Real Property Actions and Proceedings Law Section 1501.4. The homeowner wanted the court to declare that the mortgage on the homeowner’s property was not enforceable. The homeowner’s claim was it was not enforceable because the six year statute of limitations had expired. The homeowner asked Judge Debra Silber to have the mortgage cancelled, discharged an struck from the records of the New York City Register

Summary Judgment

The homeowner asked the court pursuant to a summary judgment motion declaring that on the basis that there were no issues of fact disputed that a trial would not be required on the issue of the mortgage being unenforceable due to a six year statute of limitations acted as a time bar.

Acceleration of the Mortgage

Issues were raised in this case with regard to the acceleration of the mortgage and the deceleration of the mortgage. Judge Silber granted plaintiff’s application. She found that the plaintiff had shown on her papers that she was entitled to a summary judgment cancelling and discharging the mortgage on her property. The homeowner had shown that the mortgage had been accelerated on or about April 16, 2009. The homeowner commenced her action to discharge the mortgage and have it cancelled on February 10, 2018. Since more than six years had expired, the homeowner was entitled to a judgment dismissing and cancelling the mortgage of record on her property.

schlissel-headshotElliot S. Schlissel, Esq. is a foreclosure attorney. He has been representing homeowners in foreclosure cases throughout the Metropolitan New York area for more than 45 years. Elliot and his firm actively litigates the defense of foreclosure lawsuits against homeowners. He can be reached for a free consultation at 800-344-6431 or e-mailed at Elliot@sdnylaw.com.

Mortgage Modifications

Mortgage ModificationsAs 2008 came to an end the stock market took a plunge. The economy in the United States seemed to have slowed down. This has caused more homeowners to fall behind on making their mortgage payments. When a homeowner cannot make their payments under their mortgage affirmative action can be taken to deal with the situation prior to the home going into foreclosure. One of the better actions a homeowner can take is to apply for a mortgage modification. Since 2008 millions of homeowners in the United States have applied for mortgage modification. A mortgage loan modification can be the answer to homeowners’ financial issues in many situations.

The Modification

A loan modification basically seeks to change the terms of the original loan in a manner that makes it easier, less expensive and more convenient for the homeowners to make their mortgage payments. The granting of a loan modification by the lending institution may stop the home from going into foreclosure and being lost. If the bank approves the mortgage modification, there is usually a period of 3 months to 6 months when the homeowners receives a temporary modification. If they make their payments on time they are usually offered a permanent loan modification.

schlissel-headshotElliot S. Schlissel, Esq. is a foreclosure attorney. He helps homeowners obtain mortgage modifications and fights foreclosure lawsuits. He has been helping homeowners keep their homes throughout the Metropolitan New York area for more than 3 decades. He can be reached at 800-344-6431 or e-mailed at: Elliot@sdnylaw.com for a consultation. If you have a problem with your mortgage you should contact Elliot for a free consultation.

Wells Fargo Ordered to Pay $575 Million Regarding Unfair Trade Practices

Unfair Trade PracticesIn a recent case the Attorney Generals for all 50 States in the United States and the District of Columbia reached a settlement with Wells Fargo Bank. The settlement involves a variety of consumer protection claims and unfair trade practices utilized by Wells Fargo Bank. The settlement was in the amount of $575,000,000.

Wells Fargo Acted Improperly

Wells Fargo agreed to this settlement based on numerous improper actions it took and laws it violated. Among the many improper actions and laws it violated Wells Fargo charged customers for mortgage rate lock extension fees.

Wells Fargo has acknowledged millions of deposits, credit card and other accounts were created without the consumer’s permission. Wells Fargo was involved in the transfer of funds without consumer authorization. Wells Fargo acknowledged these improper actions took place between 2002 and 2017.

Texas Attorney General Ken Paxton stated “the settlement held Wells Fargo accountable for its widespread victimization of its customers through unfair and deceptive trade practices.”

Wells Fargo Acknowledges Problems

Wells Fargo’s Chief Executive Officer Tim Sloan stated: “this agreement disclosed our serious commitment to making things right in regard to past issues as we worked to build a better bank.”

schlissel-headshotElliot S. Schlissel, Esq. is the managing partner of Schlissel DeCorpo LLP. Elliot is a foreclosure attorney. He represents homeowners with regard to mortgage modifications and defending foreclosure lawsuits throughout the Metropolitan New York area. He can be reached for a free consultation at 800-344-6431 or e-mailed at Elliot@sdnylaw.com.

Reverse Mortgages Explained

Reverse MortgagesA reverse mortgage is different than a conventional mortgage. A reverse mortgage is used by seniors who own homes. It seeks to allow them to utilize a portion of the home’s equity as collateral for a loan. The loan is usually not repaid until the homeowner or his or her surviving spouse dies or permanently moves out of the home. Most reverse mortgages give the estate of the homeowner 6 months either to sell the home and pay off the balance due on the mortgage or make other arrangements to satisfy the mortgage.

The Estate and the Reverse Mortgage

In the event there is not enough equity in the home to pay off what is owed on the reverse mortgage the estate and the heirs are not liable for the unpaid portion of the reverse mortgage.

Eligibility for Reverse Mortgage

A homeowner must be a minimum of 62 years of age to be eligible for a reverse mortgage. If the homeowner does not own the home free and clear, all existing prior mortgages must be paid off from the proceeds of the reverse mortgage. If there are other liens or judgments, they also must be paid from the reverse mortgage. There are also financial eligibility requirements necessary to obtain a reverse mortgage.

Obligations Involving Reverse Mortgages

Reverse mortgages are usually only given on homes which are an individual’s primary residence. The homeowner is responsible for paying the property taxes on the home. In addition the homeowner must pay for the homeowner’s insurance and maintain the home according federal housing administration requirements.

Estate Issues

When both of the homeowners die or when the home is no longer the primary residence of either of the homeowners for a period in excess of a year the reverse mortgage can be called due. At that point the homeowners or the estate of the homeowners can either repay the reverse mortgage or have the house listed for sale. If upon the sale of the home more funds are received than are owed on the reverse mortgage, the balance of the funds received over and above the repayment of the reverse mortgage belong to the estate. If there are not sufficient funds to pay off the reverse mortgage, the bank loses out and can’t recover the portion of the amount owed which is in excess of the sale price of the home.

Is a Reverse Mortgage Right for You

A reverse mortgage allows senior homeowners to access funds which are tied up in the equity of their homes. Sometimes this is an appropriate action to be taken. However, it is not always appropriate. A reverse mortgage will not give the homeowner access to 100% of the funds in the house. Reverse mortgages usually only give the homeowner 60 or 70% of the funds related to the equity in the house. In some cases it is simply better for the homeowner to sell the home, rent an apartment and move into a less expensive residence.

schlissel-headshotElliot S. Schlissel, Esq. is a foreclosure attorney who has been representing homeowners with regard to reverse mortgages, foreclosures and other real estate related issues for more than 3 decades. He can be reached for a free consultation at 800-344-6431 or e-mailed at Elliot@sdnylaw.com.

Homeowner’s Proceeding to Cancel Her Mortgage And Remove it as a Lien on Her Property was Granted

homeowner’s-proceedingIn a recent case before Justice Salvatore Modica, who sits in a real estate Supreme Court part, in Queens County, Persaud brought a lawsuit under Real Property Actions and Proceedings Law Section 1501(4) to cancel a mortgage on his home. In this proceeding Persaud moved for summary judgment. He asked that the mortgage on his home be extinguished and he be discharged from all obligations under the underlying promissory note executed in connection with this mortgage.

Motion Granted

Justice Modica granted Persaud’s motion. He found that she met her prima fascie obligation of showing entitlement to a judgment. Persaud had established the underlying foreclosure action by US Bank had been originally commenced in December 2009 and in March of 2011 the foreclosure lawsuit was dismissed. A second foreclosure lawsuit was commenced in 2017. This foreclosure lawsuit was barred by the 6 year statute of limitations.

In Persaud’s lawsuit against US Bank under Real Property Actions and Proceedings Law Section 1501(4), US Bank was unable to dispute Persaud’s showing there was no genuine issue of fact with regard to the 6 year statute of limitations having expired. Persaud was entitled to summary judgment. Under Real Property Actions and Proceedings Law Section 1501(4), a homeowner is entitled to having a mortgage cancelled as a lien on his or her property if the applicable statute of limitations regarding commencement of a suit has expired. In this case more than 6 years has passed since Persaud had defaulted on making payments on her mortgage. Therefore, US Bank did not have the right to bring another foreclosure action against Persaud. Justice Modica granted Persaud’s motion to cancel, discharge and remove the mortgage as a lien on her property.

Conclusion

US Bank and their attorneys failed to follow the law and as a result Persaud ended up with a free house!

schlissel-headshotElliot S. Schlissel is a foreclosure lawyer representing homeowners throughout the Metropolitan New York area for more than 45 years. He can be reached at 800-344-6431 or e-mailed at Elliot@sdnylaw.com.

Reverse Mortgage Foreclosure Issues

Mortgage-Foreclosure-IssuesReverse mortgages are made to homeowners aged 62 or older. They allow the homeowners to access the equity in their home to pay their bills while allowing them to continue to live in their homes. In situations involving reverse mortgages the homeowner no longer makes monthly payments. The amount owed to the financial institution gets charged against the homeowner’s home equity and these loans are usually insured by the Federal Housing Administration. The reverse mortgage is not due and payable until the homeowner’s death.

Taxes and Insurance on the Home

Although the homeowner does not have to make mortgage payments, the homeowner is usually responsible for paying the property taxes, school taxes and maintaining their homeowner’s insurance. The failure by homeowners to pay these expenses can cause the financial institution that provided the reverse mortgage to bring a foreclosure lawsuit based on the homeowner’s non-compliance with the conditions involved in the mortgage.

Reverse Mortgage Foreclosure Default

New legislation requires reverse mortgage defaults now have to receive a 90 day preforeclosure notice under the Real Property Actions and Proceedings Law Section 1304. The amendment to this law causes financial institutions to participate in mandatory settlement conferences with regard to working out alternatives to foreclosing on the home regarding reverse mortgages.

The new reverse mortgage law indicates a list of the items that can trigger a reverse mortgage foreclosure. These include:

  • failure to include a required certificate of occupancy on an annual basis
  • death of the named borrower
  • failure to pay real property taxes
  • failure to maintain homeowner’s insurance
  • failure to pay water bills and sewer bills
  • failure to make required repairs
  • failure to occupy the home as a principal place of residence

Conclusion

This new legislation provides homeowners who have reverse mortgages many of the same protections homeowners who have conventional mortgages have. In addition, it provides them with notice as to any of the possible items which could cause their home to go into foreclosure.

schlissel-headshotElliot S. Schlissel is a foreclosure lawyer representing homeowners throughout the Metropolitan New York area for more than 45 years. He can be reached at 800-344-6431 or e-mailed at Elliot@sdnylaw.com.

Sue the Mortgage Loan Servicing Company

Loan-Servicing-Company

Loan servicing companies can be sued. Loan servicing companies can make errors that have a negative impact on mortgage holders. Loan servicing companies can inaccurately calculate the amount due and owing by the homeowners. Sometimes they do not properly review mortgage modifications submitted by the homeowners. Upon request sometimes they provide inaccurate loan reinstatement information.

Good Faith

Mortgage holders are supposed to act in good faith. New York Civil Practice Law and Rules Section 8408 defines what is considered “bad faith” by a mortgage company.

Loan Servicing Companies

Loan servicing companies often hire inexperienced poorly paid individuals to act as their customer service representatives concerning the submission of mortgage modification applications. Sometimes they do not appropriately train their personnel with regard to the issues faced by homeowners submitting mortgage modification applications.

The process of submitting a mortgage modification usually involves the submission of information to the loan servicing company. Their customer service representatives therefore input the data into a computer program called an algarhythm. The algarhythm actually determines whether the homeowner qualifies for a mortgage modification. If the data is not properly put into the computer program the decision to deny a homeowner a mortgage modification can be based on an error made by the data processing person who inputed the data.

Foreclosure Defense Attorneys

Foreclosure attorneys experienced with the mortgage modification process are often able to help homeowners who have in the past had problems obtaining mortgage modifications.

schlissel-headshot

Elliot S. Schlissel is a foreclosure lawyer representing homeowners for more than 3 decades. He can be reached at 800-344-6431 or e-mailed at Elliot@sdnylaw.com.

Technical Foreclosure Defenses

Technical-Foreclosure-Defenses

In almost all foreclosure situations the homeowners have applied for a mortgage, they have been approved by the financial institution, they obtained the mortgage, went to closing and purchased their home. Thereafter, the homeowners fell behind on their mortgage. So how can homeowners who borrowed the money and have not made the payments defend a foreclosure lawsuit? Most foreclosure defenses are based on the failure of the financial institution, its attorneys and/or its employees to comply with the many federal, state, local and other regulatory requirements involved in mortgage lending, recording of mortgages, servicing and administrating the mortgages, modifying the mortgages and providing the homeowners with the appropriate statutory notices they are entitled to. Lenders need to comply with many state and local ordinances andrules.

Issues Related to Closings

All financial institutions have disclosure requirements regarding what takes place at real estate closings. They are also laws and rules regarding predatory lending, fraud, unreasonable fees and other issues related to the underwriting of mortgages.

Standing Issues

Financial institutions have to produce the note. They need the original note before they can proceed with the foreclosure. Clear copies of the loan documents should be attached to the complaint. Homeowners should receive 30 days notice under Real Properties Actions and Proceedings Law Section 1304. There may be defective assignments of the mortgage. There may be late assignments of the mortgage. The individuals signing affidavits related to the foreclosure may not have had the appropriate authority to sign those affidavits. Some assignments of the mortgage may be invalid.

Mortgage Modifications

There are many issues that can occur with regard to the mortgage modification process. Sometimes financial institutions do not negotiate in good faith. They have an obligation in New York State to do this. Trial modifications sometimes are approved and then the permanent modifications are arbitrarily denied. Payments made under the trial modifications are sometimes kept by the financial institutions and homeowners are not given credit for those payments.

Litigation Issues

The Summons and Complaints in the foreclosure lawsuit must be properly served on the appropriate party. Homeowners are entitled to 90 days notice under the Real Property Actions and Proceedings Law before the foreclosure lawsuit is started. Financial institutions need to schedule foreclosure settlement mortgage conferences. They need to file affidavits of due diligence. The death of the homeowner can also create significant issues for the financial institution. Financial institutions also need to comply with the Fair Debt Collections Practices Act.

Legal Defenses and Affirmative Defenses

There are many types of defenses and affirmative defenses that can be alleged in foreclosures other than “I don’t owe the money”. The legal defenses need to be plead in the homeowner’s answer and they need to be backed up by detailed discovery demands forcing the financial institution to turn over all their books and records regarding the underwriting of the mortgage, the closing assignments of the mortgage and compliance with federal and state statutes. The way to win a case often involves investigating what the bank and their attorneys did and what they didn’t do. Finding the bank or their attorneys made a mistake in the mortgage or foreclosure process can be a basis for having the foreclosure lawsuit dismissed.

Elliot Schlissel

Elliot S. Schlissel, Esq. is a foreclosure lawyer having represented homeowners throughout the Metropolitan New York area for more than 3 decades. He can be reached at 800-344-6431 or e-mailed at Elliot@sdnylaw.com.

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