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Home Modification Problems in California (Part 1): Lawyers who Assist Homeowners in Mortgage Modifications Are Now Out of Reach

Mortgage Modifications Are Now Out Of ReachThe Ridiculous Law in California

The State of California has more active foreclosure cases than any other state in the country. Homeowners in California who seek mortgage modifications have had difficulties for the past few years. Today, they have a new difficulty – they can no longer hire lawyers!

Lawyers throughout the State of California are now being forced to reject clients who come to them for the purpose of obtaining mortgage modification loans. This is because California has passed a unique, unusual and restrictive statute. The new law states that attorneys who work on mortgage modification loans can receive no payment until the loan is approved. Under the new statute, clients cannot even put retainer payments in attorney trust accounts.

This California statute is unlike any other statute in the country. The intent of the California statute is for “fly-by-night” loan modification businesses run by non lawyers to be eliminated from the marketplace. Unfortunately, there has been a fallout from this new statute. The unintended consequence of the new law is that honest, hard-working, well-known, well-established attorneys with excellent credentials can no longer represent individuals in dealing with financial institutions’ complicated and burdensome paperwork related to loan modifications.

avoidNew York Foreclosure Defense Lawyers

In the state of New York, there are no restrictions regarding the hiring of foreclosure defense attorneys. For more than 20 years, the Law Offices of Schlissel DeCorpo has been at the forefront of defending consumers and homeowners regarding litigation with financial institutions. We have developed an expertise in defending foreclosure lawsuits. Upon meeting with our attorneys, we will analyze the paperwork related to your case. We will discuss foreclosure defenses, mortgage modifications and the potential of using bankruptcy filings to assist you. We will provide you with a detailed explanation as to the foreclosure process, the mortgage modification process and how bankruptcies affect homeowners. If you are in trouble with your lender, or behind on your mortgage, call us. We can help you! Our phone numbers are 1-800-344-6431, 516-561-6645 and 718-350-2082.

Long Island Foreclosure Crisis

Long Island Foreclosure CrisisIn 2010, Long Island was a hot bed of foreclosure activity. As a result of the foreclosed homes on the market, there is now an inventory of approximately three years of homes that need to be sold. Simply stated, if no new homes came on to the market to be sold on Long Island for a period of three years, considering the current amount of real estate sales, it would take this period to eliminate the backlog of homes in foreclosure already on the market to be sold.The only place in the United States that has more foreclosed homes on the real estate market is Miami, Florida. In November of 2010 there were 893 new foreclosure cases started in Nassau and Suffolk Counties on Long Island.
The Home Affordable Modification Program (“HAMP”) that was created by the Federal Government to prevent home foreclosures will only assist 800,000 homeowners. When it’s taken into consideration that there are approximately four million foreclosure situations in the United States, less than one in four distressed homeowners will be receiving assistance.

Flawed Mortgage Foreclosure Programs

The current mortgage foreclosure programs rely on the financial institutions to agree to voluntarily reduce the homeowner’s monthly payments to an affordable level. The banks have not been cooperative in this endeavor. Instead of reducing the mortgage payment amount for homeowners, in more than 75% of the cases, the banks put the homes into foreclosure. When the banks take this action, they accelerate the mortgage, refuse to accept future mortgage payments, take the home back and put the house back into an overburdened real estate market.

New York Foreclosure Defense AttorneyNew York Foreclosure Defense Attorney

Our office defends foreclosure cases in New York. We currently have dozens of successful foreclosure cases pending in Nassau and Suffolk Counties on Long Island, as well as in Westchester, Brooklyn and Queens Counties.

Our office represents our clients regarding mortgage modifications. We are experienced with regard to the problems mortgage modification programs have. We maintain a foreclosure blog to help educate our clients regarding the numerous issues concerning the current foreclosure crisis. If our clients are sued, we represent them in the foreclosure litigation. We attend foreclosure conferences on their behalf. We litigate defective foreclosure lawsuits, predatory lending practices, and failed mortgages. If you have a mortgage modification or foreclosure problem, we are the attorneys for you!

Blame the Banks, Not the Homeowners, for the Mortgage Crisis (PART 2)

Fraudulent Mortgage Applications

Banks were aware that the applications that had been submitted to them by individuals seeking mortgages were fraudulent.  Instead of operating an appropriate underwriting process that provided due diligence to see to it that the consumer’s requesting mortgage loans could actually make payments on these loans, the banks simply stopped underwriting the loans in any reasonable manner.  The failure of the banks to properly underwrite the loans is one of the principal reasons for the mortgage bubble in America.

Income-to-debt Ratio

The banks have been aware for decades that there is an income-to-debt ratio a perspective homeowner must meet to be able to afford to make mortgage payments.  Loan officers, mortgage brokers, real estate agents and appraisers were involved in the submission of fraudulent documents where the loan-to-debt ratio was of such a nature that the perspective homeowner could never successfully make the mortgage payments.

Servicing Companies Who Would Rather Foreclose than Modify Mortgages

The servicing companies hired by financial institutions to service mortgages were supposed to provide the consumer with a simple, reasonable mortgage modification process.  Instead, incompetent under-financed mortgage modification programs were set up.  The financial institutions continuously ask the consumers to send and resend the same documents.  The communication level between the mortgage servicing companies and the consumer is almost non-existent.  Consumers became more and more frustrated in trying to communicate with individuals at the serving companies who knew nothing about their pending mortgage applications.  Instead of appropriately processing mortgage modifications for creditworthy individuals, these individuals have been turned down for their mortgage modifications.

Twenty Years of Representing New Yorkers in Foreclosure Defense Lawsuits

Our law firm is currently handling dozens of foreclosure defense cases throughout the Metropolitan New York area.  We help our clients obtain mortgage modifications.  We prevent banks from forcing our clients out of their homes.  We attend court foreclosure conferences, litigate defective foreclosure lawsuits, predatory lending, bad faith and other improper practices by financial institutions.

Should you need help, we are the law in the Metropolitan New York area with an extremely high success rate in our foreclosure defense cases.  Call us at 1-800-344-6431, 516-561-6645 or 718-350-2802.

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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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

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