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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.

Foreclosure and Continuing to Live in the House for Years

Foreclosure And Continuing To Live In The House For YearsThousands of American families have stopped making their mortgage payments, their houses have gone into foreclosure and they’re living in their homes for years without making mortgage payments. Approximately four and a half million American homes are behind on their mortgage payments or have foreclosure actions pending against them. In two-thirds of these cases, the homeowners continue to live in their homes, with their families, without making any payments towards their mortgage. Many of these families have been living in their homes for more than a year and approximately one-third of the families have been living in their homes for more than two years, without making mortgage payments.

Foreclosures Move Slowly Through the Courts

In virtually all fifty states, the courts have been inundated with foreclosure proceedings. At a time of economic turmoil throughout the country, additional judges and resources have generally not been allocated to deal with the foreclosure crisis. This means that cases sit idle in the courts for long periods of time before the foreclosure actions are completed. It is estimated that it takes approximately a little more than a year and a half for the average foreclosure case in the United States to make it’s way through the courts. In the State of New York, in cases handled by my office, it generally takes three to five years for the cases to proceed through the courts.

Evictions After Foreclosure

Even if your home is foreclosed on and eventually sold years later at auction, you can still continue to stay in your home. At the end of a foreclosure sale, should someone buy your home, whether it be the bank or a third party, and they seek to remove you from your residence, they have to bring an eviction proceeding. Eviction proceedings are brought in landlord/tenant courts. These proceedings are separate and distinct from the foreclosure actions. There are additional calendar delays in these eviction proceedings. Most take anywhere from two to four months.

Foreclosure Defense Lawyer

The Law Offices of Schlissel DeCorpo handles foreclosure defense for homeowners. We litigate all aspects of foreclosure proceedings including, but not limited to, defective foreclosure lawsuits,defective mortgages, predatory lending issues, bad faith, and other real estate legal issues. We attend foreclosure court conferencesfor the clients we represent. We also assist our clients in the preparation of mortgage modification applications, as well as deal with mortgage modification programs that are unresponsive to our clients’ needs.

In certain situations, foreclosure related bankruptcies can be utilized to stop foreclosures from moving forward. Upon filing either a Chapter 7 or a Chapter 13 bankruptcy, the bankruptcy court issues an automatic stay that stops the foreclosure lawsuit from moving forward. It should be noted that bankruptcy proceedings are brought in the United States Bankruptcy Court, while foreclosure proceedings are brought in New York State Courts.

For our clients who file bankruptcy, we can sometimes eliminate second mortgages. We also can assist our clients in re-establishing their credit after filing bankruptcy. Should you have questions as to what type of bankruptcy would be appropriate for you or whether there is other alternatives related to foreclosure defense, feel free to contact us. At your initial free consultation, we will discuss all of your foreclosure options. You can reach us at 1-800-344-6431, 516-561-6645 or 718-350-2802. We look forward to seeing you again on our foreclosure blog.

Analyzing Mortgage Applications

How large a mortgage can you afford? The size of a mortgage you can qualify to obtain will determine how much you can spend on purchasing a home. There are a variety of different factors looked at by banks when analyzing mortgage applications.

Debt – to – income Ratios

What is a debt to income ratio? There are two types of debt to income ratios. A front – end debt to income ratio and a back – end debt to income ratio. The front – end and back – end debt to income ratios are utilized by mortgage lenders during the mortgage application process. A front – end debt to income ratio is in reality a housing expense calculation. The theory is how much of an individual’s or family’s gross (pre tax) income can be utilized to make mortgage payments on a monthly basis. This front – end debt to income ratio usually runs between 28% and 33% of an individual’s or family’s income. This means that the financial institution will not approve your mortgage application if your debt to income ratio goes beyond the financial institution’s guide lines. This specifically applies to conventional loans and Federal Housing Authority (FHA) loans.

Back-end Debt to Earnings Ratio

The back – end debt to earning ratio is the percentage of you or your family’s gross (pretax) monthly income that will be utilized for debt service for your financial obligations. Financial obligations include your proposed mortgage, credit card bills, car loans, child support, and all other types of financial indebtedness in this ratio. The back – end debt to income ratio utilized by financial institutions in their mortgage underwriting process is usually between 36% and 40% of your gross monthly income. This means if your proposed new mortgage and other debts are more than 40% of your gross income, you will most likely get turned down for your mortgage application. In situations where there are assets in the bank and very high credit scores, financial institutions have been going as high as 48% on the back – end debt to income ratio.

Before you submit a mortgage application, you should calculate your front – end and back – end debt to earnings income ratios. This will give you a better idea as to whether you will qualify for the mortgage you are applying for.

Foreclosure Defense Lawyers

First you get the loan, then you start making payments to the loan. But what happens if your financial situation changes? If you lose your job, become disabled, are downsized or have other financial problems, you may find yourself in a foreclosure situation. Do not dispair. The Law Offices of Schlissel DeCorpo has been helping families deal with foreclosure problems for the last 20 years.

We provide all aspects of foreclosure defense. We attend foreclosure court conferences on behalf of our clients. We litigate issues such as defective foreclosure lawsuits, predatory lending, defective mortgages and other significant real estate related defenses. We’ve developed an expertise concerning federal laws and foreclosure.

We can also help you deal with foreclosure-related bankruptcy issues. Filing either a Chapter 7 or a Chapter 13 bankruptcy may be necessary to deal with the foreclosure on your home. If you file bankruptcy, you can eliminate second mortgages in some situations, stop foreclosure, stop other debt collections practices and at the end of the bankruptcy, action can be taken to re-establish your credit. Feel free to call us for a consulation. Our phone numbers are 1-800-344-6431, 516-561-6645 or 718-350- 2802. Thank you for visiting our foreclosure defense blog.

Credit Reports: What You Need to Know

creditForeclosures, bankruptcies, and losses by credit card companies for non-payment of your bills will have an obvious negative impact on your credit score. There are numerous other matters that are taken into consideration by credit agencies concerning credit scores.

Making Minimum Payments on Your Bills

Creditors make a lot of money from consumers who make minimum payments on their credit card bills. However, making minimum payments can have a negative impact on your credit score. Nessa Fedis, the Vice President of The American Bankers Association, states “it suggests you’re under financial stress.” Try to pay more than the minimum amount on your credit card bills. Minimum payments can be interpreted that you’re in financial difficulty.

Co-signing

A friend, family member or child may require you to guarantee their debt. When you co-sign for their debt, their entire debt appears on your credit report. The debt will be considered yours. If the primary obligore under the agreement misses payments or makes late payments, it will have a negative affect on the credit score of the co-signer.

Short Sale of Real Estate

A short sale takes place when the bank agrees to allow the sale of a residence they have a mortgage on for less than the amount due and owing on the mortgage. This causes the financial institution to lose money. This will have a negative impact on your credit score. You should negotiate with the lender prior to the short sale. It is important you request that the lender not report that you paid less than the balance due and owing to the credit agency. If they report to the credit agency that you paid less than the balance due on the note and mortgage, it will have a significant negative impact on your credit score.

Numerous Inquires

When you apply for credit with a lender or other institution, an inquiry is made against your credit report. When the credit agency sees numerous inquiries, your credit score is impacted in a negative manner.

Having good credit is important if you seek to buy a house, obtain credit cards, lease a car or engage in other financial transactions.

foreForeclosure and Bankruptcy

Foreclosure and bankruptcy have a significant negative impact on credit scoring. 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.

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 Proceedings are Devastating Communities Throughout the Country

The value of homes throughout the country has gone down. Many Americans live in homes that worth less then the amount of their mortgages. The high unemployment rate and the downsizing of jobs by many employers have robbed homeowners of the ability to make their mortgage payments.

Foreclosure on Long Island

Nassau and Suffolk Counties on Long Island have some of the highest foreclosure rates in the State of New York. President Obama’s programs have not stopped foreclosure rates from rising.

It is estimated that it takes approximately 2 ½ years for lender to complete a foreclosure proceeding and take title to a home in New York State. Homeowners who are losing their homes lose motivation to maintain their property. This causes a blight on their neighborhood which has a negative effect on the surrounding homes in their community.

Loan Modifications

Lenders in the United States are doing a terrible job in processing loan modifications. The process is slow, painstaking and yes poorly managed by the financial institutions.

The housing problems in the United States are slowing down the economic recovery. More has to been done by financial institutions to modify mortgages and allow homeowners to stay in their homes.

Foreclosure Defense Lawyers In New York City and Long Island

Law Offices of Schlissel DeCorpo represents homeowners whose homes are in foreclosure. We assist the homeowners with mortgage modifications. We litigate issues involving defective foreclosure lawsuits, predatory lending, defective mortgages and real estate problems in general. Our attorneys are familiar with the federal laws involving foreclosure.

Sometimes the best way to deal with a foreclosure proceeding is to file foreclosure related bankruptcy. In these situations we file either Chapter 7 or Chapter 13 bankruptcies on behalf of our clients. These bankruptcies stop foreclosures, stop debt collections and allow our clients to obtain a fresh start. Feel free to call us for a consultation.

Slowdown in Foreclosures on Long Island

In April of 2011, there were 540 foreclosure filings in Nassau and Suffolk counties on Long IslanSlowdown In Foreclosures On Long Islandd. This represented the lowest number of foreclosure lawsuits initiated during a month since December of 2008. It represented a drop of 21.5% from the level of foreclosure activity in March of 2011.

Foreclosures Moving Slowly Through the Courts

The courts in the State of New York have been inundated with foreclosure filings for the past few years. Governor Andrew Cuomo has recently stripped the budget of the court system of 174 million dollars. This has caused massive layoffs and cutbacks within the court system. At a time when there are huge back logs in foreclosure activities, there are less and less resources within the court system to deal with these foreclosures. It is estimated that it could take as long as three years to complete the foreclosure process for foreclosures initiated in the second half of 2011.

Lenders Reluctant to Foreclosure

Lenders have stated that it is an expensive procedure to litigate a long foreclosure matter. In the end, they can end up with a property that needs to be repaired and maintained. It can also take the lender a substantial period of time to sell the property.

Delays take place in the foreclosure process because lenders are allowing more time during the period between delinquency and foreclosure. They are waiting to see if loan modifications go through. They are waiting for short sales. There are judicial delays caused by the courts inability to process the huge amount of cases that are in foreclosure.

Do Delays Help or Hurt The Real Estate Market

The question is do delays help or hurt the market place. There is a considerable body of thought that now holds that the faster we move the foreclosures through the legal system, the faster we can eliminate the pain. They compare this to pulling off a band-aid one hair at a time or ripping the band-aid off all at once. Unfortunately, ripping the band-aid off all at once destroys many peoples’ lives and forces them out of their homes with no place else to go!

Aggressive Foreclosure Defense Lawyers

We can fight your foreclosure. We litigate predatory lending issues, defective foreclosure lawsuits, and defective mortgages. We attend foreclosure court conferences for our clients. We draft mortgage modifications and deal with mortgage modification programs that fail to meet our clients needs. We litigate foreclosure related bankruptcies, whether they’re a Chapter 7 bankruptcy or Chapter 13 bankruptcy. We also assist our clients in re-establishing credit after filing a bankruptcy. We can help stop your foreclosure from moving forward! Call us and we will provide you with a free consultation. We will discuss all of your foreclosure options. Feel free to come back to our foreclosure blog on a regular basis to read about real estate and foreclosure related issues.

Defense of Incompetency in Foreclosure Lawsuits

JP Morgan Chase sued Mr. & Mrs. Haedrich in a foreclosure proceeding in Nassau County, New York. Judge Phelan was the Supreme Court judge assigned to the case.

A guardian was appointed for the Haedrichs. The guardian moved to vacate judgments of foreclosure, as well as the mortgage and notes. The guardian alleged that Mr. & Mrs. Haedrich executed the mortgages and notes accompanying said mortgages in 1999, when they were incompetent. He claimed they suffered from a mentally debilitating condition, including dementia, which deprived them of their ability to make a reasoned intelligent decision concerning the execution of the note and mortgage.

Homeowners Competent to Enter Into Mortgage

The court held that the evidence presented did not sufficiently show that Mr. and Mrs. Haedrich were incompetent at the time of the execution of the mortgage and note. The court also held that the lender was not on notice and did not have any knowledge as to any aspect of their incapacity. The court held that the record did not present appropriate medical evidence showing the Haedrichs were rendered legally incompetent due to mental illness or for other reasons when they executed the necessary documents related to the note and mortgage at the real estate closing. The application by the guardian on behalf of the Haendrichs was dismissed.

About Our Firm

For more than thirty years, our law office has represented individuals in lawsuits involving creditors. We handle foreclosure defense proceedings throughout the New York Metropolitan area. We have a high degree of success in fighting off foreclosure lawsuits.

Should you or a loved one have questions or problems concerning a foreclosure lawsuit, please contact us at 1-800-344-6431 or 718-350-2802.

Housing Crisis Has Nightmare Scenarios

Foreclosure DefenseThere is currently a national scandal involving the “robo-signing” of foreclosure documents by personnel of financial institutions. There is concern that the foreclosure predicament resulting from the mortgage crisis in this country may destabilize the American financial system.

The Troubled Asset Relief Program, more commonly referred to as TARP, was set up to deal with the bank crisis in the United States related to the banking industry over-extending itself concerning residential mortgages. The Congressional Oversight Panel is the watchdog agency designed to monitor the TARP program. Recently, the Congressional Oversight Panel has been issuing warnings that the problems involving the servicing of foreclosures in the United States could create global economic problems.

The Congressional Oversight Panel is concerned that banks may not be able to prove they own the mortgage loans that they seek to bring foreclosure proceedings on.

In recent months, foreclosure proceedings have actually gone down. This is not related to homeowners making their mortgage payments; it is instead related to lenders temporarily stopping their foreclosure proceedings due to allegations of mishandling and fraud in thousands of cases.

Homeowners being unable to make their mortgage payments and the huge volume of foreclosures in the United States are significant factors in preventing the United States from having an economic recovery. The foreclosure crisis relates to banks giving mortgages to hundreds of thousands of individuals who basically could not afford to make the payments on their mortgages.

About Our Law Firm

The Law Offices of Schlissel DeCorpo is a general practice law firm that has extensive experience in handling foreclosure defense. In addition to foreclosure defense, our office handles litigation concerning defective foreclosure lawsuits. We also assist our clients in Chapter 7 and Chapter 13 bankruptcies as well as preparing and submitting mortgage modifications> on their behalf. Should you have a problem, feel free to contact us. Our phones are answered 24 hours per day, 7 days per week. Our phone numbers are 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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