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Elliot S. Schlissel is a foreclosure attorney. He and his associates have been helping homeowners stay in their homes for more than 45 years. He also helps his clients obtain mortgage modifications. Elliot can be reached for consultation at 516-561-6645, 718-350-2802 or by email to schlissel.law@att.net.
Please click on the link below to watch today’s video blog:
Elliot S. Schlissel is a foreclosure lawyer who has been representing homeowners for more than 45 years. His goal is to keep homeowners in their homes. He defends homeowners in foreclosure lawsuits and helps his clients in obtaining mortgage modifications. He and his associates can be reached for consultation at 516-561-6645, 718-350-2802 or by email to schlissel.law@att.net.
Please click on the link below to watch today’s video blog:
Elliot S. Schlissel is a foreclosure defense lawyer in the Metropolitan New York area. He has been helping homeowners stay in the homes for more than 45 years. Elliot and his associates help their clients obtain mortgage modifications. Elliot can be reached for consultation at 516-561-6645, 718-350-2802 or by email to schlissel.law@att.net.
A “zombie home” is a home which is no longer under the control of the owners, but the foreclosure case is still pending and therefore the bank does not have legal title or possession of the home.
Foreclosed Abandoned Homes
There are communities which have numerous foreclosed homes within them. Sometimes the homeowners abandon these homes. This has a negative effect on the tax base. The other homes in the area have their taxes go up as a result of this action. The abandoned homes fall into disrepair causing the homes surrounding them to lose value. When people drive through an area with abandoned homes, it creates a blight on the neighborhood. Zombie homes are a problem in many neighborhoods throughout the United States. It is estimated that as many as 20% of the homes in foreclosure are vacant.
Proposed New York Program
In States such as New York, where the foreclosure process is long, the issue of zombie homes becomes a larger problem. Attorney General Schneiderman in the State of New York is currently backing an idea of letting communities create land banks for the purpose of buying, refurbishing, and reselling abandoned homes. Attorney General Schneiderman has proposed legislation which would force lenders to maintain a property which has been abandoned after the start of the foreclosure lawsuit.
Maintenance Problems of Abandoned Homes
Homes that are abandoned often have significant maintenance problems. Pipes burst. The wood rots. The lawns sprout weeds. These homes create eyesores and create a blighted effect on the neighborhood.
Syracuse Land Bank Program
Katelyn Wright, the Executive Director of the Greater Syracuse Land Bank, recently stated “studies have shown that they [abandoned homes] have a dramatic negative impact on the property values for the homes in the surrounding vicinity, but also less dramatic but still notable for homes in a several block radius.” Katelyn Wright, as Director of the Greater Syracuse Land Bank, has been involved in dealing with abandoned homes in the Syracuse area. Syracuse experiences as many as 50 new abandoned homes each month. The Land Bank buys many of these homes for a very modest price using State, City and County funding. The homes are then either rehabilitated and put back on the market or, if they are not able to be rehabilitated, they are demolished. This is an example of how one community is dealing with zombie homes.
Elliot Schlissel is a foreclosure attorney who represents homeowners whose homes have been foreclosed on. He helps keep his clients in their homes and advises his clients not to abandon their homes.
To Avoid Default, You Must Answer The Summons And Complaint
A foreclosure lawsuit is initiated by the bank’s lawyers serving you with a Summons and Complaint. You can be served personally. The service can be on a person of suitable age and discretion at the residence. You can also be served by the process server leaving a copy of the Summons and Complaint at the residence and mailing you a copy. When you are served with a Summons and Complaint in a foreclosure you must file a written Answer. You must serve it on opposing counsel and file it with the Court within twenty days if served personally, or thirty days if served by any other means!
Mortgage Modification
You may be negotiating a mortgage modification with the bank. This does not change the fact you must respond to the Summons and Complaint by serving on opposing counsel a written Answer and filing it with the court. Negotiating a mortgage modification does not stop the foreclosure lawsuit from moving forward. If you don’t serve an Answer upon opposing counsel and file it with the court, the bank lawyers will take a default judgment against you. This will allow them to move forward with the foreclosure action without the court ever hearing as to whether you have a defense or wish to stay in your home.
Answering the Complaint
An Answer to the Complaint is a written response to the allegations in the Complaint. In addition to responding to what the bank states in their Complaint, you can submit affirmative defenses and you can also counter sue the bank. There are numerous requirements a bank must meet for their foreclosure lawsuit to go forward. Affirmative defenses can be alleged that the bank lacks standing to sue you, the bank does not have the original note and mortgage, the bank has violated truth in lending laws, the bank has failed to provide you with pre-foreclosure notice requirements, the bank was engaged in fraudulent activities, the person signing the documents is a robo-signer, and numerous other defenses. You only have to be successful with regard to one affirmative defense to stop the bank’s foreclosure lawsuit in its tracks!
In 2008, there was a financial crisis in the United States. The economy wasn’t doing well, banks went out of business. Hundreds of thousands of Americans couldn’t meet their mortgage payments and their homes went into foreclosure. In 2014, six years later, we are still dealing with the aftermath of the issues created by giving mortgages to individuals who couldn’t afford to make the payments.
The no money down mortgage, to a minor extent, still exists in the United States. The no money down mortgage, which to a considerable extent, was responsible for the housing bubble that existed in the United States in 2008, does still exist in 2014. Although this type of mortgage is still available in the marketplace, it is hard to find.
What is a no money down mortgage? This is a mortgage where 100% of the purchase price of a house is financed. A no money down mortgage can allow people with virtually no assets to buy a house. However, these types of mortgages usually come with higher fees, and high interest rates.
Veterans’ Administration Mortgages
The Veterans’ Administration still has mortgage programs which allow veterans to purchase homes without putting money down. These programs, however, have funding fees of two or three percent. The fee is required to be paid in advance. This payment in advance actually creates a down payment of sorts.
There is also a program by the United States Department of Agriculture which offers no money down mortgage in rural areas. It should be noted that some suburban areas around large cities are still considered to be rural areas by the United States Department of Agriculture.
Credit Unions
While banks are for profit institutions, credit unions are not for profit institutions. An example of a credit union which offers a no money down mortgage is the Navy Federal Credit Union. The no money down mortgage given by the Navy Credit Union has a 1.71% funding fee. This funding fee must be paid at the time the mortgage is given.
What Mortgage is Right for You?
If you are in the market to buy a home, you should meet with a mortgage consultant. You should discuss your financial circumstances and make inquiry as to what type of mortgage is best for you and your family. This discussion should take into consideration your long term ability to make the mortgage payments to avoid having your home going into foreclosure.
Elliot S. Schlissel is a foreclosure attorney. He represents individuals and families throughout the Metropolitan New York area whose homes have gone into foreclosure. Elliot and his staff of lawyers take the appropriate legal action to keep families in their homes and avoid losing their homes in foreclosure proceedings.
Home ownership is still the American dream. Today, obtaining a mortgage to purchase a home has gotten to be a lot more difficult. Questions arise as to which type of mortgage is the better route for a prospective homeowner to take. The adjustable rate mortgage or the fixed rate mortgage?
Adjustable rate mortgages are riskier than fixed rate mortgages. An adjustable rate mortgage allows you to go into the mortgage with a lower interest rate for a period of time. The risk is that the interest rate, over time, will go up and become unaffordable. The most common type of adjustable rate mortgage has a fixed interest rate for the first 5 years. However, every year after the first five years, the rate changes on an annual basis. The interest rate is governed by the Federal Reserve Boards “Consumer Handbook on Adjustable Rate Mortgages.” When obtaining an adjustable rate mortgage, the prospective homeowner takes the risk as to whether interest rates will increase over time. If this happens, the monthly mortgage payments may increase to a level that the homeowner will become unable to make the monthly mortgage payments.
Adjustable Rate Mortgages Start With Lower Payments
The adjustable rate mortgage gives the homeowner a lower interest rate in the beginning which allows the homeowner to have additional funds to pay off debt and to accumulate some savings as a cushion. There are caps which are utilized by financial institutions regarding adjustable rate mortgages. These caps usually allow the mortgage to go up no more than 2% per year and 5% over the entire period of the loan.
When Do Adjustable Rate Mortgages Make Sense?
An adjustable rate mortgage makes sense if you are planning on holding your home only for a short period of time. If you are planning on holding your home 5 years or less, the adjustable rate mortgage would be a better deal. If you plan on holding your home for a longer period of time, the fixed rate mortgage is most likely the more conservative way to go and involves a lot less risk. Unfortunately, many homeowners presume they are going to move, relocate, sell and buy, within the five year period and then their plans change. At that point they are stuck with an adjustable rate mortgage unless they refinance all over again.
Fixed Rate Mortgages
A fixed rate mortgage is a mortgage that has a payment that remains the same over the entire period of the loan. These mortgages are usually for terms of either 15 or 30 years. Approximately 75 to 80% of the homeowners who take out mortgages, take fixed rate mortgages on their homes. It gives the homeowners the security of knowing what their mortgages rates will be over long periods of time. It allows them to make plans for the future and gives them the security of not facing higher mortgage payments down the road. Families who have fixed rate mortgages are usually looking to avoid the long term risks of losing their homes in foreclosure proceedings.
Elliot Schlissel is a foreclosure defense attorney representing homeowners throughout the Metropolitan New York area.
Unfortunately, some homes will end up being sold in foreclosure. If your home is sold in foreclosure, your world will not come to an end! To start with, foreclosure home sales are generally advertised in local newspapers. Sales take place usually on the courthouse steps or inside a courtroom within the courthouse. Referees are appointed by judges to conduct these foreclosure sales. The sale usually goes to the highest bidder. However, if no bidder bids the amount owed on the mortgage, the bank will bid in that amount and the bank itself will take title to your home. Once the bank takes title to your home, you will be considered a tenant in the house. The good thing about this is tenants have rights!
Homeowners in Foreclosed Homes
Now that you are a tenant, it does not mean you will be forced to immediately move out of your home. The bank can bring a landlord tenant proceeding and try to evict you. However, landlord tenant proceedings tend to be long drawn out proceedings. Banks usually take a much softer approach. Your attorney can negotiate a lease where you can continue to stay in your home and pay the bank rent. If you seek to move, the bank may be willing to do what is called a “cash for keys deal”. In these deals the banks will usually pay your moving expenses and give you money for a down payment for an apartment. They will take this action to avoid the necessity of litigating landlord tenant proceedings.
Keeping Tenants In Their Homes
So your home was sold and you are now a tenant, the best way of dealing with your new situation is to have your attorney contact the bank and enter into negotiations with regard to your new status as a tenant. Banks are concerned about their image. They don’t like to put families on the street. They spend millions of dollars on advertising on radio and television trying to show they are your best friend, they are charming and wonderful and are prepared to give money to whoever comes into their branches. The last thing they want is to be thought of as that Simon Legree figure from literature.
Bankruptcy Issues Concerning The Sale of Your Home
Foreclosure cases are brought in the Supreme Court in the county in which your house is located in. Landlord tenant proceedings are either brought in a Landlord Tenant Court or in the District Court where your home is located. Bankruptcy proceedings are filed in United States Bankruptcy Court. The Bankruptcy Court is a Federal Court. It is a higher court. The bringing of a bankruptcy proceeding creates an automatic stay which prevents state court proceedings from moving forward. The automatic stay is the equivalent of a temporary injunction enjoining the state court from allowing either landlord tenant or foreclosure cases to move forward. The filing of a Chapter 7 bankruptcy can stop you from being evicted and can prevent the landlord tenant proceeding from moving forward.
Should you be in the unfortunate position where your house is sold in foreclosure, do not despair. There is still help available. You can contact our law office to discuss your situation. Our phones are monitored 24/7. We can be reached at 516-561-6645, 718-350-2802, or 1-800-344-6431.
Economic Injury in Foreclosure Lawsuits
I have personally spoken to hundreds of homeowners with regard to issues and injustices they have been subject to related to mortgages, mortgage modifications, and foreclosure lawsuits against their homes. However, there is a concept most homeowners do not seem to understand. There is a principle of law which states when you bring a lawsuit you must allege monetary damages. To prove monetary damages you must show there has been an economic injury to you and a certain amount of money is required to redress your grievance for this economic injury (damages). Unfortunately in most foreclosure cases it is extremely difficult for the homeowner to allege economic damages in a countersuit against a financial institution.
Destroying Title To One’s Home
In the counter lawsuits brought by our law firm, we allege there has been economic injury to the homeowner because the financial institution, upon initiating a foreclosure proceeding, filed what is called a lis pendens. A lis pendens is a notice to the world a foreclosure lawsuit has been initiated. The filing of a lis pendens has a negative impact on the title to one’s home. It provides notice to all people interested in any transaction concerning the home that it is involved in a foreclosure lawsuit. Destroying the title to one’s home can be the basis for countersuing the bank for monetary damages.
Fraud
In cases where the bank has engaged in fraudulent activities, has violated truth in lending laws and/or has been involved in predatory lending, there is potential for economic injury the homeowner can recover. Unfortunately the cases do not currently allow a homeowner to set aside a mortgage based on any of those aforementioned theories of recovery. The courts have not granted homeowner’s applications in the past to set aside mortgages and remove the liens from the homeowner’s homes. This is still an avenue which is being pursued by our law office and other law firms defending beleaguered homeowners in foreclosure defense lawsuits brought by financial institutions.
To watch today’s video blog, please click on the link below:
Elliot S. Schlissel is a foreclosure defense attorney. He can be reached for consultation at 516-561-6645 or 718-350-2802.
