The Note and The Mortgage

foreclosure and real estate lawyer in New YorkIf you have purchased a home and financed it through a financial institution, you attended a closing. At that closing, you executed numerous documents. One of those documents is the note. The note is simply an I owe you. The note basically states you are borrowing money from a lender and you promise to pay it back. The note includes the terms of repayment, interest rates, the term of the loan and information concerning late charges and other issues.

The Mortgage

The mortgage and note are two separate documents completely. The mortgage is an agreement which allows the financial institution, who is the lender concerning your property, to have a security interest, or lien, on your property. Another way of looking at the mortgage is you pledge your home as collateral to secure the financial transaction which allows you to buy your home. If the bank does not get paid, they go after the collateral, to wit, your home, to take it back and sell it at auction to repay the note which documents the loan you took from them.

New York foreclosure defense attorney IslandElliot S. Schlissel is a foreclosure lawyer. He has helped hundreds of New Yorkers stay in their homes. He fights foreclosure lawsuits throughout the Metropolitan New York area and helps his clients obtain mortgage modifications. Elliot and his staff of attorneys can be reached 7 days a week.

Bankruptcy And Foreclosure

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Elliot S. Schlissel is a foreclosure attorney who has been helping homeowners stay in their homes for more than 20 years.  He defends his clients in foreclosure lawsuits, helps his clients obtain mortgage modifications, and when appropriate, represents them in bankruptcy proceedings.  He and his associates can be reached for consultation at 516-561-6645, 718-350-2802 or by email to schlissel.law@att.net.

Judgment of Sale Vacated in a Foreclosure Action

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Elliot S. Schlissel is a foreclosure defense attorney.  He can be reached for consultation at 516-561-6645 or 718-350-2802.

Foreclosure and Reverse Mortgages

real estate and elder care attorneysThe purpose of a reverse mortgage is to allow seniors who have homes with substantial equity to pull the equity out of their home and still be able to reside in the home for the rest of their lifetime without making mortgage payments. The difference between a reverse mortgage and a traditional conventional mortgage is the individual taking out the loan under a reverse mortgage does not have to make monthly mortgage payments. The lender only gets paid when the mortgagor dies, or in the event of the sale of the home prior to the mortgagor’s death.

No Personal Obligation to Pay a Reverse Mortgage

There is no personal obligation on the mortgagor to make payments with a reverse mortgage like there is in a traditional mortgage. The only method the financial institution has to collect under a reverse mortgage is from the sale of the home. The lender is therefore exposed to not being capable of having its loan repaid should the market conditions reduce the value of the home or the home be in poor condition. However, the lender can obtain insurance from HUD to protect it from the risk of the home not being worth the amount of the loan plus interest.

Underwriting Reverse Mortgages

The loans are underwritten by financial institutions based on a number of factors. The older the mortgagor is, the more money can be obtained in the mortgage. This takes into consideration the fact that the older the mortgagor is, the smaller his or her life expectancy will be. The shorter life expectancy allows the loan to become due and payable earlier in time.

In the event there are co-mortgagors on the loan, the loan is not called due until the second of the two mortgagors dies.

Problems with Reverse Mortgages

In recent years, when homes were owned by husbands and wives and one of the spouses was older than the other, the banks would convince the younger spouse to deed his or her share of the property to the older spouse. This action was taken so the underwriter would allow a larger amount of money to be borrowed in the mortgage based on the shorter life expectancy of the older spouse. The younger spouses were assured in the event the older spouse dies, they would be allowed to continue to reside in the house. Unfortunately, that is not what happened! When the older spouse, the mortgagor, died the surviving spouse was notified by the financial institutions the reverse mortgage was due and payable because the surviving spouse was not a party to the mortgage loan. Since the surviving spouse was also a senior, and had limited cash flow in most situations, he or she was unable to make the mortgage payments and therefore the house would end up in foreclosure.

HUD has recently dealt with this issue.

New HUD Policy

With regard to all reverse mortgages that are given by financial institutions after August 4, 2014, the new rule requires the non-borrowing spouse who had been married to the borrowing spouse (mortgagor), at the time of the closing, will be afforded protection by this rule and the financial institutions will not be permitted to bring foreclosure lawsuits against the surviving spouse or request payment of the mortgage upon the death of the spouse who was on the mortgage. The financial institution will not be entitled to bring a foreclosure proceeding until the surviving spouse also dies. It should be noted this rule only applies to parties who were actually married at the time the mortgage was taken out. In the event a reverse mortgage is taken out and then the mortgagor marries, that surviving spouse would not be included under this new rule and would need to either pay off the mortgage or have the house subject to being foreclosed upon.assisting homeowners

Home Sales Rise 4% in May 2013

foreclosure defense lawyersIn May of 2013, home sales rose 4.2% in the United States. This on an annualized rate would amount to 5.2 million home sales in the United States for the year 2013. The last year when there were more than 5 million home sales of occupied homes in the Unites States was 2009. It should be noted during 2009 there was a home buying tax credit which inflated the number of homes sold. The median price of homes sold in 2013 so far is $208,000.

Strong Housing Market

Jim O’Sullivan, the Chief United States economist at High Frequency Economics, recently stated “housing is now the strongest part of the economy in growth terms.”

Foreclosed Homes

The number of homes taken in foreclosure in the United States by financial institutions is decreasing. However, homes foreclosed on by banks still represent a larger portion of the homes being sold on the market than existed prior to the real estate and mortgage crisis. Prospective purchasers are buying homes they feel are priced to sell.

About The Author

Elliot S. Schlissel, Esq. is a foreclosure lawyer. He and his staff of attorneys represent families whose homes are in foreclosure and are seeking mortgage modifications. Elliot’s motto is “I can keep you in your home!”helping homeowners stay in their homes

Banks To Review Their Own Foreclosures For Refunds To Consumers

mortgage modification attorneysRegulators in Washington have requested financial institutions, subject to the recent settlement between the Federal Government and all fifty states, for improper mortgage and foreclosure practices, be required to review all of their foreclosures to determine which consumers are to receive funds pursuant to this settlement. Banks are supposed to review their own files to determine where errors were made. They’re supposed to target their most needy customers and provide these needy homeowners with financial aid related to the settlement of the lawsuits brought by the governmental entities against them.

Foreclosure Review

Initially, the Office of the Control of the Currency had required foreclosure review by independent consultants. However, this foreclosure review did not work out. The reviewers were inefficient and there were numerous delays related to these reviews. Instead, Federal Regulators are requiring banks to review their own records to determine which of their abused homeowners are to receive the 3.6 million dollars in payments from them. The Comptroller of the Currency felt the elimination of the middlemen consultants would speed up the payments to the abused homeowners.

Suspicion Of Further Abuse

Many homeowners are concerned. They feel having the banks, who created these problems, review their own records is a foolish attempt to deal with the rightful grievances of the homeowners who have been put into foreclosure due to improper, illegal and fraudulent bank practices.

The New Plan

Banks are supposed to be reviewing their loan files. They are supposed to determine whether mistakes were made in processing the loans, whether the foreclosures were illegal and whether improper action was taken by the bank employees. The banks are supposed to make a list rating the level of abuse. After this is done, regulators will make the decision as to how much money to pay in each category of abused borrowers. The bigger the errors, the larger the payout. Regulators believe this will be the most equitable way to divide the money among the homeowners.

Conflicts Of Interest

This system seems to me to be analogous to having criminals decide their own penalties. Isaac Simon Hodes, an organizer with the community group, Lynn United For Change, recently stated, “the whole process has been a slap in the face to homeowners and a slap on the wrist to banks.” He also stated “the latest development shows how there has been no accountability” for the banks.

Under this program, Bank of America is to distribute 1.1 billion dollars to its homeowners. Wells Fargo Bank is supposed to distribute $700 million dollars to homeowners.

Conclusion

The banks are still getting away with murder!

About The Author

homeowner advocatesElliot S. Schlissel and his dedicated group of attorneys represent homeowners cornering foreclosure defense legal proceedings and mortgage modifications. Elliot S. Schlissel has been involved in helping homeowners deal with financial institutions for more than 3 decades. For the first 15 years of his career, he was a creditor’s attorney representing the financial institutions. He helped them collect funds from debtors. Elliot S. Schlissel and his dedicated attorneys are one of the largest foreclosure defense law firms in the metropolitan New York area. They help homeowners deal with fraudulent mortgages, improper bank practices, robo-signing issues and violations of truth in lending laws.

New Rules Protect Homeowners From Foreclosure

foreclosure assistance for homeownersThe Consumer Financial Protection Bureau, on January 17, 2012, established new protective procedures related to homeowners whose homes are going into foreclosure. These new rules further regulate the conduct of mortgage servicing organizations.

The purpose of the new rules, according to Richard Corday, the director of the Consumer Financial Protection Bureau, are to ensure a fair treatment for all borrowers. In addition, these rules intend to establish further protection for those individuals trying to save their homes. The intent of these new regulations is to only allow mortgages to be made to prospective homeowners who have the capability of a repaying these loans.

Missing Mortgage Payments

If the homeowner misses two consecutive mortgage payments, going forward, the mortgage servicing organization will have to provided the homeowner with information about alternatives to foreclosure

Loan Modifications

If the homeowner submits a loan modification the financial institution will no longer be able to initiate a foreclosure proceeding until all aspects of the processing of the mortgage modification are completed. Banks will no longer be able to bring foreclosure proceedings unless the loan is a more than four months behind.

Even in the event a home is scheduled to be sold in foreclosure, the homeowner can still submit a mortgage modification application as long as it is 37 days prior to the sale of the home. This will also force the foreclosing financial institution to stop the foreclosure sale from going forward until the mortgage modification is fully processed and it is dealt with. It should be noted, customer service processing organizations that service less than 5000 mortgages are exempt from some of the new rules.assisting homeowners

Why You Can’t Buy A House

foreclosure defense for Long Island homeownersHome prices have fallen. Homes have become more affordable to purchase. Interest rates are at record lows. It is an excellent time to buy a home. Do you want to purchase a home? There are reasons why you may not be able to. Here are some of those reasons:

1. Your debt to income ratio is at or above 40%. Debt to income ratio (DTI) is the amount of your monthly expenses to maintain where you live plus other recurring monthly debt divided by your total monthly income. Most mortgage loan programs require your DTI be at or below 40%. Here is how you determine whether a house you are looking at is affordable. First calculate your DTI. Then calculate your proposed mortgage payments and add your minimum monthly debt obligations. Then divide this by the total amount of your gross monthly income. To calculate your maximum mortgage payment multiply gross monthly income times 0.40 (DTI) minus all minimum monthly debt obligations.

2. You work for yourself and the schedule C of your income tax return shows losses. Many individuals who are self-employed owned companies that showed tax losses at the end of the year. These income tax returns have a schedule C. If the schedule C does not show a profit, financial institutions will be hesitant to loan you money.

3. You have significant deposits at a bank but you can’t document where this money came from. In other words, one way or another you’re making cash and there is no paper trail for it. Banks do not like this!

4. The down payment on your home is a gift. If the down payment on your home is a gift from a parent, friend, relative or other individual it will be necessary for you to document this gift on an affidavit from the person who gave it to you. Banks are very skittish about gifts from anonymous individuals!

5. The home has termites. If the home has termites or other pests, it is necessary that this condition is dealt with and all structural damage to the home rectified before a financial institution will loan you money on the home.

6. You seek to purchase a home you simply can’t afford. When buying a home you should have realistic expectations. If you are making $50,000 a year, you can’t afford a home that costs $400,000 or $500,000. Buyers often go to real estate brokers who show them homes they fall in love with but they can’t afford to purchase. If you are a prospective home purchaser, you must to do an analysis of what you can afford and make compromises on what you really want and what is within your budget.

About The Author

assisting homeownersElliot S Schlissel, Esq. is an attorney with more than 35 years of legal experience. His law office represents clients regarding foreclosures defense issues, defective mortgages, foreclosure actions and all types of predatory lending issues.

Twenty Five Million Dollar Mortgage Settlement

The Federal Government has recently settled for 25 million dollars with Bank of America, Wells Fargo, JP Morgan Chase, Citigroup, and Ally Financial with regard to pending litigation concerning their improper activities regarding mortgages.

The cases were initially started in 2010.  Banks were initially found of guilty of signing off on foreclosures without appropriately reviewing them.  The scandal uncovered what has been referred to as robosigning.  Robosigning is where bank officials sign documents without reading them.  Sometimes as many as hundreds of these documents within a day.

Banks Broke The Law

The banks involved in the robosigning scandal broke the law.  As a result of their improper activity thousand of homeowners were evicted from their homes for invalid or nonexistent documentation.

Who Receives the 25 Million?

The exact details with regard to the settlement have not been worked out. However, it is anticipated the money will be allocated as follows:

1.         1.5 billion dollars in cash payments will go to approximately 750,000 qualified homeowners who lost their homes in foreclosure between 2008 and 2011.  This works out to about $2000 per homeowner.

2.         Banks will agree to 17 billion dollars in principle reductions concerning homeowners who have homes that are underwater and are either at risk of default or currently in default on their mortgages.

3.         3 billion dollars will be allocated to homeowners who are currently paying high mortgage raters or have adjustable mortgages.  The adjustable mortgages can be reset to very low interest rates.

4.         The balance of the settlement funds will be utilized for consumer protection programs and to establish reforms with regard to the bank servicing agency.

It is estimated that it will take between eight and ten months to set up a methodology of distributing the funds and establishing who the homeowners are that would have to be compensated.  The settlement will be thereafter put into effect for a period of 36 months.

Federal officials have suggested that the total amount of funds paid by the financial institutions will end up being as high as 39 billion dollars.

This Is Not Enough

Paul Dales, a housing economist recently stated “you are hardly skimming the surface.  It could help some people a lot, individually. But in terms of the big picture, overall economy and housing market, it is really just a drop in the ocean of the problem.  Only the five banks mentioned have agreed to this settlement, while mortgages funded by Fannie Mae and Freddie Mac are exempt.  This cuts more than half of the homeowners from eligibility right off the bat.”

Punishment for Banks

Experts feel that the 25 billion dollars being paid by the financial institutions will not have a significant impact on dealing with the housing crisis in the United States.  While the plan may be flawed, it is a start in the right direction!

Stopping Foreclosure By Filing Bankruptcy

Foreclosure related bankruptcy filing is one of the possible options in dealing with foreclosure problems.  Individuals and spouses can file either Chapter 7 or a Chapter 13 bankruptcies.  The filing of the bankruptcy immediately stops foreclosures from moving forward, stops debt collection practices and stops creditor harassment.  In some circumstances the filing of bankruptcy can eliminate second mortgages.  Call us and we can discuss the types of bankruptcy that are available to you and why filing bankruptcy may be in your interest and other foreclosure defense related options.

Attorneys Who Defend Foreclosures In New York

The Long Island foreclosure defense lawyers at The Law Offices of Schlissel DeCorpo have for more than two decades been representing the families in the courts of Nassau and Suffolk Counties.  The firm helps clients obtain mortgage modifications.  The firm also prepares forensic audits on behalf of clients.  If a foreclosure action is started, the firm submits written answers alleging defenses such as predatory lending, defective foreclosure lawsuits and defective mortgages.  The firm’s attorneys appear in court for settlement conferenceand pressure the financial institutions to give their clients mortgage modifications.

Foreclosure related bankruptcies are another option to deal with foreclosure lawsuits.  Either the filing of a Chapter 7 or a Chapter 13 bankruptcy will bring a foreclosure proceeding to a halt.  Either of these bankruptcies can be utilized to stop foreclosures, stop debt collection, and stop creditor harassment.  Contact the firm for a free consultation.

Mortgage Services Agree to 25 Billion Dollar Settlement For Their Improper Activities Regarding Mortgages

Seven Hundred and Fifty Thousand Americans who lost their homes in foreclosures between 2008 and 2011 will be able to qualify for up to $2000 in reimbursement from a settlement worked out with large financial institutions.

New York Attorney General Eric Schneiderman

New York Attorney General Eric Schneiderman played a key role in working out the settlement with the large financial institutions. However this settlement doesn’t excuse criminal activity on behalf of the mortgage services. Schneiderman has stated that he will keep pursuing his investigation with regard to mortgage abuses.

Schneiderman said “there are huge tax fraud implications to some of the stuff involving mortgages that we went on.” The large financial institutions involved in the settlement are Bank of America, JP Morgan Chase, Wells Fargo, Citigroup and Ally Financial Services.

Too Little Too Late

The $2000 dollars being paid to people who lost their homes is much too little and it is being paid much too late. Schneiderman stated that the settlement is just a down payment. He intends on pursuing interest and further penalties on the financial servicing companies.

Long Island Foreclosure Lawyers

The Long Island foreclosure defense lawyers at The Law Offices of Schlissel DeCorpo have for more than two decades been representing the families in the courts of Nassau and Suffolk Counties. The firm helps clients obtainmortgage modifications. The firm also prepares forensic audits on behalf of clients. If a foreclosure action is started, the firm submits written answers alleging defenses such as predatory lending, defective foreclosure lawsuits and defective mortgages. The firm’s attorneys appear in court for settlement conferenceand pressure the financial institutions to give their clients mortgage modifications.

Foreclosure related bankruptcies are another option to deal with foreclosure lawsuits. Either the filing of a Chapter 7 or a Chapter 13 bankruptcy will bring a foreclosure proceeding to a halt. Either of these bankruptcies can be utilized to stop foreclosures, stop debt collection, and stop creditor harassment. Contact the firm for a free consultation.

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

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