New York foreclosure defense lawyers

Stopping Foreclosure in Its Tracks

December 27, 2013 by Elliot S. Schlissel

Times are tough in New York right now. Many businesses have downsized their employees. This has caused layoffs. It is harder to make a living in New York today than it was in earlier decades. Financial difficulties can cause stress. The ultimate problem consumers face is when they receive notice the bank is going to foreclose on their home and put them on the street. Receiving notice your home is going into foreclosure can be deflating. However help exists.

You can take legal action to stop foreclosures from moving forward in New York. You do not have to surrender to the financial institutions and be forced out of your home at a time when your credit is at its lowest point. Hiring an experienced, dedicated foreclosure attorney can make the difference between continuing to live in your home and being forced out of it.

There are numerous steps a foreclosure defense lawyer can take to help homeowners. Forbearance agreements can be negotiated. Mortgage modifications can be submitted. Mortgage modifications can sometimes reduce the principal, provide lower interest rates and more flexible terms. Some lenders are willing to defer significant portions of the mortgage indebtedness to later points in time. When applying for a mortgage modification, it is important the homeowner show financial difficulties. Mortgage modifications are designed to help homeowners who are in distress. Our foreclosure defense lawyers can counsel you with regard to the best route to take with regard to mortgage modifications.

Federal House Authority (FHA) Mortgages

There are special programs set up by the Federal House Administration with regard to homeowners who lose their jobs and have financial difficulties paying their mortgages. The program for unemployed homeowners can excuse the homeowner from paying their mortgage for a period of up to one year. During this period of time, the bank will be unable to foreclose. Our foreclosure attorneys can help you prepare the necessary paperwork and make the application to participate in this program. We can also intercede with regard to the bank or financial institution to help you deal with your current financial difficulties.

Foreclosure Court Proceedings

Foreclosure lawsuits are started by the service of a Summons and Complaint by the financial institution’s attorneys on the homeowner. When a homeowner receives a Summons and Complaint they have between twenty and thirty days to take action to stop the foreclosure in its tracks. Our law firm, when defending a homeowner, immediately files between eighteen and twenty five affirmative defenses. We also regularly countersue (sue the bank) as part of the lawsuit. The squeaky wheel gets more grease is an expression. We stand out from the crowd when defending our clients in foreclosure lawsuits. We pressure the financial institutions to make mortgage modifications and/or withdraw their lawsuits. Legal action can be taken to tie the cases up in court any where from three to six years in the Metropolitan New York area.

In Foreclosure? Do Not Despair

The worst thing you can do if your bank threatens to sue you in foreclosure or serves a Summons and Complaint upon you is to do nothing! If you take no action to defend yourself in the court by submitting a written answer to the bank’s lawyer and to the court, you default. By defaulting, you give the financial institution a win. It is like lying down to die. Don’t do it.

If you are facing foreclosure, call us. We will offer you a free consultation. We will provide you with a road map as to what we can do to keep you in your home and defend you in the foreclosure lawsuit. We will give you a written itemized retainer which shows what we will charge you, the basis of our charges, and what we can do for you. Help exists. God helps those who help themselves. If you have foreclosure problems, call us. We are the law firm that can help you. The phones at our law office are monitored 24 hours a day, 7 days a week. We can be reached at 1-800-344-6431, 718-350-2802 or 516-561-6645.

Federal Government Moves Against Banks

December 16, 2013 by Elliot S. Schlissel

The United States government has brought several lawsuits against some of the largest banks in the world. The purpose of these lawsuits was to hold these banks accountable for their mortgage fraud practices. As a result of legal action, JP Morgan Chase entered into a settlement whereupon they have to pay $5.1 billion dollars to the regulator of Fannie Mae and Freddie Mac. This settlement dealt with allegations related to toxic mortgage securities packaged and sold by JP Morgan Chase which was one of the causes of the financial crisis in America. This settlement was part of a larger settlement involving a $13 billion dollar payment between JP Morgan Chase and federal and state officials with regard to the bank’s improper mortgage practices.

Bank of America

A federal jury has found Bank of America was responsible for mortgage fraud during the financial crisis. Prosecutors in the case are asking for approximately $850 million dollars in damages from Bank of America.

Banks Charged for Their Bad Behavior

It is important that the government, even though it is long after the fact, is taking the appropriate legal action to find banks responsible for their wrongdoing which created the mortgage crisis in America.

Homeowners Not Compensated

The settlement between the federal government, JP Morgan Chase and Bank of America allocates approximately $4 billion dollars in financial relief to homeowners who were victimized by improper mortgage practices. Considering the hundreds of billions of dollars homeowners have lost, this is a mere pittance. The government should have required a much larger fine from JP Morgan Chase for its improper mortgage actions and mortgage fraud.

Conclusion

The government’s action concerning illegal mortgage practices taken against large banks is too little too late!

Filed Under: Current Events, Foreclosure, Foreclosure Defense, Mortgage Modification Tagged With: defective foreclosure lawsuits, defective mortgages, financial crisis, foreclosure attorney, foreclosure crisis, foreclosure defense, mortgage modifications, New York foreclosure defense lawyers, predatory lending

Home Mortgage Loans Will Be Harder to Obtain in 2014! – Part I

December 3, 2013 by Elliot S. Schlissel

Starting on January 1, 2014, it will be more difficult for prospective homeowners in the United States to obtain mortgage loans. This is as a result of the passage of the Dodd-Frank Act. This statute was passed by Congress when the housing market melted down a number of years ago. After the housing meltdown, the federal government funded a bailout of large financial institutions. The Dodd-Frank Act is an attempt to regulate the lending industry. It is designed to protect consumer/taxpayers. In addition to the Dodd-Frank Act there is a Consumer Protection Act of 2010 which also goes into effect January 1, 2014.

“Under the new rules if [banks] want to lend correctly, by the book, they are going to [have to] leave out a lot of borrowers who would otherwise qualify for a mortgage” according to Jacob Gaffney, the Executive Editor of HousingWire.com, and HW magazine. It is estimated close to 50% of the borrowers who could obtain a mortgage in 2013, may not qualify in 2014. What do you do if you are thinking about getting a mortgage? It is suggested you obtain it in 2013.

The Consumer Financial Protection Bureau

Under the Dodd-Frank Act the Consumer Financial Protection Bureau (“CFPB”) is created. The Bureau became operational in July of 2011. The purpose of the CFPB is to prevent consumers from taking out mortgages which were beyond their ability to repay. This federal agency acts as a watchdog to see to it banks don’t start making loans to consumers they can’t afford.

According to Jacob Gaffney, the Consumer Financial Protection Bureau is a mistake. He recently stated “any company out there, especially the larger banks that have business operations outside of mortgages, are going to dwindle their mortgage operations because [the mortgage operations are] just too risky.” He further stated if there are fewer large lenders he anticipates there will be fewer mortgages offered.

Elliot S. Schlissel is a foreclosure attorney with more than 45 years of experience helping homeowners to keep their homes by fighting foreclosure lawsuits. He also helps clients obtain mortgage modifications and seeks out other alternatives to foreclosure.

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Modification Tagged With: foreclosure, foreclosure attorney, foreclosure defense, foreclosure defense attorneys, mortgage modification, New York foreclosure defense lawyers

Federal Government Seeks $863 Million from Bank of America For Defective Mortgages

November 20, 2013 by Elliot S. Schlissel

The United States government has gone into the Federal District Court in New York City requesting Bank of America pay $863.6 million dollars in monetary damages related to fraudulent activities concerning defective mortgages which were sold by Countrywide Financial Services in 2008. It is claimed Bank of America defrauded Fannie Mae and Freddie Mac, government controlled mortgage companies, with regard to the sale of loans purchased from Countrywide in 2007 and 2008. These mortgage loans generated $1 billion dollars in losses.

The Hustle

The case filed in United States District Court in Manhattan claims Countrywide operated a program called high speed swim lane or HSSL, nicknamed the “Hustle”. The Hustle program was set up to provide financial incentive for employees to make as many loans as possible. The program eliminated many underwriting requirements to ensure loans met minimum standards. The government’s position is penalties are necessary “to send a clear and unambiguous message that mortgage fraud for profit will not be tolerated” stated Judge Jed S. Rakoff, who presided over the trial in this matter. The amount of the penalties requested is based on the losses Fannie Mae and Freddie Mac incurred.

Elliot Schlissel, Esq. is a foreclosure attorney representing homeowners concerning mortgage modifications and foreclosure litigation.

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Modification Tagged With: defective foreclosure lawsuits, defective mortgages, financial crisis, foreclosure, foreclosure attorney, foreclosure crisis, foreclosure defense, foreclosure defense attorneys, mortgage modification attorneys, New York foreclosure defense lawyers, predatory lending

Losing Your Home

November 15, 2013 by Elliot S. Schlissel

When you have financial problems it can turn your life upside down. Financial problems cause anxiety and stress. One of the worst and most problematic financial problems is when you cannot make your mortgage payments. Failing to make mortgage payments over a period of 3 months or more can result in the financial institution that holds the mortgage on your home bringing a foreclosure lawsuit. Foreclosure is the bringing of a lawsuit for purposes of the financial institution reclaiming the ownership of the home. In the end, if the financial institution is successful in the foreclosure proceeding, they can evict the homeowners from their home.

Under Water Homes

Many homeowners bought their homes in the years 2002 through 2008 when home prices were rising. Many of the homes facing foreclosure today are worth less than the amount of money due and owing on the mortgages.

Fighting Foreclosure Lawsuits

A foreclosure lawsuit is initiated by the attorneys for the bank filing, in the County Clerk’s office in the County where the home is located, a Summons and Complaint in Foreclosure. Simultaneously with filing the Summons and Complaint in the County Clerk’s Office, the financial institution also files a Lis Penden which notifies anyone who conducts a title search the house is now involved in a foreclosure lawsuit. After the summons and complaint is filed with the county clerk’s office, the attorney for the financial institution hires a process server who serves the summons and complaint on the homeowners. The summons and complaint can be served personally on the homeowners, by nailing it to the door and mailing it to them, and/or by serving a person of suitable age and discretion at the homeowners residence or principal place of business. So, what do you do if you are served with a summons and complaint?

Foreclosure Defense Lawyers

There are attorneys who have extensive experience in litigating foreclosure lawsuits. Foreclosure lawyers can explain the process to you. They can investigate and see whether the financial institution that is suing you actually has the right to sue you. They can look into whether Truth in Lending Laws were complied with. They can investigate as to whether New York Laws concerning the assignment of mortgages and the execution of affidavits related to the foreclosure lawsuit have been properly undertaken. Homeowners are consumers and there are consumer protection laws in the State of New York and Federal Laws that protect homeowners from unfair practices by financial institutions.

Mortgage Modification

Many homeowners apply for mortgage modifications get rejected and assume that there is nothing that can be done. That is not correct. The first stage of a foreclosure lawsuit is the attendance by the financial institution and the attorney for the homeowner at a foreclosure court conference. At this time, pressure can be brought on the financial institution of cooperate and to act in good with regard to the underwriting of a mortgage modification application. Even if the homeowner has been turned down in the past, the homeowner can file a new mortgage modification at no cost as part of this process.

Procedural Defenses

There are a number of procedural defenses that can be raised in a foreclosure lawsuit by a sophisticated foreclosure defense lawyer. The writer understands that the homeowner actually received the money and purchased the house. This does not prevent the homeowners from protecting their legal rights under Federal and State consumer protection laws with regard to unfair banking procedures, fraudulent foreclosure practices and being defrauded regarding misleading documents.

Conclusion

Don’t despair. If your home goes into foreclosure, hire the right lawyer and you may be able to stay in your home longterm!

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Modification Tagged With: defective foreclosure lawsuits, foreclosure, foreclosure attorney, foreclosure defense, foreclosure defense attorneys, foreclosure proceedings, mortgage modification, mortgage modification attorneys, New York foreclosure attorney, New York foreclosure defense lawyers

New York’s Backlog of Foreclosure Cases

November 7, 2013 by Elliot S. Schlissel

The foreclosure process in New York, even under optimum circumstances, can take as long as three years. New York has enacted legislation regarding the robo-signing scandal that was uncovered in 2010. There are new court imposed rules affecting attorneys representing banks that seek to bring foreclosure lawsuits.

New Foreclosure Requirements

The attorneys for financial institutions must prepare an affidavit or swear under penalties of perjury that the foreclosure documents being submitted are accurate. Consternation by lender’s attorneys with regard to the accuracy of notes, mortgages and assignments of mortgages have caused delays as long as two years in the New York foreclosure process.

Lenders themselves must verify, when a foreclosure action is initiated, that the lender has the right to sue. This deals with the issue of standing. Notes and mortgages are sold as commercial paper. If the sale is not accompanied by an appropriate assignment from one bank to another, the second bank has no right to bring a foreclosure lawsuit.

The delays in foreclosure proceedings can cause interest and penalties to accrue against the homeowner.

Foreclosure Settlement Conferences

When a foreclosure lawsuit is initiated in the State of New York, the homeowner is entitled to attend a foreclosure settlement conference. At these conferences, judges and their staff seek to mediate foreclosure issues and assist homeowners in obtaining mortgage modifications. Unfortunately, the reality is many of the homeowners whose homes have gone into foreclosure could not afford, when they bought the homes, to pay the mortgages and due to the economic crisis facing America have even less capability today of paying their mortgages.

Elliot S. Schlissel, Esq. is a foreclosure defense lawyer representing homeowners throughout the metropolitan New York area who seek to fight foreclosure lawsuits.

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Modification Tagged With: defective foreclosure lawsuits, defective mortgages, foreclosure, foreclosure attorney, foreclosure defense, foreclosure defense attorneys, foreclosure proceedings, mortgage modification, New York foreclosure defense lawyers

Surging Foreclosures on Long Island

November 5, 2013 by Elliot S. Schlissel

As the mortgage crisis is fading in many parts of the United States, it is still heating up on Long Island. More than 1,300 foreclosure cases have been filed in the first eight months of 2013. This is more than a 50% increase during the same eight month period of 2012. Foreclosures have been increasing on Long Island even while there have been significant drops in foreclosure proceedings brought in other areas of the country.

Darren Blomquist, the Vice President of RealtyTrac, recently stated “we’re definitely seeing the Long Island area buck the national trend when it comes to foreclosure activity.” Long Island has more than double the national average of mortgages that are significantly behind on their payments. In July of this year, more than eight percent of all homes in Suffolk County and six percent of all homes in Nassau County were either in foreclosure or moving towards being sued in a foreclosure proceeding.

Why Foreclosure Persists on Long Island

There are numerous reasons why Long Island has had a higher level of foreclosures than the rest of the country. The foreclosure process is long and drawn out in the State of New York. Long Island was an area that had more than the national average of high risk home mortgage loans. Long Islanders also lost many high paying jobs. The new jobs that have been created in the past few years on Long Island tend to be minimum wage or low wage positions.

Mortgage Modification Problems

Long Islanders are facing similar problems to homeowners in other states facing foreclosure. The mortgage modification process does not work well. There are approximately 45,000 homes facing foreclosure on Long Island. For those families, the recent rise in the sales price of homes is not helping them out of their financial difficulties.

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Modification Tagged With: foreclosure, foreclosure attorney, foreclosure crisis, mortgage modification, mortgage modification attorneys, New York foreclosure attorney, New York foreclosure defense lawyers

New Law Helps Homeowners: Part II

October 4, 2013 by Elliot S. Schlissel

Standing to Sue

There is a key concept in New York law concerning standing to sue. If Bank 1 gives a loan to a homeowner and Bank 1 transfers or surrenders the mortgage to Bank 2, the homeowner is entitled to notice of the transfer. In addition, appropriate documents called an Assignment of Mortgage must be filed with the County Clerk’s office in the County in which the real estate is maintained. This applies to each and every subsequent transfer of the mortgage from one financial institution to another.

The failure to properly file all necessary documents or notify the homeowner disallows the financial institution at the end of the line from having standing to bring the lawsuit. In these cases, if the homeowner hires a foreclosure defense lawyer knowledgeable about these details, an affirmative defense of lack of standing can be placed in the answer to plaintiff’s complaint. This defense can be the basis for the dismissal of the lawsuit. My law firm has had numerous lawsuits dismissed because of lack of standing issues in the many foreclosure cases we have handled.

One of the additional purposes of this legislation is to clarify issues concerning who is entitled to sue a homeowner and how cases should proceed in a more orderly and logical manner, starting with the Foreclosure Court Conferences and thereafter with litigation.

Certificate of Merit

One of the purposes of this new statute is to eliminate the filing of misleading or fraudulent documents in foreclosure proceedings that has commonly been referred to as “robo-signing.” Chief Justice Jonathan Lipman of the New York State Court of Appeals, stated “the bill is crucial to ensuring the integrity and transparency of the foreclosure process especially for those New Yorkers impacted by the recent economic crisis.”

Certificate of Merit must be filed at the same time the foreclosure proceeding is initially commenced. The Certificate of Merit requires the attorney to attach to the Certificate any relevant documents concerning modifications, extensions, consolidations and assignments affecting the instrument and/or this indebtedness.

Missing Documents

In cases where the documents are missing or lost the statute allows the attorney or the representative of the plaintiff’s financial institution to file an appropriate affidavit which attests to all of the facts and veracity of those documents which are missing.

The Certificate of Merit specifically pertains to foreclosure lawsuits brought against owner occupied residences. This replaces the affidavits attorneys had been required to file under court administrative rules since 2010.

Legal Limbo

In the past, lenders have brought foreclosure lawsuits without the proper documentation that they were entitled to bring these lawsuits. This caused cases to be maintained on the court’s dockets for long periods of time tying up the legal system involved with foreclosures.

Christine Keef, a senior staff attorney with the Empire Justice Center, stated with reference to the new law “this is going to prevent homeowners from being stuck in this legal limbo in a time period when fees and costs continue to accrue on a loan, making it harder for the homeowner to afford a modification when one is offered.”

Elliot S. Schlissel is a foreclosure defense lawyer representing homeowners throughout the metropolitan New York area.

Filed Under: Foreclosure, Foreclosure Defense Tagged With: foreclosure defense, foreclosure defense attorneys, foreclosure defense lawyers, foreclosure proceedings, New York foreclosure defense lawyers

Refinancing Your Home

September 27, 2013 by Elliot S. Schlissel

The refinancing of a home involves the obtaining of a new mortgage to pay off an old mortgage. This is usually undertaken when you can secure better terms or a lower interest rate on the new mortgage. If you have built up equity in your home, you can refinance your home to pull some of the cash out. This can be done through a home equity loan or obtaining a line of credit to get cash out of the equity you have built up in your home. These funds can be used for home improvements, paying off credit card debts, funding college education for your children, and for other reasons.

Should You Refinance?

There are pros and cons for refinancing. You may get a better deal and lower interest rates, however, refinancing can destroy the equity you have built up in your home and create a new longer burden with regard to your mortgage payments. On the plus side, if you can refinance for a lower monthly interest rate, and minimize your closing costs, you may be able to put yourself in a better financial position on a month to month basis. Care should be taken upon refinancing to consider the long term impact on your life situation of undertaking this new indebtedness.

Elliot S. Schlissel and his associates are foreclosure defense attorneys. They have been assisting their clients regarding foreclosure and mortgage issues for more than 45 years.

Filed Under: Mortgage Modification Tagged With: New York foreclosure defense lawyers, refinancing

Foreclosure Dismissed: No 90 Day Notice

September 9, 2013 by Elliot S. Schlissel

Justice Yvonne Lewis, sitting in the Supreme Court of Kings County, recently dismissed a foreclosure proceeding brought by LaSalle Bank. LaSalle Bank brought a proceeding to foreclosure on a mortgage against Deanne Legier and Joyce Legier. The bank claimed both of the defendants had been served with legal process (a summons and complaint) at the real property’s address in Brooklyn. Deanne claimed she had never been served with the Summons and Complaint. She alleged that she did not reside at the address where the Summons and Complaint was served. Although Joyce was served, Joyce did not give Deanne a copy of the Summons and Complaint.

The Court, in its decision, found New York Real Property Actions and Proceedings Law section 1304 contained a requirement that a lender must comply with prior to bringing a foreclosure proceeding. This section of law required a lender to give a borrower 90 days’ notice before bringing a foreclosure proceeding on what was called a non-traditional mortgage.

Judge Lewis found that LaSalle Bank failed to show it provided the defendant’s with a Notice of Default before demanding payment in full on the underlying mortgage loan. Judge Lewis’ decision stated LaSalle Bank did not “unequivocally show compliance with section 1304 of the New York Real Property Actions and Proceedings Law.” They merely stated in their paperwork Joyce Legier failed to raise a triable issue of fact in a Summary Judgment Motion. The Judge, in her decision, stated LaSalle Bank had to comply with a condition precedent prior to bringing its lawsuit or making a Summary Judgment motion. She dismissed the foreclosure proceeding! Banks must fully comply with statutory compliance before initiating foreclosure lawsuits.

Filed Under: Foreclosure, Foreclosure Defense Tagged With: defective foreclosure lawsuits, foreclosure attorney, foreclosure defense attorneys, foreclosure defense lawyers, foreclosure proceedings, New York foreclosure defense lawyers

Stopping Foreclosure in Its Tracks

Federal Government Moves Against Banks

Home Mortgage Loans Will Be Harder to Obtain in 2014! – Part I

Federal Government Seeks $863 Million from Bank of America For Defective Mortgages

Losing Your Home

New York’s Backlog of Foreclosure Cases

Surging Foreclosures on Long Island

New Law Helps Homeowners: Part II

Refinancing Your Home

Foreclosure Dismissed: No 90 Day Notice

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