Please click on the link below to watch today’s video blog:
Elliot S. Schlissel is a foreclosure lawyer representing homeowners throughout the Metropolitan New York area. He regularly sues banks to set aside mortgages and help keep his clients in their homes. He and his associates can be reached at 516-561-6645, 718-350-2802 or by email to schlissel.law@att.net.
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.
In New York State there is a statute known as the New York Real Property Actions and Proceedings Law section 1304. This statute, in June of this year, was extended for five additional years. This section of the law requires a financial institution provide “at least 90 days before a lender, an assignee, or a mortgage loan servicer commences legal action against the borrower…such lender, assignee or mortgage loan servicer shall give notice to the borrower”.
90 Days Notice to Homeowner
The section requires the notice to the homeowner provide a warning they are on the verge of losing their home in a foreclosure lawsuit. In addition, this notice requirement gives key information concerning how long the homeowner is in default on their mortgage and how much is due and owing on their mortgage. The law requires service of this notice be given to the homeowner and they be given a reasonable opportunity to take action to save their home such as by negotiating a mortgage modification.
Prerequisite for Foreclosure Lawsuit
The service by the financial institution and/or its representatives of the notice under this section of the law is a necessary prerequisite before a foreclosure lawsuit can be initiated. In the event the financial institution fails to fully comply with this requirement, a homeowner in a foreclosure proceeding can move to have the foreclosure case dismissed.
Settlement Court Conferences
In June of this year, the settlement court conference requirements in foreclosure lawsuits was also extended for five years. New York Civil Practice Law and Rules section 3408 had established a mandatory settlement court conference requirement in all foreclosure lawsuits. Upon the service of a summons and complaint in a foreclosure lawsuit, the Supreme Court within twenty days of proof of filing of this foreclosure lawsuit, is required to schedule a mandatory foreclosure conference. The purpose of the foreclosure court conference is to have settlement discussions between the homeowner and the representatives of the financial institution. New York Civil Practice Law and Rules section 3408 requires both the homeowner and the representative of the financial institution negotiate in good faith to reach a solution to the foreclosure case by having the mortgage modified. It is the court’s responsibility to see to it both parties negotiate in good faith and there are not unreasonable delays caused by either party.
Lenders Not Compelled To Provide Mortgage Modifications
Unfortunately, even though a lender must attend a foreclosure court conference they have no obligation other than negotiate in good faith. Simply stated, they do not have to grant a mortgage modification. They can deny it for any reasonable reason. Unfortunately for homeowners, courts cannot force a lender to grant a mortgage modification under New York law.
Elliot S. Schlissel is a foreclosure defense attorney helping homeowners stay in their homes throughout the Metropolitan New York area.
To watch today’s video blog, please click on the link below:
Elliot S. Schlissel is a foreclosure defense lawyer. He can be reached 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 Schlissel is a foreclosure defense attorney. He can be reached at 516-561-6645, 718-350-2802 or by email to schlissel.law@att.net.
To watch today’s video blog, please click on the following link:
Elliot S. Schlissel is a foreclosure defense attorney. He can be reached by telephone at 516-561-6645 or 718-350-2802, or by email to schlissel.law@att.net.
To watch today’s video blog, please click on the link below:
Elliot S. Schlissel is a foreclosure defense lawyer. He can be reached at 516-561-6645, 718-350-2802 or by email to schlissel.law@att.net.
Please click on the link below to view today’s video blog:
Elliot S. Schlissel is a foreclosure defense attorney. He can be reached by telephone at 516-561-6645 or 718-350-2802, or by email to schlissel.law@att.net.
To watch today’s blog video regarding deficiency judgements, please click on the link below:
Elliot S. Schlissel is a foreclosure lawyer. He can be reached by telephone at 516-561-6645 or 718-350-2802, or by email to schlissel.law@att.net.
Please watch today’s video blog by clicking on the following link to learn about the new mortgage laws in effect in New York State:
Elliot S. Schlissel is a foreclosure defense lawyer. He can be reached at 1-800-344-6431 or by email at schlissel.law@att.net.
