In 2012, the number of short sales tripled compared to 2011. Short sales in 2012 were the most utilized method to avoid foreclosure sales of homes. In 2012, short sales accounted for 11% of all home sales. In a short sale, homeowners sell their property at a price less than what they owe the bank. In a short sale situation the homeowner applies to the bank for permission to do a short sale. The bank agrees to accept less than is due on the mortgage and forgive the homeowner for the balance of the mortgage.

Getting Short Sales Approved

A homeowner must apply to the bank and show the bank either there is an existing financial hardship or that the home cannot be sold for the amount that is due and owing to the bank to convince a bank to agree to a short sale. It should be noted banks prefer short sales instead of going through the long and detailed foreclosure process.

Under the National Mortgages Settlement Agreement between the government and the five largest mortgage lenders in the United States Banks, receive a credit when they approve the settlement of a short sale. The banks have received more than $19 billion in credit from the government from short sales in recent years.

Ten percent (10%) of all homes with mortgages on Long Island, New York are under water. This is an increase of three percent (3%) over the prior twelve (12) months. In the rest of the Country, the number of homes under water has been decreasing. Unfortunately, this is not the case on Long Island.

Superstorm Sandy

Superstorm Sandy, which hit Long Island on October 29, 2012, was a significant contributor to the rise in negative equity in homes on Long Island. It is estimated approximately 60,000 homes were damaged on Long Island by Superstorm Sandy. The impact of Superstorm Sandy on homes being under water on Long Island will continue to be felt when the ninety (90) day moratorium on mortgage payments expires.

Although the real estate market is improving in many areas of the United States it is not improving on Long Island.

About the Author

Elliot S. Schlissel, Esq. and his associates have been representing families throughout the metropolitan New York area for more than 45 years on issues concerning foreclosure, fraudulent mortgages, bad lending practices and other real estate related matters. The law firm offers free consultations to prospective clients.

There are tens of thousands of homes in the State of New York in foreclosure. Sometimes families feel the best way to deal with an impending foreclosure is to simply move out of their home and abandon it. This may not be a good idea!

Homeowners are discovering simply walking away from their home does not necessarily end their problems. Banks only have a mortgage on the home. The individuals living in the home are the homeowners. Sometimes families don’t quite understand this difference. This means even if you abandon your home, you are still responsible for maintaining the lawns, the sidewalks and possibly paying the real estate taxes on the home. If you are a member of a homeowners association you still owe the homeowners associations dues and fees.

Banks Are In The Money Business Not The Real Estate Business

In some local areas, there are large numbers of homes in foreclosure. If there are too many homes in a given area already in foreclosure, the financial institutions may be hesitant to take the property back. Banks do not want to maintain homes. Banks like to maintain money! Money requires no maintenance and single family homes can require significant amounts of maintenance. Money does not accrue real estate taxes. Single family homes require the payment of real estate taxes.

If the bank does not move forward with the foreclosure in a timely manner, the homeowner stays responsible for the home. Vagrants, drug dealers and third parties can move into the home. The home can become a nuisance and individuals around the area of the home can become injured. These injured individuals can sue the homeowner for financial damages.

Mistaken Belief The Homeowner Is Off The Hook

Homeowners initially move out of their homes because they feel they will be moving forward with their lives. That does not necessarily happen. The unpaid mortgage payments continually accrue negative information on the homeowners credit score. In some communities, the local community organizations are suing homeowners to have them maintain their homes, even after they move out. The local communities are taking this action because the homes are a blight on the neighborhood and are having a negative effect on the other homes in the area.

Conclusion

Before you move out of your home and abandon it, you should consult with an attorney that handles foreclosures cases.

About The Author

Elliot S. Schlissel, Esq. and his dedicated group of attorneys handle foreclosure defense in the metropolitan New York area. In addition, we litigate issues concerning fraudulent mortgages, violation of truth in lending laws and bad bank practices related to mortgages and foreclosures.

Justice Laura Jacobson, sitting in the Foreclosure Supreme Court Part in Kings County (Brooklyn), recently dismissed a foreclosure lawsuit because the financial institution that brought the lawsuit did not have standing to sue. Saxon Mortgage Services brought a foreclosure action against the homeowner. Saxon did not own the note. The note had been sold to Morgan Stanley in 2007. Morgan Stanley entered into an agreement with Saxon Mortgages Services to have them handle the servicing of the note. However the defendant (the homeowner) never received notification of the transaction between Saxon and Morgan Stanley. At the time the lawsuit was initiated Saxon it was not the owner of the note and mortgage. Their position was they were bringing the action as a servicing agent for Morgan Stanley.

Judge Jacobson in her decision stated, “the summons and complaint in foreclosure did not provided the basis for which Saxon brought the foreclosure proceeding. Saxon in its pleadings did not properly set forth its status as a processing agent.” The homeowner did not know who the principal and owner of the note was during the entire course of the proceeding. As a result, Justice Jacobson granted an application by the defendant to have the foreclosure action dismissed do to Saxon’s lack of standing.

Standing To Sue

If your home is being foreclosed on by an institution that was not the original institution who made the loan, you should consult with our Law Office as to whether they have standing to sue! If they don’t have standing to bring the foreclosure lawsuit, we can have the case dismissed.

There has been a recent settlement for $8.5 billion between 10 banks and Federal regulators. The settlement relates to fraudulent practices the banks were involved in regarding the foreclosure crisis that exists in the United States.

Holding Banks Accountable

Banks, to maximize their profitability, use many shortcuts. Robosigners, who knew nothing about the documents they were signing, signed hundreds of foreclosure authorizations.

Of the $8.5 billion the banks are coughing up, $3.3 billion will go towards people’s homes who are being foreclosed on. This will amount to approximately $1,100 for each foreclosed home. Individuals who were improperly denied mortgage modifications could receive as much as $50,000.

Who Will Receive These Funds

Who will receive these funds is the big question. There is no procedure for indemnifying the individuals and families who were damaged when they lost their homes. The families whose lives have been ruined may never receive any portion of this settlement.

So what does this settlement really accomplish for the Obama administration? A public relations gesture to try and convince the public he is actually doing something to deal with the crisis. The reality is the individuals who made millions of dollars scamming homeowners are keeping their illegal gains and suffer no prosecution.

Foreclosure Defense Lawyers

The Law Offices of Schlissel DeCorpo is one of the largest foreclosure defense firms on the East Coast of the United States representing individuals concerning fraudulent mortgages, mortgage modifications and helping keep families in their homes.