The Right to Stay in Your Home

The Right to Stay in Your HomeIf a bank brings a foreclosure lawsuit against your home, you have a right to stay in the home during the pendency of the lawsuit. Foreclosure lawsuits sometimes, if handled by an experienced foreclosure attorney, can take years to get through the courts. However, if you fail to respond to the foreclosure Summons and Complaint in a timely manner, or if you abandon your home, the foreclosure process can be expedited and you can lose your home more quickly and with minimal notice.

You have the right to stay in your home until there is a final court order in the landlord/tenant court to force you to vacate the home. You should not leave early.

Foreclosure Scams

The are many foreclosure scams. You may be contacted by all types of people. The foreclosure notices are in the public domain. The scammers can find them in newspapers and on the internet. Before you sign any documents or take action regarding your home you should consult with a foreclosure attorney. This way you will avoid being cheated or defrauded out of your home.

Before the Foreclosure Lawsuit Starts

Homeowners in the State of New York have a right to a ninety (90) day notice before a foreclosure lawsuit is initiated by the financial institution that holds the mortgage on their home. New York Real Property and Actions Law (Real Property Actions and Proceedings Law Section 1304) requires a financial institution to provide a homeowner with specific and helpful notice regarding their rights and obligations during the foreclosure process. This notice specifically must advise the homeowner that they have a right to remain in their home until such time as a foreclosure sale is concluded. It also states they have an obligation to maintain their property and pay applicable taxes until such time as a foreclosure sale is completed.

schlissel-headshotThe law firm of Schlissel DeCorpo LLP has been helping families deal with mortgage and foreclosure problems for more than 30 years. We can be reached at 718-350-2802, 516-561-6645 or 631-319-8262 or by e-mail at info@sdnylaw.com.

Reverse Mortgage – Frequently Asked Questions – Part 2

Is a reverse mortgage a financial transaction of last resort?

Reverse Mortgage – Frequently Asked Questions – Part 1A reverse mortgage can be a viable and strategic financial tool. It is a man in which seniors can supplement their existing financial portfolio, and retirement benefits. A reverse mortgage should be considered and based on the homeowner’s financial circumstances.

Do homeowners have to make monthly payments on a reverse mortgage?

No. There are no monthly mortgage payments. The homeowner has to pay for the maintenance on their home, the insurance and property taxes on their home. The reverse mortgage allows the homeowners to use equity from their home while continuing to live in their home.

Can the homeowners outlive the reverse mortgage?

No. A reverse mortgage lasts for the rest of the lives of the homeowners, as long as they pay the insurance, property taxes and they maintain the home ingood repair.

What happens to the funds involved in the reverse mortgage if they are not all withdrawn during the life of the homeowners?

If the homeowners die without receiving all of the funds from the reverse mortgage, the funds will become part of the homeowners’ estate. When a homeowner dies, the homeowners’ heirs have up to 6 months to either repayThe loan or sell the house and repay the loan.

What can the funds in a reverse mortgage be used to pay?

The funds from a reverse mortgage can be used to pay virtually any debts or expenses the homeowners have. They can be used to pay an existingmortgage, medical bills, home repairs and renovations, in-home nursing care and virtually any other expenses the homeowners have.

Do the homeowners risk losing their home when they take out a reverse mortgage?

No. If the homeowners fulfill their obligations on the reverse mortgage which is solely related to maintaining the home, maintaining homeowner’s insurance and paying the property taxes, they have virtually no risk of losing their home.

What happens if the home appreciates during the term of the reverse mortgage?

If the home appreciates during the term of the reverse mortgage the equity in the home increases. This means if the home is sold to repay the reverse mortgage there would be funds left over. If there is a significant increase in the value of the home during the term of the reverse mortgage, the homeowners can refinance the home and payoff the reverse mortgage.

Who owns the home in a reverse mortgage?

The homeowner owns the home. A reverse mortgage just allows the homeowners to pull equity out of their home while maintaining the ownership of the home.

schlissel-headshotThe law firm of Schlissel DeCorpo LLP has been helping families deal with mortgage and foreclosure problems for more than 30 years. We can be reached at 718-350-2802, 516-561-6645 or 631-319-8262 or by e-mail at info@sdnylaw.com.

Foreclosure Consumer Bill of Rights

Foreclosure Consumer Bill of RightsThe State of New York has a residential foreclosure actions consumer bill of rights. This gives homeowners information they can expect if their home goes into foreclosure. The foreclosure legal action is a lawsuit initiated by the bank’s attorneys to repossess the home, sell it and use those funds to pay off the mortgage.

The Foreclosure Process.

The foreclosure process starts by the homeowner receiving a ninety (90) day notice that the home is going into foreclosure. After ninety (90) days a Summons and Complaint will be served upon the homeowner. The homeowner at that point should immediately contact a foreclosure attorney. There are many actions the foreclosure attorney can do to help the homeowner. The foreclosure attorney can stop the foreclosure from going forward and sometimes tie it up in court for years. The foreclosure attorney can pursue on behalf of the homeowner a mortgage modification or forbearance agreement or other arrangements to help the homeowners and their family stay in the home.

The Response to a Foreclosure Lawsuit

When the homeowner retains an attorney, the attorney for the homeowner will file an answer to the foreclosure lawsuit. This stops the foreclosure lawsuit from going forward and allows homeowners to assert their rights. A failure by the homeowner to submit a written answer to the foreclosure lawsuit puts the homeowner at risk that the foreclosure lawsuit will move forward more quickly through the court and the homeowner will not obtain notice of the sale of their home until it is too late to stop it from being sold.

schlissel-headshotThe law firm of Schlissel DeCorpo LLP has been helping families deal with mortgage and foreclosure problems for more than 30 years. We can be reached at 718-350-2802, 516-561-6645 or 631-319-8262 or by e-mail at info@sdnylaw.com.

Reverse Mortgage – Frequently Asked Questions – Part 1

How much money will you receive from a reverse mortgage?

Reverse Mortgage – Frequently Asked Questions – Part 1The amount of money that can be received from a reverse mortgage usually ranges between 40% and 60% of the home’s appraised valuation. In situations where the seniors are older, the amount of money they can receive in the reverse mortgage is usually higher.

What are the factors that are used by the financial institutions to determine the amount given to the homeowners?

There are 3 factors that are used to underwrite the homeowner:

  • The age of the youngest of the homeowners,
  • The value of the home, and
  • The current rate of interest.

If there is an existing mortgage on the home or other liens, they must be paid off at the time a reverse mortgage is taken out. There are also closing costs involved in obtaining a reverse mortgage.

How does the homeowner receive their funds?

The homeowner can receive their funds on the reverse in any of the following manners:

  • All the money at once;
  • Line of credit that the homeowners draw against;
  • Firm payments on a specific schedule;
  • Guaranteed payments for as long as the homeowner lives.

How does a low credit score impact the homeowner’s ability to obtain a reverse mortgage?

Unlike in traditional mortgages, a low credit score is not a significant drawback when obtaining a reverse mortgage.

How does someone qualify for a reverse mortgage?

There are a variety of qualifications necessary to meet the standards of obtaining a reverse mortgage.

  • To start with the homeowner must be at least 62 years of age.
  • They must own their home and it must be their primary residence.
  • There must be equity in the borrower’s home.

What are the benefits, if any, of homeowners obtaining a reverse mortgage?

Benefits of obtaining a reverse mortgage:

  1. As long as the homeowner complies with the terms of the loan, they don’t have to make any payments on the loan.
  2. With a reverse mortgage homeowners will not lose their Medicare benefits or Social Security benefits.
  3. Homeowners sometimes end up owing more than the equity in their homes. (The loan is underwritten.)
  4. Reverse mortgages can provide homeowners with a sense of financial freedom. It gives them cashflow to live with dignity.

schlissel-headshotThe law firm of Schlissel DeCorpo LLP has been helping families deal with mortgage and foreclosure problems for more than 30 years. We can be reached at 718-350-2802, 516-561-6645 or 631-319-8262 or by e-mail at info@sdnylaw.com.

When Should A Homeowner Take Out A Reverse Mortgage

When Should A Homeowner Take Out A Reverse MortgageA reverse mortgage is a relatively complex financial product. It requires careful consideration by the homeowner before undertaking to get involved in a reverse mortgage. Here are some of the situations where a reverse mortgage may be applicable for homeowners:

  • The homeowners are running out of money and may want to stay in their home until they die.
  • If the homeowners are in a position to sell their home, and then can purchase a smaller less expensive home, this will generally be a better route to take then obtaining a reverse mortgage.
  • The homeowner must be capable and healthy enough to live in their home and maintain it for a reverse mortgage to be an acceptable alternative.
  • The reverse mortgage is not a good idea if the homeowner wants their children or heirs to inherit their home.
  • The reverse mortgage may be a good idea if the reverse mortgage creates a source of income for the homeowners which gives the homeowner sufficient income to live in their home and maintain the home.

Before homeowners get involved with a reverse mortgage, it is recommended they consult with an attorney that is knowledgeable regarding reverse mortgages.

schlissel-headshotThe law firm of Schlissel DeCorpo LLP has been helping families deal with mortgage and foreclosure problems for more than 30 years. We can be reached at 718-350-2802, 516-561-6645 or 631-319-8262 or by e-mail at info@sdnylaw.com.

Video : Statute of limitations defense

Video : Bankruptcy defenses to foreclosures

Video : Mortgage Modifications

Video : How to deal with a foreclosure

Video : What you can use reverse mortgages for

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