Foreclosure Defense Attorney in New York

Beware of Mortgage/Foreclosure Fraud – Part I

March 11, 2014 by Elliot S. Schlissel

foreclosure defense attorneys The number of homes going into foreclosure on a national basis has been decreasing. However, the number of homes in the Metropolitan New York area that have been placed into foreclosure by financial institutions has not been going down during the past few months.

Homeowners who find themselves with financial difficulties can be vulnerable to fraudulent mortgage and foreclosure schemes. In California, a woman by the name of Jewel Hinkles swindled approximately 1300 homeowners out of $5,000,000 through a group of companies which she claimed were in the business of buying distressed properties from the homeowners. This is one of many examples of fraudulent foreclosure/mortgage schemes that have been perpetrated on individuals finding themselves in financial difficulty and unable to make mortgage payments on their home.

Avoiding Foreclosure Scams

The most important thing to take into consideration in avoiding being defrauded is if a deal sounds too good to be true, it probably is fraudulent! Foreclosure proceedings are subject to public disclosure in the courts. It is therefore easy for criminals who seek to scam homeowners by obtaining information about their foreclosure and making false representations to the beleaguered homeowner.

Another type of foreclosure scam which is common involves alleged foreclosure counseling companies. Sometimes these companies solicit business with flyers dropped off in homeowners’ mailboxes or they actually come knocking on the door of homeowners whose homes have been placed into foreclosure by financial institutions.

Filed Under: Foreclosure, Foreclosure Defense Tagged With: defective foreclosure lawsuits, defective mortgages, foreclosure defense, foreclosure defense attorneys, New York foreclosure attorney, predatory lending

Methods of Avoiding Foreclosure

February 28, 2014 by Elliot S. Schlissel

Everyone who buys a home expects to be able to make their mortgage payments. Unfortunately, there are numerous hardships and problems in one’s life that may cause you to fall behind in making your mortgage payments. A death in the family, the loss of a job, a divorce, a disability or medical problem are just a few of the hardships that can occur that can cause you to fall behind on your mortgage payments.

Foreclosure is the start of proceedings to take back a home for non-payment of the mortgage. There are a number of strategies that can be utilized by a homeowner to avoid having their home being foreclosed.

Loan Forbearance Agreement

A loan forbearance agreement is a temporary arrangement between the homeowner and the bank. The purpose of the forbearance agreement is to give the homeowner a reasonable period of time to catch up on his or her mortgage payments. This gives the homeowner time to catch his or her breath! If the homeowner makes the agreements under the forbearance agreement they can become up to date on their mortgage.

Loan Modifications

The Home Affordable Mortgage Program (HAMP) was created by President Obama during his first administration. It still remains in effect in his current second term as President of the United States. This is a federal program that virtually all financial institutions are part of. The benefit of this program is it gives the homeowners who have fallen behind on their mortgage a chance to reduce their mortgage payments. The unfortunate part of the program is that it is an extremely poorly managed program by the individual banks and only approximately 1 in 5 people who apply for mortgage modifications are successful in obtaining them. In addition to President Obama’s mortgage modification program, many banks have their own internal mortgage modification programs. In theory, mortgage modification programs take into consideration the home’s current value, interest rates and the ability of the homeowner to make payments under this program.

Negotiated Short Sale

A negotiated short sale is a transaction where the homeowner contacts the bank and advises the bank they would like to sell the house which is currently under water (currently worth less than the amount of the mortgage). The bank, in a short sale, appraises the house and in the appropriate situation agrees that the house can be sold for less than the amount of the mortgage and the bank will satisfy the mortgage for less than they are owed. The writer of this article is not a big proponent of short sales. Short sales should only be undertaken at the end of the foreclosure process to avoid a deficiency judgement.

Bankruptcy

In the event you file a bankruptcy, you obtain a stay from a Federal Court that prevents a lender from moving forward with a foreclosure lawsuit in a New York State Court. In a Chapter 13 bankruptcy you enter into a plan to become current with your mortgage over a period of up to 5 years. In a Chapter 7 bankruptcy you eliminate the personal loan obligation portion of your debt. Therefore if the bank forecloses on your home, all they are entitled to receive is what they obtain from the sale of the house. They will not be able to obtain a deficiency judgment against you.

Filed Under: Foreclosure, Foreclosure Defense Tagged With: bankruptcy, foreclosure, foreclosure defense attorneys, foreclosure proceedings, Mortgage Modifications attorney

Qualifying for a Mortgage

February 26, 2014 by Elliot S. Schlissel

foreclosure defense attorneys The purchase of a single family home is usually the largest single purchase made by Americans during the course of their lifetime. Before you can purchase a home, it is strongly suggested you look into your ability to qualify for a mortgage to help you pay for the home. There are a number of significant factors taken into consideration by financial institutions when underwriting a mortgage.

Are You Employed?

The underwriters of mortgages at financial institutions are interested in your employment history. They are especially interested in if you are currently employed. If you are self employed, the underwriters may want detailed information about the capacity in which you are self employed. If you are working for a company or business, they are going to ask you questions as to how long you have worked in this position for, and what were your prior positions. It is especially important that you maintain good records concerning your past three years tax returns, bank statements concerning your checking and savings accounts, pay stubs and other material necessary to verify your employment history.

The Down Payment

If you are looking to obtain a conventional mortgage, most banks will loan you up to 80% of the cost of the house. This means you will have to come up with 20% of the funds on your own. In cases where you have a problematic credit history, you may need to put down more than 20% of the cost of the house as a down payment.

Closing Costs

There are numerous closing costs related to buying a home in New York. There are bank fees. There are underwriting fees. There are points payable to the bank. There are attorneys’ fees for your attorney and the attorney for the financial institution. There is the prepayment of taxes on the house. There is the payment of casualty insurance on the house. You will have to reimburse the seller for all of the oil in the oil tank. In addition, there are numerous other types of closing costs. It is estimated that closing costs in New York will run anywhere from $5,000 to $15,000 to purchase a home. You should carefully look into the closing costs with the attorney representing you on the real estate transaction.

Credit Scores

The financial institution will order credit reports for those individuals whose names will appear on the mortgage of the home. You should obtain a copy of your credit report in advance. In the event there is inaccurate information on your credit report, you should immediately take action to correct this. In the event your credit score is not high enough to meet your bank’s requirements to obtain a mortgage, there are a variety of things you can do to boost your credit score prior to submitting a mortgage application.

The Mortgage Loan Application Process

The process of obtaining a mortgage loan can be aggravating for the prospective homeowners. Financial institutions currently are asking for significant amounts of information from a prospective homeowner to determine whether you are a good risk and that you have the ability to repay your mortgage loan. Hopefully this article will open your eyes as to the various areas you should look in before contacting a financial institution and starting the process of trying to obtain a mortgage.

Elliot Schlissel has been representing clients in real estate related matters for more than 45 years. Elliot and his staff of attorneys represent homeowners who are buying and selling homes. In addition, Elliot and his staff of attorneys provide foreclosure legal defense for their clients.

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Modification Tagged With: foreclosure defense attorneys, Mortgage Modifications attorney, real estate

Foreclosures Hit Long Island Hard

February 18, 2014 by Elliot S. Schlissel

foreclosure defense attorney The foreclosure crisis on Long Island is much more serious than in the rest of the country. On a national basis, approximately 2% of all homes were in foreclosure during the month of January 2014. However, on Long Island, 6.3% of all homes were in foreclosure. That is three times the national average.

Long Island real estate has not recovered as fast as the rest of the nation for a variety of reasons. The court rules concerning foreclosures are designed to protect homeowners. However, the legal protection afforded homeowners impacts on the length of a foreclosure process through the courts in New York. During the 2013 calendar year, 663 homes were sold at auction in foreclosure on Long Island.

Rising Home Prices

Home prices have been rising on Long Island. The rising home prices allows more homes to be sold quickly and should have an impact on reducing the number of homes in foreclosure. The average home price, excluding homes on the east end of Long Island, during the last quarter of 2013 were sold for approximately $360,000. This is up approximately 3% from 2012.

Superstorm Sandy Impacts Homes on Long Island

The large number of homes on Long Island damaged by Superstorm Sandy has had a significant impact on the number of homes going into foreclosures. Many homeowners spent all of their savings bringing their homes back to liveable condition after Superstorm Sandy. However some of those homeowners overspent and fell behind on their mortgages while trying to rectify the problems caused by Superstorm Sandy to their homes.

Delinquency Rates on Long Island Are High

It is estimated approximately 10% of all mortgage loans on Long Island are more than 90 days past due. This is double the national average of 5% of mortgage loans which are 90 days past due.

Elliot Schlissel and his associates maintain one of the busiest foreclosure defense law firms in the Metropolitan New York area. Elliot has been interviewed on radio and in newspapers concerning foreclosure defense issues and is widely considered to be one of the best and well known foreclosure defense lawyers in the Metropolitan New York area.

Filed Under: Foreclosure, Foreclosure Defense Tagged With: financial crisis, foreclosure attorney, foreclosure defense, foreclosure proceedings, New York foreclosure attorney, New York Foreclosure Defense Attorney

Hidden Expenses When Buying A Home – Part II

February 13, 2014 by Elliot S. Schlissel

foreclosure defense attorney Renovations to the Home

It is usually necessary for new homeowners to do small to moderate renovations to their new home. Things such as painting, changing fixtures, modifying kitchens and bathrooms, can amount to tens of thousands of dollars very quickly. It usually costs homeowners anywhere from 1 to 2% of the purchase price of a home to do minor modifications or renovations to the home to make it more livable and/or suitable for their life.

New Appliances

So you have just bought your new home. When you look at your kitchen, do you really want all of the old appliances? If you are going to buy new appliances, this is the right time. However, appliances are not inexpensive. Purchasing new appliances or upgrading old appliances can run into thousands of dollars.

Termite Inspections

If your home is made of wood, you need to have a termite inspection. Termites have been around since the beginning of time. In many areas of the country, forests were originally cut down to make room for the development of communities. When they cut the forests down, the termites didn’t leave. They went into the ground and they feasted on the new homes that were built.

A large portion of the homes in the northeast of the United States during the course of their lifetime will be subject to termite infestation. Before purchasing a new home it is important you have a termite inspection to make sure your home is termite free. If termite damage exists, the termite damage should be repaired before you close on the purchase of your home. In addition to termites, there are other wood destroying insects that you need to be concerned with. Carpenter ants also can cause significant damage to homes. The cost of termite inspections and/or repairing the damage done by termites can be an unforeseen expense when purchasing a new home.

Escrow for Taxes and Insurance

When you close on a home, the bank will usually require you deposit a certain amount of money in escrow related to your annual tax and insurance payments. Banks require 1/12 payments each month to be made by the homeowner related to the hazard insurance costs on their property and the real estate and school taxes that are due on their property. At the time of closing, banks normally pick up at least one month’s taxes in advance and the balance of the month from the date of closing until the first date of the next month.

Elliot Schlissel and his associates are foreclosure defense lawyers. They litigate foreclosure lawsuits on behalf of homeowners and help them obtain mortgage modifications. Elliot and his associates have been helping homeowners keep their homes for more than 45 years.

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Modification Tagged With: costs of purchasing a home, foreclosure, mortgage modification, New York foreclosure attorney, real estate

Hidden Expenses When Buying A Home – Part I

February 10, 2014 by Elliot S. Schlissel

There is a common misunderstanding with regard to the total of all expenses new homeowners are exposed to when they purchase a home. Homeowners often believe all they have to do is put the down payment down, get the balance of the funds for the mortgage from a bank, and this will be sufficient to purchase a home. However there are numerous other expenses prospective homeowners face when purchasing a home.

Down Payment

I’ve already mentioned the down payment. In most real estate transactions, the homeowners puts 10% of the purchase price down at contract, and an additional 10% at the time of closing. This amounts to a total of 20% of the purchase price. If the homeowners are obtaining a Federal Housing Authority (FHA) mortgage, their down payment may be as little as 5% to 10% of the purchase price of the home.

Engineering Inspection

A home is the largest purchase a family will make during the course of their lifetime. Before jumping into the purchase of a home, it is usually necessary to have an engineer do a thorough inspection of the home to make sure the roof doesn’t leak, the electrical system is adequate, the plumbing doesn’t leak, the foundation is secure and numerous other items in the home are in good condition. Home inspections can cost anywhere from $500 to $600 in the Metropolitan New York area by qualified engineers.

Expenses of Moving

When a family moves into a home, they usually hire a moving company to help them pack up their possessions and move them to their new home. Moving expenses can cost a homeowner anywhere from $1,500 to $6,000. If the move is cross country, or over a long distance, it could cost significantly more.

Elliot Schlissel is a foreclosure attorney representing homeowners in the buying and selling of homes, and fighting foreclosures when banks seek to take their homes away from them. In addition, Elliot Schlissel and his attorneys assist homeowners in obtaining mortgage modifications and to avoid losing their homes in foreclosure proceedings.

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Modification Tagged With: costs of buying a home, foreclosure, foreclosure attorney, foreclosure defense attorneys, mortgage modifications, Mortgage Modifications attorney, New York foreclosure defense lawyers

Deficiency Judgments After Foreclosure

February 7, 2014 by Elliot S. Schlissel

Deficiency Judgments

A deficiency judgment can be taken against you when your property is sold at a foreclosure sale for less money than you owe on the mortgage. By example, if you owe on your mortgage $500,000 and your property sells in foreclosure for $300,000, the financial institution can take a deficiency judgment against you for the balance of the $200,000 that you owe. Lenders will go after deficiency judgments, generally speaking, if they feel you have an ability to pay the balance of the judgment off.

Deficiency judgments are not automatic. The attorneys for the foreclosing bank must engage in further legal action to obtain a deficiency judgment against you. In cases where the financial institution does not believe that you have the capability of paying a deficiency judgment, they generally won’t go after a deficiency judgment.

How To Avoid Deficiency Judgments?

There are a variety of ways of avoiding a deficiency judgment. One of these involves selling your home at a short sale and having the bank agree they will not go after you for any deficiency between the amount the property is sold for and how much you owe. The second route to avoiding a deficiency judgment is filing a bankruptcy.

Deficiency judgments are taken against you in New York State Courts. If you file a bankruptcy in the United States Bankruptcy Court, under federalism, the federal court that you file the bankruptcy in is a higher court than the New York State court. You can discharge any deficiency owed by you with regard to your mortgage by filing a Chapter 7 bankruptcy in a Federal Court. In addition to avoiding a deficiency judgment, you can also avoid credit card debts, personal loans and other financial obligations by filing a bankruptcy.

Foreclosure Lawyer

There are a specific set of laws dealing with deficiency judgments in foreclosure lawsuits. These statutes are complicated. Each and every foreclosure situation is a separate individual case with different facts and different circumstances. The purpose of this article is to educate you that deficiency judgments can occur. Should you have concerns about a deficiency judgment or other issues in foreclosure legal action, it is important you contact an experienced, knowledgeable foreclosure defense lawyer to represent you.

Filed Under: Foreclosure, Foreclosure Defense Tagged With: deficiency judgments, foreclosure defense, foreclosure defense attorneys, foreclosure defense lawyers, foreclosure proceedings, New York foreclosure attorney

Can’t Read or Write English? Not An Excuse in a Foreclosure Proceeding

February 3, 2014 by Elliot S. Schlissel

Justice Thomas Whelan, sitting in the Supreme Court of Suffolk County, was recently presented with a case involving a litigant who could not read or write in the English language, and also did not understand what was involved in the service of process in starting a foreclosure lawsuit against him. One West Bank brought a foreclosure proceeding against Navaro. They took this action because Navaro did not pay her mortgage obligations. Navaro brought an application to the court seeking to dismiss One West’s lawsuit against her. One West had moved for a default judgment within a year of the case being removed from the foreclosure conference mediation part. One West was able to establish even though they had delayed for approximately a year, they had a reasonable excuse for the delay and their claim in foreclosure was valid.

Ignorance of the Law – No Excuse

Navaro brought a cross motion. She sought to remove the default. She claimed a reason for failing to submit a written answer to the summons and complaint after being served was because she could not read and write in the English language. In addition, she claimed she did not understand her responsibility to submit a written answer to the summons and complaint served upon her in the foreclosure proceeding. The court denied Navaro’s cross motion. Justice Whelan held confusion or ignorance of the law and/or the legal process did not in and of itself constitute a reasonable excuse for failure to answer the summons and complaint or appear in court regarding the case. The court granted One West’s motion to obtain a default judgment and to appoint a receiver to compute the amount owed and subsequently thereafter sell the house.

Conclusion

If you get served with a summons and complaint and you are not sure what you need to do, hire a foreclosure defense lawyer. Ignorance of the law is not an excuse in a foreclosure proceeding.

Filed Under: Foreclosure, Foreclosure Defense Tagged With: foreclosure, foreclosure defense attorneys, foreclosure defense lawyers, New York foreclosure attorney, New York foreclosure defense lawyers

Foreclosures and the Rental Market on Homes

January 27, 2014 by Elliot S. Schlissel

foreclosure defense attorneys The large number of foreclosures due to the housing bubble in the United States has created an abundance of homes available for rental purposes. Approximately 20% of all single family homes are now rentals. The large number of single family homes being rented is related to the boom and bust of the recent real estate cycle. The significant number of homes sold in foreclosure proceedings have created an availability of homes for rental by families. In addition, millions of homeowners have lost their homes in foreclosure lawsuits. These families need a place to live. The availability of other homes that have been foreclosed on can be rented by them to meet their need for a place to live.

In addition to homes being foreclosed, homeowners who need cash flow are putting their homes on the market as rentals. They are even doing this during the foreclosure process. Since the foreclosure process in many states takes years, homeowners can literally move out of their home, charge rent to a tenant, and put the rental money in their pockets and not make their mortgage payments.

Rentals are Better than Vacant Homes

Officials in local areas have a preference for foreclosed homes to be rented instead of being left vacant. Vacant homes can be a blight on a neighborhood. They can invite trespassers and can be utilized by children for inappropriate purposes.

Although renting a home does provide a family with a place to live, it may not be their first choice. Their more likely first choice would be to stay in the home they had owned and not to have lost it in foreclosure.

Elliot S. Schlissel is a foreclosure defense lawyer representing homeowners, fighting financial institutions and banks to stay in their homes. Elliot and his associates have been protecting homeowners and keeping them in their homes for more than 45 years.

Filed Under: Foreclosure, Foreclosure Defense Tagged With: financial crisis, foreclosure, foreclosure attorney, foreclosure crisis, foreclosure defense, foreclosure defense attorneys

Under Water Homes on Long Island Rising!

January 24, 2014 by Elliot S. Schlissel

The number of homes that are under water on Long Island (where the owners owe more than the home’s value) are going down. Approximately 43,000 homes on Long Island are under water with regard to their mortgages. This amounts to about 8% of the homes on Long Island. This is down from 50,000 or 9 1/4% of the homes which were under water at the end of 2012.

Real Estate Values Increasing

Housing values have started to increase on Long Island. With the increase of housing values, more and more homes are developing equity greater than the value of the indebtedness on these homes. As a result of rising housing values, there have been fewer short sales on Long Island in 2013. A short sale is a transaction in which the home is sold for less than the amount owed on the mortgage. In addition to fewer short sales, there have been fewer sales in foreclosure proceedings in 2013 than there were in 2012 on Long Island. A smaller percentage of the homes on Long Island are under water when compared to homeowner rates on a national basis in the United States.

The increase in the value of homes on Long Island will have an affirmative economic effect which will create a rise in consumer confidence and result in economic growth in 2014. This is according to Anand Nallathambi, the President and CEO of Call Logic. Call Logic tracks information with regard to mortgages in the United States.

Conclusion

With fewer homes under water, financial institutions should be more reasonable in granting mortgage modifications. The rising value of homes gives banks greater equity incentive to grant mortgage modifications.

Elliot Schlissel is a foreclosure attorney. He represents homeowners whose homes are going into foreclosure and seek to maintain their homes. He assists homeowners in obtaining mortgage modifications. He has kept scores of Long Islanders who are facing foreclosure in their homes. Elliot is the former president of the Commercial Lawyers Conference of New York.

Filed Under: Foreclosure Tagged With: foreclosure attorney, foreclosure defense, mortgage modifications, New York foreclosure attorney

Beware of Mortgage/Foreclosure Fraud – Part I

Methods of Avoiding Foreclosure

Qualifying for a Mortgage

Foreclosures Hit Long Island Hard

Hidden Expenses When Buying A Home – Part II

Hidden Expenses When Buying A Home – Part I

Deficiency Judgments After Foreclosure

Can’t Read or Write English? Not An Excuse in a Foreclosure Proceeding

Foreclosures and the Rental Market on Homes

Under Water Homes on Long Island Rising!

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