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Foreclosure Case Dismissed: Bank Does Not Obtain Personal Jurisdiction Over The Defendant

March 20, 2014 by

foreclosure defense attorneyJustice Frances Francois Rivera sitting in a Supreme Court Part in Kings County recently had a case involving JP Morgan Chase Bank and a Mr. Birica. JP Morgan Chase Bank had started a foreclosure lawsuit in Kings County. The lawsuit claimed that Mr. Birica was the owner of the property involved in the foreclosure. It further stated in the Summons and Complaint he was also the individual who executed the personal loan documents and mortgage documents with regard to the property. The attorneys for JP Morgan Chase took the position Mr. Birica had defaulted on his payments with regard to the mortgage.

Vacating the Default Judgment

Mr. Birica brought an application to vacate the default and he submitted a Notice of Appearance and Verified Answer to the Complaint in the foreclosure lawsuit brought by JP Morgan Chase. In addition, he brought an application to dismiss JP Morgan Chase’s Complaint based on the theory that Chase lacked legal standing to bring the lawsuit and they had failed to properly serve the Summons and Complaint in the foreclosure proceeding on her.

The attorneys for Birica submitted a motion to the court which claimed she did not receive a copy of the Summons and Complaint in a timely manner. She therefore was unable to answer it. She claimed she resided in Rye, New York and the Summons and Complaint was served to an address in Queens, New York. The attorneys for Chase presented documentation that their process server had served Birica at an address in Rego Park by delivering a copy of the Summons and Complaint to her daughter and by thereafter mailing a copy to the address in Rego Park.

Judge Francois Rivera in ruling on the applications made by the attorneys for Birica found JP Morgan Chase did not meet its burden of proof establishing the Summons and Complaint in the foreclosure proceeding were properly delivered or mailed to Ms. Birica’s dwelling. He therefore dismissed the foreclosure lawsuit.

Conclusion

Financial institutions are held to a very high standard with regard to obtaining personal jurisdiction of individuals in foreclosure lawsuits.

assisting homeownersElliot S. Schlissel is a foreclosure defense attorney with more than 45 years of legal experience. His office has helped scores of families in the Metropolitan New York area stay in their homes. Elliot has previously been the President of the Commercial Lawyers Conference of New York, a creditors Bar Association, and he has extensive experience in litigating foreclosure defense cases and helping his clients obtain mortgage modifications.

Filed Under: Foreclosure, Foreclosure Defense Tagged With: , , , ,

Foreclosure Fraud – Part II

March 18, 2014 by

foreclosure defense lawyersRent to Buy Scams

A common foreclosure scam involves individuals approaching a homeowner whose home is in foreclosure and offering to have them refinance the home at a much lower interest rate. Unfortunately, the way this scam works is the homeowner is presented with documents that involve the transfer of the deed from the homeowner to the alleged foreclosure counseling company. The homeowner eventually finds out that he or she does not own their home and is now renting their home from the alleged foreclosure counseling company. Eventually the counseling company brings an eviction proceeding to evict the homeowner from their home and they thereafter try to sell the property or bring another rent paying tenant into the property.

The rent to buy scams also sometimes involve the tricking of the homeowner into signing documents that are presented to be applications for a home loan. However these applications actually are documents utilized to transfer the title of the property. Homeowners should be especially wary of signing any type of blank forms. In this type of scam the scammer presents a blank form to the homeowner and says “don’t worry we will fill it out and work with the bank to obtain a lower interest loan.” When the form is eventually filled out it turns out to be a document transferring title to the house.

Hire Attorneys Experienced in Defending
Homeowners In Foreclosure Lawsuits

The best way to ensure you are not being scammed and that your rights are being protected is to hire an attorney with a significant background in real estate and foreclosure defense matters to represent you with regard to foreclosure related issues concerning your home. When you hire a qualified attorney, you should request that you receive copies of all documents and paperwork in your file to make sure that the attorney is doing all that is necessary to protect your rights and interests.

homeowner advocatesElliot Schlissel is an attorney with more than 45 years of experience representing clients in real estate related legal matters. Elliot and his team of attorneys have one of the busiest foreclosure defense law firms in the Metropolitan New York area. Elliot helps his clients stay in their homes, obtain mortgage modifications and take all other necessary actions to avoid losing their homes in foreclosure.

Filed Under: Foreclosure, Foreclosure Defense Tagged With: , , , , ,

Foreclosures Hit Long Island Hard

February 18, 2014 by

foreclosure defense attorneyThe foreclosure crisis on Long Island is much more serious than in the rest of the country. On a national basis, approximately 2% of all homes were in foreclosure during the month of January 2014. However, on Long Island, 6.3% of all homes were in foreclosure. That is three times the national average.

Long Island real estate has not recovered as fast as the rest of the nation for a variety of reasons. The court rules concerning foreclosures are designed to protect homeowners. However, the legal protection afforded homeowners impacts on the length of a foreclosure process through the courts in New York. During the 2013 calendar year, 663 homes were sold at auction in foreclosure on Long Island.

Rising Home Prices

Home prices have been rising on Long Island. The rising home prices allows more homes to be sold quickly and should have an impact on reducing the number of homes in foreclosure. The average home price, excluding homes on the east end of Long Island, during the last quarter of 2013 were sold for approximately $360,000. This is up approximately 3% from 2012.

Superstorm Sandy Impacts Homes on Long Island

The large number of homes on Long Island damaged by Superstorm Sandy has had a significant impact on the number of homes going into foreclosures. Many homeowners spent all of their savings bringing their homes back to liveable condition after Superstorm Sandy. However some of those homeowners overspent and fell behind on their mortgages while trying to rectify the problems caused by Superstorm Sandy to their homes.

Delinquency Rates on Long Island Are High

It is estimated approximately 10% of all mortgage loans on Long Island are more than 90 days past due. This is double the national average of 5% of mortgage loans which are 90 days past due.

assisting homeownersElliot Schlissel and his associates maintain one of the busiest foreclosure defense law firms in the Metropolitan New York area. Elliot has been interviewed on radio and in newspapers concerning foreclosure defense issues and is widely considered to be one of the best and well known foreclosure defense lawyers in the Metropolitan New York area.

Filed Under: Foreclosure, Foreclosure Defense Tagged With: , , , , ,

Hidden Expenses When Buying A Home – Part I

February 10, 2014 by

There is a common misunderstanding with regard to the total of all expenses new homeowners are exposed to when they purchase a home. Homeowners often believe all they have to do is put the down payment down, get the balance of the funds for the mortgage from a bank, and this will be sufficient to purchase a home. However there are numerous other expenses prospective homeowners face when purchasing a home.

Down Payment

I’ve already mentioned the down payment. In most real estate transactions, the homeowners puts 10% of the purchase price down at contract, and an additional 10% at the time of closing. This amounts to a total of 20% of the purchase price. If the homeowners are obtaining a Federal Housing Authority (FHA) mortgage, their down payment may be as little as 5% to 10% of the purchase price of the home.

Engineering Inspection

A home is the largest purchase a family will make during the course of their lifetime. Before jumping into the purchase of a home, it is usually necessary to have an engineer do a thorough inspection of the home to make sure the roof doesn’t leak, the electrical system is adequate, the plumbing doesn’t leak, the foundation is secure and numerous other items in the home are in good condition. Home inspections can cost anywhere from $500 to $600 in the Metropolitan New York area by qualified engineers.

Expenses of Moving

When a family moves into a home, they usually hire a moving company to help them pack up their possessions and move them to their new home. Moving expenses can cost a homeowner anywhere from $1,500 to $6,000. If the move is cross country, or over a long distance, it could cost significantly more.

foreclosure advocate for homeownersElliot Schlissel is a foreclosure attorney representing homeowners in the buying and selling of homes, and fighting foreclosures when banks seek to take their homes away from them. In addition, Elliot Schlissel and his attorneys assist homeowners in obtaining mortgage modifications and to avoid losing their homes in foreclosure proceedings.

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Modification Tagged With: , , , , , ,

Foreclosures and the Rental Market on Homes

January 27, 2014 by

foreclosure defense attorneysThe large number of foreclosures due to the housing bubble in the United States has created an abundance of homes available for rental purposes. Approximately 20% of all single family homes are now rentals. The large number of single family homes being rented is related to the boom and bust of the recent real estate cycle. The significant number of homes sold in foreclosure proceedings have created an availability of homes for rental by families. In addition, millions of homeowners have lost their homes in foreclosure lawsuits. These families need a place to live. The availability of other homes that have been foreclosed on can be rented by them to meet their need for a place to live.

In addition to homes being foreclosed, homeowners who need cash flow are putting their homes on the market as rentals. They are even doing this during the foreclosure process. Since the foreclosure process in many states takes years, homeowners can literally move out of their home, charge rent to a tenant, and put the rental money in their pockets and not make their mortgage payments.

Rentals are Better than Vacant Homes

Officials in local areas have a preference for foreclosed homes to be rented instead of being left vacant. Vacant homes can be a blight on a neighborhood. They can invite trespassers and can be utilized by children for inappropriate purposes.

Although renting a home does provide a family with a place to live, it may not be their first choice. Their more likely first choice would be to stay in the home they had owned and not to have lost it in foreclosure.

assisting homeownersElliot S. Schlissel is a foreclosure defense lawyer representing homeowners, fighting financial institutions and banks to stay in their homes. Elliot and his associates have been protecting homeowners and keeping them in their homes for more than 45 years.

Filed Under: Foreclosure, Foreclosure Defense Tagged With: , , , , ,

Under Water Homes on Long Island Rising!

January 24, 2014 by

mortgage modification attorneysThe number of homes that are under water on Long Island (where the owners owe more than the home’s value) are going down. Approximately 43,000 homes on Long Island are under water with regard to their mortgages. This amounts to about 8% of the homes on Long Island. This is down from 50,000 or 9 1/4% of the homes which were under water at the end of 2012.

Real Estate Values Increasing

Housing values have started to increase on Long Island. With the increase of housing values, more and more homes are developing equity greater than the value of the indebtedness on these homes. As a result of rising housing values, there have been fewer short sales on Long Island in 2013. A short sale is a transaction in which the home is sold for less than the amount owed on the mortgage. In addition to fewer short sales, there have been fewer sales in foreclosure proceedings in 2013 than there were in 2012 on Long Island. A smaller percentage of the homes on Long Island are under water when compared to homeowner rates on a national basis in the United States.

The increase in the value of homes on Long Island will have an affirmative economic effect which will create a rise in consumer confidence and result in economic growth in 2014. This is according to Anand Nallathambi, the President and CEO of Call Logic. Call Logic tracks information with regard to mortgages in the United States.

Conclusion

With fewer homes under water, financial institutions should be more reasonable in granting mortgage modifications. The rising value of homes gives banks greater equity incentive to grant mortgage modifications.

homeowner advocatesElliot Schlissel is a foreclosure attorney. He represents homeowners whose homes are going into foreclosure and seek to maintain their homes. He assists homeowners in obtaining mortgage modifications. He has kept scores of Long Islanders who are facing foreclosure in their homes. Elliot is the former president of the Commercial Lawyers Conference of New York.

Filed Under: Foreclosure Tagged With: , , ,

Negotiations with Bank Does Not Stop Foreclosure Lawsuit

January 14, 2014 by

foreclosure defense attorneysA foreclosure lawsuit was brought by Citi Mortgage against Vatash. Vatash submitted an answer with affirmative defenses to the summons and complaint served by Citi Mortgage. Citi Mortgage moved for summary judgment. In their application they sought to dismiss the answer brought by Vatash. Vatash claimed, in his answer, Citibank lacked standing to bring this foreclosure action. He also claimed Citibank’s motion was inappropriate because he was involved in discussions with Citi Mortgage concerning a loan modification. He took the position since loan modification discussions were ongoing, Citibank had no right to move forward with the foreclosure case.

Standing Argument Dismissed

Justice Thomas Whelan sitting in a Supreme Court Part in Suffolk County, ruled Vatash’s argument that Citi Mortgage didn’t have standing was procedurally defective. The ruling was based on the allegation that Vatash failed to assert lack of standing in his answer or in a pre-answer motion to dismiss. In addition, the court took the position the argument even if it had been submitted appropriately in the answer, was substantively without merit. The court held Citi Mortgage was the owner and holder of the note and mortgage upon its merger with the original financial institution which made the loan.

The court ruled in favor of Citi Mortgage’s application for summary judgment (an application to grant a judgment without the need for a trial because there are no issues of fact). The court took the position the opposition papers submitted by Vatash did not create an issue of fact or an adequate defense.

Negotiations Do Not Stop Foreclosure Cases from Moving Forward

The Court specifically held the fact that Vatash was engaged in negotiations and/or discussions with Citi Mortgage is not a defense to the foreclosure lawsuit. Citi Mortgage’s motion for summary judgment was granted.

Conclusion

There are a number of important issues which were dealt with in this case. To start with, a lack of standing argument must be plead in the answer to the Summons and Complaint. Secondly, discussions with a bank concerning mortgage modifications or other ways of resolving the case have no impact on the foreclosure lawsuit moving forward.

helping homeowners stay in their homesElliot Schlissel is a foreclosure defense lawyer. His office has represented homeowners for more than 45 years on mortgage foreclosure lawsuits throughout the Metropolitan New York area.

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Modification Tagged With: , , , , , , ,

Foreclosure Court Conference Denied

January 9, 2014 by

foreclosure defense lawyerIn a case of first impression, Justice Cohen sitting in the Appellate Division, Second Department (an appeals court) recently wrote a decision that stated a residential foreclosure lawsuit which was caused by a default on a commercial loan is not entitled to participate in the mandatory settlement court conference program. Justice Cohen stated in his decision “while it is unfortunate that here a primary residence may be lost in foreclosure not everyone under every circumstance is entitled to reap the protections afforded to victims of the mortgage crisis by the New York State Legislature.”

History of the Case

Roz Valt Corp. took out a loan from Independence Bank in December 2006. It borrowed $230,000. The purpose of the loan was to provide funds to enable the corporation to acquire various types of equipment, to pay construction costs and to be utilized as funds to set up a “Quiznos” submarine shop in Brooklyn.

The president of Roz Valt Corporation was Roslyn Valentine. She was personally liable for the payment of the loan. In addition, she executed a collateral mortgage to Independence Bank for $230,000. This was a second mortgage on her home in Queens County. Unfortunately, Roz didn’t make the payments under the loan. Independence Bank brought a foreclosure action on the second mortgage on her home. In her pleadings, Ms. Valentine argued she was entitled to the mandatory settlement court conference pursuant to New York Civil Practice and Law Rule Section 3408.

Court of Appeals Ruling

The New York Court of Appeals ruled New York Civil Practice Law and Rule Section 3408 applies to settlement conferences for “any residential foreclosure action involving a home loan.” Judge Cohen agreed with Ms. Valentine’s argument that the settlement court conferences were designed to help homeowners avoid their homes being taken from them in foreclosure. However, he also found, in this case, she was not entitled to a foreclosure settlement court conference. He took this position because this case involved a commercial loan. The loan was made to Roz Valt Corporation which was not a natural person. The money loaned was not utilized for housing purposes. He also found Ms. Valentine was a guarantor of the loan not the borrower.

Conclusion

Unfortunately, Judge Cohen’s decision may cause Ms. Valentine to lose her home.homeowner advocates

Filed Under: Foreclosure, Foreclosure Defense Tagged With: , , , , , ,

Home Buyers Misconceptions

January 7, 2014 by

foreclosure defense lawyerBuying a home is a complicated undertaking. First home buyers usually rely on discussions with friends and relatives as to what action they should take, what they should do, what they should be aware of, and how real estate transactions are conducted. The lay of the land on home purchases has changed. The mortgage bubble that resulted in the real estate crisis in America has changed some of the ground rules.

Real Estate Brokers Are Not Always Necessary

Real estate brokers provide a valued service to both buyers and sellers. They are very well paid for their services. However, homeowners can sell their homes without a real estate broker. This is especially true if someone is available to show the home during evenings and weekends. A homeowner can advertise the home for sale in local newspapers and/or on the internet, meet and greet the prospective purchasers, and hire an attorney to represent them on the real estate transaction. If the homeowner does not have the time, the patience, or the availability, hiring a real estate broker to represent them may be a necessity. Websites such as www.zillow.com and www.redfin.com can be utilized by a homeowner who seeks to avoid paying the commissions related to listing a home with a real estate broker. Many home buyers today utilize the internet to look at the material on these websites to find the home of their dreams.

Hidden Costs of Owning a Home

The average homeowner, when looking to purchase a home, takes into consideration the mortgage and sometime the taxes on the property. In addition to the mortgage and taxes, homes require heat in the winter and they may require air conditioning in the summer. The fuel oil to heat the home and the electricity to air condition the home can be expensive. Depending on the climate of the area where the home is located, these expenses can amount to between $5,000 and $10,000 per year. Even if the home does not need air conditioning, the electricity to run the appliances, computers, and keep the lights on can be very expensive. The grounds of the home need to be maintained. The homeowner has to maintain his lawn and shrubs and the rest of his property or hire a gardener to do so. The exterior of the home needs to be kept in good condition. Painting needs to be done on a periodic basis and/or the home needs to be sided. Roofs can leak, boilers can break, pipes can leak, electrical issues can develop. These are all potential expenses a homeowner may face.

Down Payment Policies

A 20% down payment is not always needed to obtain a mortgage. If the prospective homeowner is looking to obtain a conventional mortgage from a financial institution, a 20% down payment may be necessary. However, under Federal Housing Authority (FHA) programs, much less is required as a down payment. In some situations, as little as 5% or 10% of the cost of the home is sufficient as a down payment. Programs are available from the Veterans Administration for veterans who can finance a home with a very low down payment.

foreclosure advocate for homeownersElliot S. Schlissel, Esq. has been representing clients in real estate transactions for more than 45 years. His office represents homeowners in buying and selling of homes, defending them against foreclosures, and helping them obtain mortgage modifications when they fall behind on their mortgages.

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Modification Tagged With: , , , , ,

Foreclosure Dismissed – Citibank Has No Standing

January 3, 2014 by

foreclosure defense lawyersIn a case before Justice Lizbeth Gonzalez, in the Supreme Court of Bronx County, the judge dismissed a foreclosure lawsuit brought by Citibank.

Citibank had filed a foreclosure proceeding against a homeowner named McCray. They had taken this action on behalf of a Bears Stearns Alt-A Trust. McCray brought a motion requesting the foreclosure lawsuit be dismissed. He argued Citibank had lacked standing to bring the lawsuit. Citibank claimed it had standing to bring the lawsuit because it was the holder of the original note.

Holder or Assignee of the Note and Mortgage

Judge Gonzalez in her decision stated a foreclosing party in a foreclosure lawsuit has standing when they are both the holder or assignee of the mortgage and underlying note at the time the action is commenced.

Citibank’s attorneys had argued they were the holder of the note. However, their legal submissions did not state they also were the holder of the mortgage.

Motion to Dismiss Case Granted

Judge Gonzalez found that there was no proof submitted by Citibank they were the holder of both the mortgage and the note at the time of the initiation of the lawsuit. The court therefore granted McCray’s motion to dismiss. Judge Gonzalez found that Citibank did not submit adequate proof it had the right to the debt in the absence of documentation of chain of custody and proof the mortgage and notes were lawfully assigned and held by it prior to commencing the lawsuit. Since Citibank did not establish and meet the requirements they had standing to bring the foreclosure lawsuit, Judge Gonzalez held that they did not have standing to foreclose and their foreclosure lawsuit was dismissed.

Conclusion

Before a financial institution can bring a foreclosure lawsuit they must be able to prove that they are the holder of both the note and mortgage. In addition, they must show that the mortgage has been rightfully assigned to them and the assignment was properly filed. The documentation of the assignment, the possession of both the note and the mortgage, should be attached to the summons and complaint in the foreclosure legal action. If the financial institution does not do this, the court should dismiss the case for lack of standing.

assistance for homeownersElliot S. Schlissel is a foreclosure defense attorney. His office has helped homeowners in scores of cases fight foreclosures and remain in their homes.

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Modification Tagged With: , , , , , , ,

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Disclaimer: 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.