Foreclosure Crisis: A Problem for President Obama & the Democrats

Posted by Elliot S. Schlissel, Esq.

The foreclosure crisis in the United States is now reaching the highest office of the land. President Obama is being backed into a corner, forced to protect the banking industry from allegations of fraud, misrepresentations, improper lending practices, defective foreclosure lawsuits and predatory lending issues.

Senior democrats have been calling for a moratorium on foreclosures in the United States. They seek to punish the banking industry for their improper actions.

Recently, Shaun Donovan, the Secretary of Housing and Urban Development, made the following statement: “irresponsible banks need to be held accountable, but if we have not found a problem with a bank’s process, we do not believe that we should impose a moratorium that can hurt the market and hurt the individual buyers.”

The Obama Administration has taken the position that if we hurt or damage the financial industry, in the long run, it is the public who feels the pain when the economy continues to erode.

The banking industry is arguing against the moratorium on foreclosures. They claim that the moratorium would have a long term negative effect on the economy in the United States. The Obama administration shares this concern. Recently, David Axelrod, a senior White House advisor, stated “There are in fact valid foreclosures that probably should go forward.” The Obama administration’s position is that people who don’t pay their mortgages should be held accountable in foreclosure proceedings. In the alternative, homeowner advocates claim there has been a pattern of abuse in the banking industry regarding foreclosures. The Obama administration wants to play this issue both ways. They are expressing concern for homeowners’ whose homes are in foreclosure, but they do not want to take any steps that may have a negative affect on the banking industry because they feel it will have long term negative economic impact in the United States.

Protecting Homeowners From Foreclosure

Our law firm assists homeowners in foreclosure defense. We handle mortgage modifications. We deal with defective foreclosure lawsuits and predatory lending issues. In appropriate situations, we utilize Chapter 7 and Chapter 13 bankruptcies to assist our clients in stopping foreclosure proceedings from moving forward. Call us for a free consultation at 1-800-344-6431, 516-561-6645 or 718-350-2802.

Problems With Foreclosure Affirmation Requirement

“Posted by Elliot S. Schlissel, Esq.”

Anne Reynolds Copps is the chairperson of the real property law section of the New York State Bar Association. On behalf of members in her section, she has filed objections to the Office of Court Administration regarding new requirements for attorney affirmations for foreclosure proceedings. She claims that the new affirmation requirements violates the attorney/client confidentiality privilege. She also feels that it unfairly blames New York attorneys for inappropriate practices that exist in other parts of the country.

The Office of Court Administration has recently made some minor changes requiring that attorneys must submit affirmations under penalty of perjury with regard to the truthfulness of documents that they file.
The letter Ms. Copps submitted to the Office of Court Administration questioned the preamble to the original affirmation which said “Numerous and wide spread insufficiencies in foreclosure filings in various courts around the nation.” Ms. Copps demanded that said preamble be removed. She further stated “Mandating the inclusion of this preamble in the affirmation creates an unfair and prejudicial connection between any attorney who submits the documentation and the unidentified attorneys around the nations who have allegedly committed this specific wrongs.”

The courts are now insisting that attorneys report their communications with lender representatives and attest to the best of their knowledge and belief that the statements made in all applications related to foreclosure proceedings in the State of New York be true and correct.

In a related note, Steven P. Younger, the president of the New York State Bar Association, stated that the State Bar has not rendered an official position with regard to the new requirements attorneys must meet with regard to all applications in foreclosure proceedings.

Foreclosure Defense Lawyers

The new requirements in foreclosure proceedings relate to the widespread practices that have existed in the United States in foreclosure cases. When appropriate, we counter sue the financial institution related to defective foreclosure lawsuits and predatory lending issues. We defend our clients from all types of foreclosure proceedings. We also help our clients obtain mortgage modifications. We also advise our clients as to whether Chapter 7 or Chapter 13 bankruptcies would be the appropriate way to eliminate the foreclosure and save their home. Should you have questions regarding foreclosure defense or bankruptcy, feel free to contact us 24/7 at 1-800-344-6431, 516-561-6645 or 718-350-2802.

Defenses to Foreclosure Proceedings

Until fairly recently, it has been difficult to submit defenses in foreclosure proceedings. However, new information that has recently surfaced and been made public with regard to banks and other financial institutions mishandling initial paperwork regarding the obtaining of mortgages, fraud on behalf of mortgage brokers and financial institutions, the loss of important documents regarding mortgages and the generally sloppy procedures utilized by financial institutions. The new information has opened up a new wave of defenses to foreclosure proceedings.

Challenge the Foreclosure Proceedings

Homeowners and their attorneys have taken a very aggressive stance in New York in challenging foreclosure proceedings. The following are a list of some of the common defenses used in foreclosure proceedings:

1. Unconscionability of the mortgage. Unconscionability basically indicates that the mortgage was simply unfair. The terms of the mortgage must be so unfair as to “shock the conscious” of the court. A homeowner’s inability to pay the mortgage does not, on its own, make it unconscionable.

2. The failure of the financial institution to follow the appropriate procedures in the foreclosure proceeding. New York State law lays out the obligations a financial institution has to its customers. The financial institution must prove all aspects of its case to the court. The loss of documents, the failure to maintain adequate records or the failure of an employee of the financial institution (who signs the affidavit regarding the case) to have sufficient knowledge of the case are defenses to foreclosure proceedings.

Action to be Taken by Homeowner

The best thing a homeowner should do if they receive notice of a pending foreclosure proceeding is to research what attorneys in their area handle foreclosure defense. The homeowner should then have an initial consultation with the attorney and discuss how the homeowner’s rights can be protected.

Foreclosure Conferences

In New York, after a foreclosure proceeding is initiated, there must be a foreclosure conference held with the court. In the event the homeowner has a pending mortgage modification application, the court will usually adjourn the case to see if the application is granted. If the homeowner’s attorney presents a very vigorous defense, pressure can be placed upon the financial institution to be more reasonable in the granting of the mortgage modification.

About Our Firm

For more than thirty years, our law office has represented individuals in lawsuits involving creditors. We handle foreclosure defense, mortgage modifications and bankruptcies throughout the New York metropolitan area. We have had a high degree of success in fighting off foreclosure lawsuits.

Should you have questions or problems concerning a foreclosure lawsuit, feel free to call us at 1-800-344-6431, 516-561-6645 or 718-350-2802.

Defense of Incompetency in Foreclosure Lawsuits

JP Morgan Chase sued Mr. & Mrs. Haedrich in a foreclosure proceeding in Nassau County, New York. Judge Phelan was the Supreme Court judge assigned to the case.

A guardian was appointed for the Haedrichs. The guardian moved to vacate judgments of foreclosure, as well as the mortgage and notes. The guardian alleged that Mr. & Mrs. Haedrich executed the mortgages and notes accompanying said mortgages in 1999, when they were incompetent. He claimed they suffered from a mentally debilitating condition, including dementia, which deprived them of their ability to make a reasoned intelligent decision concerning the execution of the note and mortgage.

Homeowners Competent to Enter Into Mortgage

The court held that the evidence presented did not sufficiently show that Mr. and Mrs. Haedrich were incompetent at the time of the execution of the mortgage and note. The court also held that the lender was not on notice and did not have any knowledge as to any aspect of their incapacity. The court held that the record did not present appropriate medical evidence showing the Haedrichs were rendered legally incompetent due to mental illness or for other reasons when they executed the necessary documents related to the note and mortgage at the real estate closing. The application by the guardian on behalf of the Haendrichs was dismissed.

About Our Firm

For more than thirty years, our law office has represented individuals in lawsuits involving creditors. We handle foreclosure defense proceedings throughout the New York Metropolitan area. We have a high degree of success in fighting off foreclosure lawsuits.

Should you or a loved one have questions or problems concerning a foreclosure lawsuit, please contact us at 1-800-344-6431 or 718-350-2802.

NY Courts Apply New Foreclosure Rules

Supreme Court Justice Meyer, sitting in Rockland County, New York, had an order of reference on a foreclosure action in the matter of City Mortgage Inc. v. McGee. Justice Meyer, upon reviewing the new administrative orders of the chief judge of the New York State Courts, took note that City Mortgage’s lawyer must file an affirmation in a form prescribed by the new administrative order.

The administrative order stated that attorneys for financial institutions involved in foreclosures must include in all such filings a mandatory affirmation that they have communicated with the financial institution’s representative. The representative must have advised them they have personally reviewed the documents and records relating to the case. The personal representative from the financial institution must also have confirmed the actual factual accuracy of the paperwork and filings. Furthermore, they also must confirm that the notarization of the documents submitted by the financial institution was proper and correct.

Justice Meyer stated that “the clear intent of the new rule was to assure accountability for and accuracy of all court filings in foreclosure actions”. The Judge’s position was that after October 20, 2010, the attorney for the financial institution must file an affirmation concerning all applications made at any and all stages of new and pending foreclosure proceedings. Justice Meyer didn’t believe the documentation submitted in this case complied with the administrative judge’s order. Justice Meyer took the position that if he discovers any wrongful filing or any wrongful prosecution of a foreclosure action, it may cause him to institute a disciplinary action and/or other sanctions against the attorney submitting these documents.

Justice Meyer’s position regarding the accuracy and truthfulness in foreclosure proceedings gives defense counsel a very important tool. Now the financial institutions and their attorneys are under the gun to see to it that they have all the correct paperwork before they can institute foreclosure proceedings.

Foreclosure Defense Attorneys

The foreclosure defense attorneys at the Law Offices of Schlissel DeCorpo have been representing homeowners in foreclosure proceedings for more than twenty years. Our office takes an aggressive stand in these proceedings. We often counter sue the financial institutions because of their failure to fulfill all of their responsibilities to comply with various statutes and regulations. Our office attends foreclosure conferences in court on behalf of our clients. We assist our clients in mortgage modifications. We discuss with our clients the problems concerning mortgage modification programs. We actively pursue foreclosure defenses for our clients. We also discuss with our clients defective foreclosure lawsuits and issues concerning predatory lending.

If your house is being foreclosed, we are the foreclosure defense attorneys for you. Call us at 1-800-344-6431, 516-561-6645 or 718-350-2802.

Justice Department and Attorney General Investigations

The Justice Department and the Attorney Generals in all 50 states are investigating fraud and improprieties of banks, mortgage companies and financial institutions related to foreclosure proceedings.There are approximately 33 million mortgages in the United States that could possibly be subject to litigation as to who is the appropriate owner of the mortgages, who made the transfers from one institution to another of these mortgages and who has personal knowledge of the information and facts maintained in these mortgages.

There are concerns that borrowers don’t know who they should be making their mortgage payments to.  The financial institutions are nervous that judges will stop foreclosures proceedings even where the borrowers aren’t making payments.  There are already cases where more than one bank has tried to foreclose on the same property.

Disruptions in the Housing Market

The foreclosure and mortgage crisis in the United States are causing significant disruptions in the housing market.  For the economy in the United States to turn around, for employers to start generating jobs for the unemployed and for the banking industry to stabilize, the foreclosure and mortgage crisis must be dealt with expeditiously.

Foreclosure Defense Attorneys

The foreclosure defense attorneys at the Law Offices of Schlissel DeCorpo have been representing homeowners in foreclosure proceedings for more than twenty years.  Our office takes an aggressive stand in these proceedings.  We often counter-sue the financial institutions because of their failure to fulfill all of their responsibilities to comply with various statutes and regulations.  Our office attends foreclosure conferences in court on behalf of our clients.  We assist our clients in mortgage modifications.  We discuss with our clients the problems concerning mortgage modification programs.  We actively pursue foreclosure defenses for our clients.  We also discuss with our clients defective foreclosure lawsuits and issues concerning predatory lending.

If your house is being foreclosed, we are the foreclosure defense attorneys for you.  Call us at 1-800-344-6431, 516-561-6645 or 718-350-2802.

Housing Crisis Has Nightmare Scenarios

Foreclosure DefenseThere is currently a national scandal involving the “robo-signing” of foreclosure documents by personnel of financial institutions. There is concern that the foreclosure predicament resulting from the mortgage crisis in this country may destabilize the American financial system.

The Troubled Asset Relief Program, more commonly referred to as TARP, was set up to deal with the bank crisis in the United States related to the banking industry over-extending itself concerning residential mortgages. The Congressional Oversight Panel is the watchdog agency designed to monitor the TARP program. Recently, the Congressional Oversight Panel has been issuing warnings that the problems involving the servicing of foreclosures in the United States could create global economic problems.

The Congressional Oversight Panel is concerned that banks may not be able to prove they own the mortgage loans that they seek to bring foreclosure proceedings on.

In recent months, foreclosure proceedings have actually gone down. This is not related to homeowners making their mortgage payments; it is instead related to lenders temporarily stopping their foreclosure proceedings due to allegations of mishandling and fraud in thousands of cases.

Homeowners being unable to make their mortgage payments and the huge volume of foreclosures in the United States are significant factors in preventing the United States from having an economic recovery. The foreclosure crisis relates to banks giving mortgages to hundreds of thousands of individuals who basically could not afford to make the payments on their mortgages.

About Our Law Firm

The Law Offices of Schlissel DeCorpo is a general practice law firm that has extensive experience in handling foreclosure defense. In addition to foreclosure defense, our office handles litigation concerning defective foreclosure lawsuits. We also assist our clients in Chapter 7 and Chapter 13 bankruptcies as well as preparing and submitting mortgage modifications> on their behalf. Should you have a problem, feel free to contact us. Our phones are answered 24 hours per day, 7 days per week. Our phone numbers are 1-800-344-6431, 516-561-6645 or 718-350-2802.

Alleged Mortgage Scams Target Seniors

The attorney general for the state of Texas has recently filed suit against Enhanced Mortgage Corporation and Templeton Mortgage Company.  The lawsuit claims the companies fraudulently targeted senior citizens and other individuals not experienced in real estate transactions.  The firms were accused of telling senior citizens who owned property that they would receive up-front cash for their land.  Unfortunately for the seniors, they were not paid the amount of money promised and the payments were not made on the time schedule as agreed.The Texas attorney general is requesting damages in the amount of $20,000.00 for each and every violation of the “Texas Deceptive Trade Practices Act”.  The Texas attorney general has stated that it is one of many mortgage scams in the United States.

The mortgage companies chose to use owner-financed mortgages in their scams.  These are mortgages that the buyer obtains directly from the former owner instead of going to a financial institution mortgage company or bank.

There are more than 75 lawsuits currently pending against Enhanced Mortgage Corporation and Templeton Mortgage Company.  The Texas Attorney General has advised property owners who believe they have been fraudulently scammed out of assets to call the office of the attorney general toll free at 1-800-252-8011 to file a complaint.  Complaints can also be filed against these mortgage companies online.

About Our Firm

For more than two decades, our office has been representing individuals concerning mortgage issues.  We help our clients obtain mortgage modifications.  When mortgages go bad, we represent our clients in foreclosure defense.  We represent our clients at foreclosure conferences.  We litigate defective foreclosure proceedings as well as predatory lending issues.  We help our clients stay in their homes!

Should you, a friend, or family member be subject to a foreclosure proceeding, call us.  We can save your home! Our phone numbers are 1-800-344-6431, 516-561-6645 or 718-350-2802.

Home Ownership Hits Lowest Level in a Decade

There is weak demand for purchasing homes in the United States.  At the same time, banks have taken a very conservative approach with regard to giving new mortgages to perspective home owners.  There are also record amounts of homes going into foreclosure in the United States.Currently, 66.9% of the households in the United States own their own home.  This is the lowest percentage of home ownerships in the United States in the last 10 years.

There are currently approximately 19 million homes, or 14.4% of all homes and apartments in the United States, that are unoccupied.  During the past five years, there has been a significant increase in the amount of homes that have remained unoccupied.

Foreclosure Crisis

The foreclosure crisis in the United States has significantly added to the number of homes that are either unoccupied, in foreclosure or have been taken over by the bank.  The real estate market in the United States is based on supply and demand.  There is currently a large supply of homes that people seek to sell or that have been taken over by banks in foreclosure situations.  The demand by individuals to purchase these homes is not in sync with the supply.  This causes a reduction in the prices of houses being sold.

About Our Law Firm

The Law Offices of Schlissel DeCorpo is a general practice law firm that has extensive experience in handling foreclosure defense.  In addition to foreclosure defense, our office handles litigation concerning defective foreclosure lawsuits.  We also assist our clients in Chapter 7 and Chapter 13 bankruptcies, as well as preparing and submitting mortgage modifications on their behalf.  Should you have a problem, feel free to contact us.  Our phones are answered 24 hours per day, 7 days per week.  Our phone numbers are 1-800-344-6431, 516-561-6645 or 718-350-2802, or contact us by email.

Foreclosure Papers Need To Be Verified By Attorneys

The Chief Judge of The State of New York , Judge Litman, has recently commented  about a new court rule. The court rule requires attorneys for financial institutions to file an affirmation that they have taken all reasonable steps to verify the accuracy of courts papers that they file in support of residential foreclosure proceedings.

This new court rule is an outgrowth of the problems concerning the accuracy of court documents in foreclosure proceedings in New York State. Chief Judge Jonathan Litman  said “we have an obligation to make sure the attorneys do their do diligence and come to us with credible papers because the consequences of wrongful foreclosures are so great”.

Verification Under Penalties Of Perjury

All future court papers in foreclosure proceedings have to be verified by attorneys
under penalties of perjury. The attorneys must make a diligent inquiry as to the accuracy and truthfulness of said documents. Attorneys must attest “to the best of my knowledge upon information and belief, the summons and complaint and all the documents filed in support of this action for foreclosure are complete and accurate in all relevant respects”.

The intent of this new statue is to deal with problems with regard to financial institution filing inaccurate or bogus notarized affidavits signed by “robo signers”. The courts seek to avoid the wrongful filing and prosecution of foreclosure proceedings.

Investigations are continuing in all 50 states and the District of Colombia with regard to whether the mortgage companies have violated state laws concerning the foreclosure proceedings.

Its hopeful that these new procedures set forth by the administrative judge will deal with some of the inaccuracies and false documents that have been that have been filed in the past in foreclosure proceedings in New York State.

About Our Firm

For more than 30 years our law firm has assisted individuals with mortgage modifications, foreclosure defense and lawsuits involving creditors. We have expertise in defending homeowners in foreclosure lawsuits. We have litigated cases involving predatory lending practices. We are also familiar with the issues involving failed mortgage modification programs. Should you, a friend or family  member be involved  in a foreclosure.  You need a foreclosure defense attorney to represent you.  Our experience in representing  individuals in all aspects of foreclosure defense including but not limited to foreclosure defenses and litigating foreclosure issues makes us one of the foremost foreclosure defense law firms in the metropolitan New York area. Feel free to call us for a free consultation at 516-561-6645, 718-350-2802 or 1-800-344-6431. We are available 7 days a week.

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

We represent individuals throughout the New York Metropolitan area with divorce and child custody, personal injury, car accident, wrongful death, estate administration, nursing home and medicaid issues

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.

This is attorney advertising. This website is designed for general information purposes only. The information presented on this website shall not be construed to be legal advice. If you have a legal problem you should consult with an attorney.

Copyright © 2018 By The Law Offices of Schlissel DeCorpo. All Rights Reserved. Concept, Design and Hosting by GetLegal Web Development Team.