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Homeowner Sues Bank For Breach of Contract Regarding Temporary Mortgage Modification

mortgage modification attorneysHomeowner Lyo brought a breach of contract proceeding against Bank of America. Lyo had attempted to obtain a mortgage loan modification from Bank of America. She had contacted Bank of America. Bank of America sent her an application for a loan modification. Thereafter Bank of America accepted and mailed Lyo an agreement for a trial modification mortgage plan.

Payments Made Under Trial Mortgage Modification

Lyo made all necessary payments under the trial program. She continued to make payments which were accepted by Bank of America even after the trial program finished. However, Bank of America never sent her a permanent mortgage loan modification. Bank of America notified Lyo she did not meet the eligibility requirements for a modified loan. They claimed this was due to the present value of her home.

23 Payments Accepted, 24th Payment Rejected

Bank of America had accepted payments from Lyo for 23 consecutive months after she had agreed to the trial period mortgage modification plan. Bank of America rejected her 24th payment. Supreme Court Justice Judith McMahon sitting in the Supreme Court Part in Richmond County ruled Lyo’s temporary mortgage modification plan could be considered an enforceable agreement. This agreement granted Lyo a loan modification as described within the terms of the agreement. She found the language in the temporary mortgage modification plan unequivocally provided, if Lyo complied with all the conditions, Bank of America was obligated to grant her a permanent loan modification. Bank of America’s application to dismiss Lyo’s breach of contract lawsuit against it was therefore denied.

Conclusion

Numerous homeowners come to my office each and every month with a story of woe concerning temporary mortgage modifications. The story goes as follows, the bank offered them a temporary mortgage modification and they accepted it. They thereafter made payments for a period of time, usually six months, under the temporary mortgage modification plan. Thereafter the bank comes up with some type of reason to turn them down for a permanent loan modification. Sometimes the reasons are very spurious. Homeowners who fulfill their obligations under temporary mortgage modification plans should always be given a permanent mortgage modification under the same terms!foreclosure defense lawyer on Long Island and New York City

Mortgage Modifications for Second Mortgages

Please click on the link below to watch today’s video blog:

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Elliot S. Schlissel is a foreclosure defense attorney.  He and his associates have been representing homeowners for more than 20 years.  Elliot represents homeowners throughout all phases of foreclosure litigation, at foreclosure settlement court conferences and helps his clients obtain mortgage modifications.  He can be reached at 516-561-6645, 718-350-2802 or by email to schlissel.law@att.net.  Contact the office for a free consultation.

Bank Had No Obligation to Grant a Mortgage Modification

To watch today’s video blog, please click on the link below:

http://youtu.be/iAMqqLAknd4

Elliot S. Schlissel is a foreclosure attorney.  He has more than 35 years experience representing clients in all types of real estate matters.  He strives to keep his clients in their homes.  He can be reached at 516-561-6645, 718-350-2802, 1-800-344-6431 or by email to schlissel.law@att.net.

Your Mortgage Modification Application Was Denied – What Do You Do Now?

foreclosure defense attorney on Long IslandIf your mortgage modification was denied you are in good company. Very few people are actually successful in getting mortgage modifications. Individuals obtaining mortgage modifications have often submitted applications two or three times before they are eventually approved.

Preliminary Approval of a Mortgage Modification

Even if you receive a preliminary approval of a mortgage modification this may not mean you will receive a permanent mortgage modification. A significant portion of families receiving preliminary mortgage modifications make their payments for a period of between 3 and 6 months and then receive a letter from the bank stating they have decided not to give them a permanent mortgage modification. However, if you receive a preliminary mortgage modification and you decide to go forward with the modification, you should make your monthly mortgage payments in a timely manner.

Making monthly mortgage payments even though your mortgage payment may be less than it originally was, may still place a financial burden on you. Should you have other bills outstanding such as credit card bills you can no longer afford to pay, once you have obtained the mortgage modification you may be able to file a Chapter 7 bankruptcy and eliminate your payments on the unsecured debts such as credit card bills, medical bills, bills to cell phone companies, doctors, dentists and other types of unsecured debt.

Second Mortgages

If you are successful in obtaining either a preliminary or permanent modification of your first mortgage, you should then submit an application to the financial institution which holds your second mortgage. The fact that you are approved for a first mortgage modification will have an affirmative impact on the second mortgage lender and will make that mortgage modification application more likely to succeed.

Foreclosure Defense

If during the mortgage modification submission process or after you are turned down, the bank threatens to put you into foreclosure it is time to hire a foreclosure defense lawyer. During the course of a foreclosure lawsuit, the parties are subject to mandatory foreclosure court conferences. During these court conferences pressure can be placed on the financial institution to grant a mortgage modification even if you were turned down several times in the past. In addition, there are numerous affirmative defenses, and counter lawsuits which can be brought against the financial institution to either get the foreclosure dismissed or to motivate the financial institution to reconsider providing you with a mortgage modification.

Foreclosure Lawsuits

Even if you never receive a mortgage modification, the foreclosure lawsuit can be tied up in court in the Metropolitan New York area for anywhere from 4 to 6 years. This would give your family a substantial period of time to continue living in your home. In most situations the bank will still have to continue paying the taxes on your home and the casualty insurance on your home even though you are not making your mortgage payments.

helping homeowners stay in their homesIf you have questions or issues concerning your mortgage and/or foreclosure issues, contact the foreclosure defense lawyers at the Law Offices of Schlissel DeCorpo. We can be reached at 1-800-344-6431, 516-561-6645 or 718-350-2802.

Bank Delays Tolls Interest in Foreclosure Lawsuit

mortgage modification attorneysA homeowner by the name of Lucic brought an application before Supreme Court Justice Peter Moulton who sits in New York County. The motion in the foreclosure case was to stop the mortgage payments from accruing in the foreclosure lawsuit that had been brought against him concerning his condominium apartment. Justice Moulton took the position the 6.5% interest rate on the mortgage held by Bank of America was a bit high taking into consideration the current interest rate payments.

HAMP Application

Bank of America opposed the motion. They claimed they had reviewed the HAMP application submitted by Lucic and they denied it pursuant to the Freddie Mac HAMP guidelines. Justice Peter Moulton found the argument submitted by Mr. Lucic, that Bank of America violated New York Civil Practice Law section 3408. The bank had failed to timely and properly process his mortgage application for a loan modification. They also continually made demands for the same documents which had previously been submitted to the financial institution. The court took the position Bank of America had engaged in a “two year run around”. The court took into consideration Lucic had diligently and faithfully provided Bank of America with the information they requested on many occasions. The court therefore took action and tolled (stopped) interest from accruing on this foreclosure from April 1, 2010 through April 30, 2012.

Conclusion

Each and every week homeowners come into my office and they tell me the same thing. They submitted a mortgage modification application and the bank they were dealing with continually asked they resubmit the same information over and over again. Sometimes these submissions took place over a period of years. The reason why the mortgage modification process doesn’t work is the banks have refused to properly fund this program. By under staffing the program, and not setting up internal guidelines, they have frustrated individuals who apply for mortgage modifications. For the large majority of home owners seeking help, HAMP instead of helping them, frustrates them.helping homeowners stay in their homes

Low Cost Loans Designed to Stop Foreclosure On Long Island Are Now Available

loan modification lawyerNew York Attorney General Eric T. Schneiderman has recently held a news conference with regard to the new low cost loan program designed to stop foreclosures. At his news conference he stated “we are going to provide loans to families that prevent them from losing their homes.” He went on to state “we know how hard Long Island was hit by the foreclosure crisis this was the worst of the worst. There was a big boom and a big bust.”

Foreclosures on Long Island

The foreclosure rates in Nassau and Suffolk Counties are among the highest in New York State. The highest rate of foreclosures is in the Village of Hempstead in Nassau County. Hempstead residents have a mortgage delinquency rate approaching 30%.

The New Program

Under the new program, families whose mortgages are overdue can borrow up to $40,000. These low cost loans can be used to bring mortgages up to date and deal with property tax issues. These loans will not be payable until the house is sold or the entire mortgage is repaid. These loans will be interest free. However, the amount due and owing will be adjusted to account for inflation. Applications for these loans will start being processed on September 15, 2014. Applications for Long Island residents will be processed first and a month later residents of other parts of the state can apply for this program. There is a requirement that individuals applying for this program earn less than 120% of the area’s median income.

helping homeowners stay in their homesElliot Schlissel is a foreclosure attorney. Elliot has been helping New Yorker’s stay in their homes for more than 20 years. Elliot and his staff of lawyers litigate foreclosures, deal with predatory lending issues, and assist clients in applying for mortgage modifications. His phones are monitored 24/7 and free consultations are offered.

Increased mortgage modifications have scaled foreclosure down

foreclosure defense lawyerThe rate of mortgage modifications has taken an upward turn again to relieve homeowners from foreclosure. As per the recent statistics, during April to June this year, around 204,000 homeowners have already qualified for permanent loan modification. Among all, nearly 160,000 homeowners have obtained proprietary loan modification and 44,860 homeowners have been able to modify mortgage loans by using the Home Affordable Modification Program or HAMP. Numerous mortgage servicers have assisted homeowners thoroughly in mortgage modifications and made it possible to achieve this mark in just 3 months.

As the data suggests, since 2007, the situation has taken a positive turn. More than 6.52 million permanent loan modifications have been completed successfully. Among the 6.52 million, 5.31 million loans are under the proprietary programs and approximately 1,223,449 modifications are under the HAMP. The development is great indeed and it’s expected that by next few years it’ll be possible to control the foreclosure effectively enough.

The steady increase in mortgage modification has already reduced the number of short sales and foreclosure in the course of time. In the second quarter of this year, around 329,000 foreclosures have been recorded. This is lower than the previous quarter which encountered 472,000 foreclosures. There is a considerable 30% drop in the foreclosure count. In 2012, during the second quarter, 527,000 foreclosures took place. So, in one year the total number of foreclosure has dropped by 38%. Not only foreclosure, but there is a reduction in short sales also. In the second quarter, total 81,000 short sales have been recorded which is lower enough in comparison to the last quarters’ 84,000 count. So, short sales have also reduced by 3%. In 2012, 107,000 short sales were completed.

During the first quarter of 2013, 162,000 foreclosures were completed. After increased number of mortgage modifications, the number of foreclosure was 158,000 in the second quarter. There is a 2% reduction in the overall count since last quarter. Exactly one year ago, in the second quarter of 2012, around 185,000 foreclosures were completed. So, in one year, there is a huge reduction of 15% in foreclosure count.
Short sales have reduced by 25% and foreclosure around 15% in the last one year. If you’ll evaluate the numbers according to months, then you’ll be able to detect the gradual change. In May 2013, almost 115,000 foreclosures were recorded. In June the number came down to 97,000, a 16% reduction. There is a 7% reduction in number of short sales also.

All the surveys and their results are indicating to a positive change in the mortgage market. The number of mortgage delinquencies are reducing as per the records but there is perhaps more to check than just figures. Market experts are however hopeful about the whole progress. The vice president of RealtyTrac, Daren Blomquist has stated that marketers are trying their level best to find a way through the numerous bad loans and assist troubled homeowners accordingly. Apart from that, the property prices are also going low now. The curtailed property prices have made it possible for the troubled homeowners to save their homes through mortgage modification.

Blomquist also added, “Lastly, the persistent foreclosure prevention efforts over the past few years have waged a war of attrition on the foreclosure problem, helping to keep a lid on foreclosure activity”. The positive decline in the foreclosure count has definitely made the things more favorable for the homeowners. However, it’s difficult to assume that for how long the situation will be favorable for the homeowners. It’s essential for homeowners to be alert and make the most of the favorable market condition.

Anjelica Cullin, Financial Writer

Home Sales Are Brisk In May 2013 On Long Island

real estate attorneysThere were more homes for sale on the market in May of 2012 than there were in May of 2013 on Long Island. There were more new listings in Nassau County in May of 2013 than there were in May of 2012, due to the resurgence of more buyers coming back into the market place to purchase homes.

Supply And Demand Of Homes On The Market Place

Jonathan Miller, the President and Chief Executive of an appraisal firm called Miller Samuel Inc., recently stated “the supply coming on to the market can’t keep pace with demand.” He was referring to the market place in Nassau County. The strong demand by prospective purchasers is reducing the inventory of homes on the market in Nassau County. Although the inventory of homes on the market for sale has been decreasing, it is still greater than the normal inventory that existed prior to the housing crisis. A 6 ½ month supply of homes on the market is considered a balanced market in New York.

Home Prices Rise Slightly

The sale prices of homes in May rose approximately 4% in Nassau and Suffolk Counties on Long Island. This is far below the 15.4% increase in the sale prices of homes overall in the United States. However the 4% increase is still a positive factor. Rising home prices impact on the confidence in the economy. Cecelia Chen, a housing analyst for Moody’s Analytics recently stated “we are making strides towards a healthy market in terms of pace of activity.” She also stated, “Home prices are rising and construction activity is picking up, home sales are picking up, but the pace is exceptionally strong.”

Any increase in the amount of homes being sold and the prices they are being sold for is good for homeowner’s all over Long Island.

About the Author

helping homeowners stay in their homesElliot S. Schlissel, Esq. is an attorney practicing on Long Island for more than 37 years. His law firm handles a variety of real estate matters, foreclosure law suits, and issues involving mortgage modifications.

Banks Deny Mortgage Modifications

mortgage modification attorneysNew York Attorney General Eric Schneiderman has decided to sue Bank of America and Wells Fargo Bank for refusing to live up to their obligations concerning mortgage modification applications. Attorney General Schneiderman stated “339 people, since October of 2012, have complained about mortgage modification problems with Wells Fargo and Bank of America.” These banks are under an obligation under a $25 billion dollar settlement with the fifty States and the Federal Government to respond to requests for mortgage modifications within 30 days. Attorney General Schneiderman claims Wells Fargo and Bank of America have flagrantly violated their obligations under the settlement of that law suit. Mr. Schneiderman stated 220 of the complaints by homeowners were against Wells Fargo and 119 complaints were made against Bank of America.

Bank Of America And Mortgage Modifications

In response to these allegations, Bank of America representatives say they had already provided relief for more than 10,000 New York homeowners. These mortgage modifications, they claimed, amounted to more than a billion dollars. Bank of America representatives claimed they would work quickly to address the complaints made to the New York State Attorney General. A Wells Fargo representative stated “it is unfortunate that [Schneiderman] has chosen this route rather than engage in constructive dialogue through the established dispute resolution process.”

Foreclosure Defense

More and more homeowners have been taken advantage of by financial institutions to which they have submitted mortgage modifications requests. The loss of documents, the many months of delays, the lack of response from the bank’s representatives are frustrating and aggravating to homeowners. The best way for a homeowner to deal with these problems is to contact a foreclosure attorney who is experienced in taking legal action against banks for their failures to live up to their obligations and State and Federal consumer protection laws.assisting homeowners

Summer Home Buying Season, the Worst in Five Decades

home1Spring of each year starts the home buying season. The months of April through the end of August signals the time that most home buyers come into the market. This is usually a time of heightened activity in the real estate market for the sale of single family homes. This was not true, however, in the year 2011. From the period of April through the end of August of 2011, fewer homes were sold in the United States during any six month period in the last fifty years. Home sales from the Spring and Summer were the weakest since 1963. This is an indication of how poor the real estate market and the economy in the United States is doing.

Low Mortgage Rates

Mortgage rates reached their lowest levels since records were kept during the Summer months. However, even with record low mortgage rates and home prices continuing to go down, would-be buyers are still not being enticed. Approximately one hundred and seventy thousand homes were sold from March through August of this year. This is even less than was sold in the same period in 2010, which, up until that time, was the worst in a half a decade. Normally, approximately four hundred thousand homes would sell during this period of time.

Home Prices Falling

The medium price for the sale of existing homes fell to approximately $168,000. This was decreased in 5% from the prior year. New home prices averaged about $209,000, which was almost 8% less than the prior year. Low priced foreclosure sales and short sales have been driving the market down. This causes real estate brokers to press sellers to lower their prices on their homes to compete with these foreclosures and short sale homes. It is estimated that homes in foreclosure and short sales sell for 20% less than their market value. This has the impact of lowering home prices throughout the areas where the short sales and foreclosures are located.

Is the single family home becoming a depreciating asset? Is the American dream over? I don’t think so. However, we may be headed for an additional five years of flat real estate prices before we see a significant rebound

Bankruptcy can act as an escape valve to prevent the loss of a home, stop foreclosure, eliminate a second mortgage and stop debt collection harassment. Your credit can be re-established after filing either a Chapter 7 or a Chapter 13 bankruptcy One bankruptcy myth is that you will never receive credit again after filing bankruptcy. This is simply untrue.

Bankruptcy Lawyers

Should you have questions or issues concerning your financial situation or are considering filing for bankruptcy, feel free to call the Law Offices of Schlissel DeCorpo. We’ve been helping our clients for more than 30 years deal with foreclosure defense and bankruptcy matters. We can be reached at 1-80–344-6431, 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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