Proposed Law Protects Homeowners Who Have Mortgages

Homeowners Who Have MortgagesThere is currently a bill in the New York State Legislature to protect homeowner. The statute states that a bank or other financial institution cannot commence a foreclosure proceeding unless they have an original mortgage document. This means that a prerequisite for the financial institution to commence a foreclosure proceeding will be that it must allege and prove ownership of the note and the mortgage. These documents also must be filed by the bank, with the Summons and Complaint, when the foreclosure action is initiated.

Illegal Foreclosure Proceedings

There has been a series of cases in the past few years where banks who are not the mortgage holders have illegally foreclosed on homes and sold them at auction. This new law will codify the rulings of court cases that have held that institutions must have standing to initiate mortgage foreclosure proceedings.

When a homeowner receives the Summons and Complaint in foreclosure, they are usually frightened. Since homeowners are not lawyers and are generally not familiar with this area of the law, they do not know what their rights are. If a homeowner is sued by a bank that doesn’t own his or her mortgage, they have a right to claim that the bank doesn’t have standing to sue them. Unfortunately, if the homeowner doesn’t submit a written answer alleging lack of standing, this defense to the lawsuit is waived.

This new statute helps homeowners by making the homeowner’s defense that the bank has lack of standing to bring the foreclosure lawsuit non-waivable. This gives the homeowner a complete defense to the lawsuit. It also allows counsel for the homeowner to use this defense as a tactic in defending the foreclosure lawsuit.

Stopping Foreclosure

Foreclosures can be stopped in a number of ways. The filing of an Answer on behalf of the homeowner stops the foreclosure case from going forward. There are specific defenses that can be alleged in the answers, such as predatory lending, the mortgage was defective, the foreclosure lawsuit is defective, and other real estate related defenses. Another foreclosure defense option is to file a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. The filing of either of these bankruptcies gives the homeowner an automatic stay that immediately stops the foreclosure lawsuit from going forward.

Many homeowners are under the false belief that filing for a mortgage modification stops a foreclosure from going forward. This is incorrect! The mortgage modification process has nothing to do with the litigation in the courts of foreclosures. Most mortgage modification programs fail to provide the homeowners with the relief they are seeking. The large majority of homeowners are denied mortgage modifications! Feel free to call us for a free consultation regarding foreclosure defense and bankruptcy matters. Thank you for visiting our foreclosure blog.

Bank Attorney is Punished for Failing to Appear

On November 18, 2010, Justice Pagones, sitting in the Supreme Court located in Dutchess County, rendered a decision in the matter of BAC Home Loans Servicing vs. Westervelt. In this case, the bank and the homeowner were directed to appear at a settlement conference. Settlement conferences are required under New York State law in all foreclosure proceedings. The bank’s attorney failed to appear at the settlement conference. At that time, the court could have dismissed the bank’s foreclosure proceeding. In this case, the court declined to impose this remedy.

Justice Pagones, however, found that the bank attorney’s explanation for his failure to appear at the court settlement conference was inadequate. The court thereafter scheduled a hearing to determine what sanctions would be taken against the bank’s attorneys.

Bad Faith

Justice Pagones reached a conclusion that the attorneys for the bank had acted in bad faith in negotiating a settlement with the defendant. The defendant had made representation that the bank had, without explanation, refused to re-examine her income with regard to the mortgage modification she submitted. The court pointed out that the financial institution under the HAMP directives had an obligation to review her income.

Bank Barred From Collecting Arrears and Interest

The court scheduled another court conference date. In the interim, the court ordered the bank stop collecting arrears from the date the homeowner received the HAMP denial. The court also barred the financial institution from collecting any interest that might accrue from this date. The court also waived unpaid late fees and ordered the bank to waive attorney’s fees relating to this case.

Foreclosure Court Conferences

Foreclosure court conferences exist because the State Legislature passed a law in 2010 ordering the financial institution to attend foreclosure court conferences for the purpose of finding alternatives to the foreclosure proceedings. Our law office regularly attends foreclosure conferences on behalf of our clients. We utilize these conferences to try to motivate the attorneys for the financial institutions to work with our clients towards approving mortgage modifications that take the cases out of foreclosure.

Foreclosure Lawyers

The foreclosure defense attorneys at our law office aggressively litigate issues involving defective mortgages, defective foreclosure lawsuits, predatory lending, bad faith and other real estate related matters. When appropriate, we file foreclosure related bankruptcies, including either a Chapter 7 bankruptcy or Chapter 13 bankruptcy, depending on the circumstances involved with our clients. These bankruptcies stop foreclosure and, in some cases, allow us to eliminate second mortgages. Prior to filing bankruptcies, we discuss the types of bankruptcies that are appropriate with regard to our client’s specific situation. Call us for a free consultation. We will discuss all foreclosure options available to you. Our phone numbers are 516-561-6645, 718-350-2802 and 1-800-344-6431.

Foreclosures Represent 12.5% of all Real Estate Sales on Long Island

Real Estate Sales On Long IslandIn 2009, there were 2,836 foreclosure sales of homes on Long Island. This represented 10.7% of all sales of single-family homes on Long Island. In 2010, there were 2,571 homes sold related to foreclosure proceedings on Long Island. Even though the number of homes sold in foreclosure was less in 2010 than the prior year, the percentage of real estate transactions on Long Island related to foreclosure sales grew in 2010.

Foreclosure Home Sales Dominate the Real Estate Market in the U.S.

In 2010, 25% of all home sales throughout the United States were the result of foreclosure proceedings. It is anticipated that the percentage of home sales related to foreclosure proceedings will increase in the year 2011. It is expected that foreclosure sales will increase in 2011 because lenders are getting their act together with regard to providing their attorneys with the appropriate paper work to facilitate foreclosure proceedings through the courts.

John Fitzgerald, a real estate broker in Hauppauge, New York, whose business focuses on foreclosure transactions, stated that he has been told by lenders in New York to “get ready because there are properties coming” with regard to increased foreclosure activity on Long Island.

Foreclosure Defense on Long Island and the Five Boroughs of NYC

Should you find your house in foreclosure, we can help you. We’ll assist you in obtaining a mortgage modification. If you don’t qualify for a mortgage modification and you are sued in a foreclosure proceeding, we can represent you in court.

We will see to it that your rights are protected. We are experienced in dealing with mortgage modification programs that fail to provide the homeowner with the promised relief. We maintain a foreclosure blog to educate our clients and the general public with regard to the foreclosure crisis in the United States.

When foreclosure ensues, we attend foreclosure court conferences on behalf of our clients. We litigate defective foreclosure lawsuits, predatory lending issues, bad faith on behalf of financial institutions and defective mortgages.

Our law office has been handling real estate litigation for more than three decades. Should a Chapter 7 or Chapter 13 bankruptcy be appropriate to deal with your financial situation, we will discuss this issue with you and assist you in filing bankruptcy, if necessary. The filing of bankruptcy will stop foreclosure proceedings from moving forward and in some situations eliminate the security interest created by second mortgages. We can also assist you in reestablishing your credit after you have been discharged in bankruptcy.

Feel free to call us at your earliest convenience at 516-561-6645, 718-350-2802 or 1-800-344-6431. Our phones are monitored 24/7.

Foreclosure Rates Dip In November 2010

November 2010 marked the lowest level of foreclosure activity in the United States in the past eighteen months! This is not an indication that the economy is coming back, or that people are earning more money and homeowners are making their mortgage payments. The significance of lower foreclosure rates is most likely caused by a number of the largest banks in the country freezing their foreclosure process due to the fact that they are being investigated by attorney generals in all fifty states. The investigations concern the improper handling of foreclosure proceedings.

In the month of November 2010, 67,428 homes were taken back by lenders. This is the lowest rate since May 2009; however, as of the end of November, 980,000 homes in the United States have been lost in foreclosure sales. This is the largest amount of homes being taken in foreclosure since 2005.

Rick Shark, a senior vice president at Realty Tarc stated “It’s almost impossible to imagine we won’t break a million” (referring to foreclosed homes this year). He further stated, “Unfortunately, it’s a record that we’ll probably break next year.” Had there not been a problem with improper foreclosure procedures, it was likely that banks would have taken back 1.2 million homes in 2010.

Due to the problems seen in the courts and the investigations by attorney generals in all fifty states, banks temporarily ceased taking legal action against their borrowers who were behind on their mortgage payments. Some banks thereafter indicated they would proceed with the foreclosure process, but there are still a number of large banks who are not moving forward with foreclosures at this time.

Foreclosure Problems to Continue in 2011

Many of the factors that have been involved in this foreclosure crisis will still exist in 2011. High unemployment, falling home values and difficulty in obtaining new mortgages are several of the factors that are contributing to the current mortgage crisis.

It is estimated that almost 11 million homes, or 22.5%, of all homes that have a mortgage, were under water for the July through September quarter of 2010. This is according to housing data by the firm CoreLogic.

During November 2010, 262,339 homes received at least one foreclosure notice. Utah is now the number two state in foreclosures on a per-capita basis in the United States. It is estimated that 1 out of every 220 households in Utah received a foreclosure notice in November 2010. This is more than twice the average in the United States. Other states with very high foreclosure rates are California, Arizona, Florida, Georgia, Michigan, Idaho, Illinois and Colorado. The foreclosure rate in New York is high, but not as high as some of the aforementioned harder hit states.

Foreclosure Defense Lawyers

If you’re behind in your mortgage or have been turned down for a mortgage modification, you need to think about foreclosure defense. The foreclosure defense lawyers at The Law Offices of Schlissel DeCorpo have been assisting their clients in dealing with foreclosure problems for more than 45 years. We also help our clients with mortgage modifications. We represent our clients in court appearances and foreclosure conferences in court. We stop the foreclosure from going forward!

We deal with defective foreclosure lawsuits, bad faith bank practices and predatory lending issues. If you have a foreclosure problem, call us at 1-800-344-6431, 516-561-6645 or 718-350-2802. We can help you!

NY Courts Apply New Foreclosure Rules

Supreme Court Justice Meyer, sitting in Rockland County, New York, had an order of reference on a foreclosure action in the matter of City Mortgage Inc. v. McGee. Justice Meyer, upon reviewing the new administrative orders of the chief judge of the New York State Courts, took note that City Mortgage’s lawyer must file an affirmation in a form prescribed by the new administrative order.

The administrative order stated that attorneys for financial institutions involved in foreclosures must include in all such filings a mandatory affirmation that they have communicated with the financial institution’s representative. The representative must have advised them they have personally reviewed the documents and records relating to the case. The personal representative from the financial institution must also have confirmed the actual factual accuracy of the paperwork and filings. Furthermore, they also must confirm that the notarization of the documents submitted by the financial institution was proper and correct.

Justice Meyer stated that “the clear intent of the new rule was to assure accountability for and accuracy of all court filings in foreclosure actions”. The Judge’s position was that after October 20, 2010, the attorney for the financial institution must file an affirmation concerning all applications made at any and all stages of new and pending foreclosure proceedings. Justice Meyer didn’t believe the documentation submitted in this case complied with the administrative judge’s order. Justice Meyer took the position that if he discovers any wrongful filing or any wrongful prosecution of a foreclosure action, it may cause him to institute a disciplinary action and/or other sanctions against the attorney submitting these documents.

Justice Meyer’s position regarding the accuracy and truthfulness in foreclosure proceedings gives defense counsel a very important tool. Now the financial institutions and their attorneys are under the gun to see to it that they have all the correct paperwork before they can institute foreclosure proceedings.

Foreclosure Defense Attorneys

The foreclosure defense attorneys at the Law Offices of Schlissel DeCorpo have been representing homeowners in foreclosure proceedings for more than 45 years. Our office takes an aggressive stand in these proceedings. We often counter sue the financial institutions because of their failure to fulfill all of their responsibilities to comply with various statutes and regulations. Our office attends foreclosure conferences in court on behalf of our clients. We assist our clients in mortgage modifications. We discuss with our clients the problems concerning mortgage modification programs. We actively pursue foreclosure defenses for our clients. We also discuss with our clients defective foreclosure lawsuits and issues concerning predatory lending.

If your house is being foreclosed, we are the foreclosure defense attorneys for you. Call us at 1-800-344-6431, 516-561-6645 or 718-350-2802.

Justice Department and Attorney General Investigations

The Justice Department and the Attorney Generals in all 50 states are investigating fraud and improprieties of banks, mortgage companies and financial institutions related to foreclosure proceedings.There are approximately 33 million mortgages in the United States that could possibly be subject to litigation as to who is the appropriate owner of the mortgages, who made the transfers from one institution to another of these mortgages and who has personal knowledge of the information and facts maintained in these mortgages.

There are concerns that borrowers don’t know who they should be making their mortgage payments to.  The financial institutions are nervous that judges will stop foreclosures proceedings even where the borrowers aren’t making payments.  There are already cases where more than one bank has tried to foreclose on the same property.

Disruptions in the Housing Market

The foreclosure and mortgage crisis in the United States are causing significant disruptions in the housing market.  For the economy in the United States to turn around, for employers to start generating jobs for the unemployed and for the banking industry to stabilize, the foreclosure and mortgage crisis must be dealt with expeditiously.

Foreclosure Defense Attorneys

The foreclosure defense attorneys at the Law Offices of Schlissel DeCorpo have been representing homeowners in foreclosure proceedings for more than 45 years.  Our office takes an aggressive stand in these proceedings.  We often counter-sue the financial institutions because of their failure to fulfill all of their responsibilities to comply with various statutes and regulations.  Our office attends foreclosure conferences in court on behalf of our clients.  We assist our clients in mortgage modifications.  We discuss with our clients the problems concerning mortgage modification programs.  We actively pursue foreclosure defenses for our clients.  We also discuss with our clients defective foreclosure lawsuits and issues concerning predatory lending.

If your house is being foreclosed, we are the foreclosure defense attorneys for you.  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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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.

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