A family’s home is usually their single largest asset. Homeowners whose homes are taken back by the financial institution usually have their credit negatively impacted upon. This often will prevent them from being able to purchase another home in the near future. This means the former homeowners will be living in apartments for a considerable period of time.
FORECLOSURE DEFENSES
There are many different potential defenses to a foreclosure lawsuit. There are consumer protection laws, there are law’s regulating financial institutions. There are both federal, state, and local rules which financial institutions need to follow and many other statutory and case law defenses which have been developed over the years.
The legal process involving filing documents with the court and making effective legal arguments is quite complicated. The financial institutions hire very experienced foreclosure attorneys who have usually handled thousands of these types of cases. This gives the financial institutions, which have unlimited funds to hire lawyers, a distinct advantage if a homeowner seeks to represent themselves.
Individuals who are in the military are subject to additional rights and protections to avoid losing their homes in foreclosure.
LOAN MODIFICATIONS
A homeowner can apply on their own for a loan modification. However, loan modifications brought under the supervision of a judge can put pressure on the financial institution to be more reasonable with the homeowner.
BANKRUPTCY
Filing either a Chapter 7 or Chapter 13 bankruptcy in the United States Bankruptcy Court is another alternative which should can be taken into consideration by a homeowner. Whether to litigate in the state court in New York or in the federal court involves questions concerning financial circumstances, the homeowner’s ability to make payments, the current financial situation of the homeowner, the quality of their employment, and various other issues.
The law office of Schlissel DeCorpo have been defending homeowners regarding mortgage issues for more than three decades. They can be reached at 516-561-6645, 718-350-2802, 631-319-8262 and 914-998-0080 or emailed at Elliot@sdnylaw.com.
