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Deeds In Lieu of Foreclosure: An Imperfect Remedy

foreclosure attorney for homeownersDeeds in lieu of foreclosure are used by many attorneys and homeowners to short circuit the foreclosure process. I rarely suggest to a client to execute a deed in lieu of foreclosure. What a deed in lieu of foreclosure accomplishes is it allows the bank to take the home back quickly. It often leaves the homeowner with no credit, no assets, and no place to live! The reason given for executing a deed in lieu of foreclosure is it will eliminate a deficiency judgment.

Deficiency Judgment

Here is an example of what a deficiency judgment is: let’s assume there is a home worth $300,000, and a mortgage on the home in amount of $400,000. The house sells for $250,000 to a speculator at a foreclosure sale. There is a $150,000 deficiency which is still owed by the borrower. The deed in lieu of foreclosure prevents the bank from getting a deficiency judgment in the amount of $150,000.

This is the selling point used by many attorneys. It is usually a false selling point. Banks, generally speaking, do not pursue deficiency judgments in the Metropolitan New York area if the homeowner has no assets. Even if the bank desires to move forward for a deficiency judgment, the homeowner can simply file a Chapter 7 bankruptcy and eliminate the debt.

Fighting the Foreclosure Proceeding

When the homeowner decides to hire an attorney and fight the foreclosure proceeding, both the homeowner and his or her family will probably spend the next three or four years living in their home and not facing the problems of finding a place to live without credit and financial resources.

Deeds in Lieu of Foreclosure Won’t Always Work

A deed in lieu of foreclosure is usually only accepted by financial institutions where there is no equity in the property, and there are no liens or other mortgages attached to the property. In these types of cases, most banks will agree to a deed in lieu of foreclosure transaction.

If there is a second mortgage, monetary judgments on the property, mechanics’ liens, or other types of liens on the property, the bank will generally not agree to a deed in lieu of foreclosure transaction. In these situations they want the foreclosure sale to go forward. At the foreclosure sale, the second mortgage, the mechanics’ liens, and the judgments will be eliminated. The bank will obtain clear title to the property and not have to deal with the nuisances involved with other title impediments. In situations where there are second mortgages, mechanics’ liens, or other judgments or liens on the property, most banks will simply want to continue with the foreclosure process to obtain clear title.

New York foreclosure defense attorney IslandElliot Schlissel is a foreclosure defense lawyer helping homeowners stay in their homes throughout the Metropolitan New York area.

How Bank Lawyers View Foreclosure Cases

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

http://youtu.be/Gerutref7Cc

Elliot S. Schlissel is a foreclosure defense 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.  He can be reached for consultation at 516-561-6645, 718-350-2802 or by email to schlissel.law@att.net.

Missing Mortgage Payments

assistance for homeownersIt is common for homeowners on occasion to fall a month or two behind in paying their mortgages. Banks will usually not take any action in these situations. However, if you should fall three or more months behind on your mortgage payments, the bank who holds your mortgage may refuse to accept your mortgage payments in the future unless you pay the total amount of the arrears you owe including late charges and penalties. This is called accelerating the mortgage.

Notices By Banks

Banks will usually provide you with a late notice when you don’t make your mortgage payments. They also may send a letter to you describing options you have with regard to mortgage modifications, deeds in lieu of foreclosure, and short sales.

Negotiations With Lenders

If you are behind on your mortgage, it is recommended you try to negotiate with your lender. Your lender may be willing to enter into a forbearance agreement with you. Forbearance agreements are sometimes given to homeowners when they become disabled or when they suffer a temporary loss of employment. The attorneys at the Law Offices of Schlissel DeCorpo have extensive experience in negotiating with lenders for alternative remedies to be utilized by banks instead of foreclosure proceedings.

If you have a continued inability to make your mortgage payments you may receive a notice of default correspondence from your financial institution. Eventually you will be sent a letter by your lender giving you 90 days notice prior to the start of a foreclosure lawsuit. If you haven’t hired an attorney by this time, it is strongly suggested you hire a foreclosure defense lawyer when you receive this correspondence. The purpose of this letter is to give you one last opportunity to bring your mortgage current by making all back payments before you get served with a foreclosure Summons and Complaint. The foreclosure lawsuit will not start for at least 90 days. This gives you several months to try to rectify the situation with your financial institution.

Foreclosure Lawsuits

After receiving the 90 day notice, the lender may not actually sue you in 90 days. The lender may take several more months to obtain the necessary documentation and paperwork before initiating the foreclosure proceeding.

Bankruptcies

In some situations, filing either a Chapter 7 bankruptcy or Chapter 13 bankruptcy can be helpful to deal with your financial difficulties which put you into foreclosure. The Chapter 7 bankruptcy will eliminate all of your debts including your mortgage obligation. In a Chapter 13 bankruptcy you can catch up on your arrears over a 5 year period while making your current mortgage payments. Unfortunately, if you couldn’t afford your mortgage payments to begin with the Chapter 13 bankruptcy won’t work for you.

Experienced Foreclosure Defense Lawyers

The attorneys at the Law Offices of Schlissel DeCorpo have helped numerous New Yorkers stay in their homes, fight foreclosures and obtain mortgage modifications. Should you fall behind on your mortgage, give us a call and we will set up a free consultation to set up a specific plan to protect you and your family from being forced from your home.foreclosure defense lawyer in New York

More Homeowners Are Using Lawyers To Defend Them In Foreclosure Cases

mortgage modification and bankruptcy attorneys on long islandThe percentage of homeowners utilizing attorneys to appear on their behalf at mandatory foreclosure settlement conferences has been increasing. While legal representation of homeowners in foreclosure has been increasing, the number of cases being filed by banks to foreclose on homes is decreasing.

Caseloads Decreasing

In 2013, 46,700 cases were filed in New York State. Only 44,500 cases were filed in the State of New York during the 2014 calendar year. Foreclosure lawsuits are approximately 30% of all cases filed in the Supreme Courts in the State of New York.

The judiciary in the State of New York has a commitment to continue with foreclosure settlement conferences for the purpose of resolving foreclosure lawsuits without the need for further litigation. There are several reasons given for the reduction in foreclosure filings in New York State. Real estate prices have been going up, and less homes are underwater. In addition, the requirements to obtain new mortgages have been made more reasonable.

Specialized Court Parts and Court Programs Move Foreclosure Cases Faster Through New York Courts

There are a number of specialized court parts and court programs which have been established to ease the log jam of foreclosures in the courts in New York. In Nassau County there is a special court part which was established in 2013. In this part, banks can ask for expedited rulings in cases where the homeowners defaulted on the mortgages and didn’t appear in court or the homeowners had exhausted all settlement options. Up until now, about 800 cases have been resolved in this specialized part. In addition, Nassau County, Suffolk County and Bronx County have what are called servicer parts. In these parts, officials are authorized to approve mortgage modifications on the behalf of homeowners attending settlement conferences. A similar court part is envisioned to be brought into effect in Kings County and Queens County in the near future.

New Rules Concerning Foreclosures

Effective December 1, 2014, referees in foreclosure conference parts have the ability to consider alternatives such as loss litigation options involving loan modifications, deeds in lieu of foreclosure, and short sales. It is anticipated all these new activities will speed foreclosures through the court and assist homeowners in obtaining mortgage modifications.foreclosure defense lawyer in New York

Foreclosure Defense Facts: Keeping Your Home When Facing Foreclosure – Part III

foreclosure defense attorney on Long IslandYour Loan Modification Was Denied!

This is not the end of the world. To start with, even if your loan modification was approved, they may not have modified your loan to the point where you can afford to make the payments. If your loan modification is denied, you must litigate the foreclosure lawsuit. After submitting an Answer with affirmative defenses and countersuing the bank, you have an opportunity to make discovery demands upon the bank. You can request documents, financial records and other information from the bank with regard to the processes, procedures and what was involved in initiating the mortgage, having the financial documents moved from one bank to another, and bank policies and procedures. This will give you more information with regard to defending your lawsuit.

Banks can be sued within their foreclosure proceedings. This is called countersuing the bank. In the foreclosure lawsuit, the bank must present testimony and documentary evidence to support their claims. It is not uncommon for litigated foreclosure lawsuits to take three to five years to get through the court system.

Does Foreclosure Mean You Are Losing Your Home?

The answer to this is no! The foreclosure lawsuit is the start of a process by a financial institution to take back the home. If proper Answers with affirmative defenses and counterclaims are filed and discovery demands are made, the banks can be put on the defensive. No one is going to show up at your house and force you out into the street. The purpose of the foreclosure proceeding is for the bank to obtain a court order to sell your home. This is not an easy process. It takes a long time to get through the legal system. Using an experienced foreclosure defense lawyer can give you the security of knowing you will not be forced out of your home in the short run. Before a bank can take your home, they must get through your foreclosure defense law firm. I can tell you this is not an easy thing to do if you are represented by the right lawyer.assisting homeowners on Long Island

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.

United States Government Sues Deutsche Bank Over Improper Loan Practices

In May of 2011 the Justice Department filed a lawsuit against Deutsche Bank. They asked for hundreds of millions of dollars in damages from Deutsche Bank. The lawsuit alleges that Deutsche Bank improperly charged it’s customers for bad loans issued by the bank. The lawsuit was filed in the United States District Court in New York.

U.S. attorney Preet Bharara stated upon filing the lawsuit, Deutsche Bank “ignored every type of red flag and breached every duty of due diligence before underwriting thousands of federally insured mortgages.” “While the homes the defendant’s issued loans for may have been build on solid ground, the defendant’s lending practices were built on quick sand. Ultimately prudence was trumped by profit, and good faith took a back seat to good fees.”

A representative from Deutsche Bank stated the charges against them were “unreasonable and unfair”.  The governments complaint stated that more than forty thousand loans were issued by Deutsche Bank during a ten year period from 1999 to 2009. These loans have a face value of more than five billion dollars.  The government alleges that as a result of Deutsche Banks loan program, there was numerous defaulted loans which have cost the United States taxpayers more than one billion dollars.

New York Foreclosure Defense and Bankruptcy Attorneys

There are a variety of ways to fight foreclosures. They can be litigated in the State Court where the lawsuit is brought. Defenses such as predatory lending, defective foreclosure lawsuits, defective mortgages, violation of federal laws related to foreclosure and other real estate defenses can be raised in the state courts. Applications can also be made for mortgage modifications to entice the financial institution to back off on the foreclosure proceedings.

In addition to the state based actions, families whose homes are in foreclosure can file foreclosure related bankruptcies. The bankruptcies filed are either a Chapter 7 or Chapter 13 bankruptcy. These are two types of bankruptcy that apply to consumers. Filing the bankruptcy stops foreclosures from moving forward, ends debt collection and sometimes eliminates second mortgages. At the end of the bankruptcy the individuals filing can re-establish their credit.

Should you have questions as to the best route for you to take to save your home, call us, we’ll provide you with a free consultation and discuss your foreclosure defense options. You are on the Elliot Schlissel foreclosure blog and we thank you for visiting with us.

The Economy is Starting to Recover, but not for Home Builders

One of the most severely impacted industries in the United States has been the home construction industry. Stocks on the various stock exchanges have been recovering. Consumers have started to spend for consumer related items in stores. However, home builders have seen no recovery in their industry.

Foreclosures Flood the Market with Homes

There is a glut of homes on the real estate market for sale today. A significant amount of these homes have been taken back by financial institutions as a result of foreclosures. New home sales continue to slump. The huge number of foreclosed homes in the market place that are waiting to be sold have brought down the price of homes.

Home Builders Barely Holding On

New construction of single family homes has undergone a recession for more than six years. The few remaining home builders that have not filed for bankruptcy or gone out of business are barely holding on.

Higher Commodity Prices

In addition to the lack of consumer demand for new homes and the glut of foreclosed homes on the housing market, the cost of new materials has also been a negative factor for new home construction. Commodity prices of every type of building material have been increasing. All commodities must travel by truck to reach stores. The cost of gasoline acts as a tax on all commodities, causing their prices to go up.

Most home builders have scaled down their projects, reduced their employees and cut their costs. Instead of building new homes, the large majority of these small and mid- sized contractors are now involved in home remodeling. Instead of building a new house, they now redo the kitchens and bathrooms.

New York Foreclosure Defense

We can keep you in your home if it is foreclosed upon. The banks fear our law firm. The dozens of cases in which we have kept home owners in their homes for many years are a testament to our expertise in handling foreclosure defense matters.

We litigate all types of foreclosure related matters including, but not limited to, truth in lending violations, defective mortgages, bad faith, violation of federal and state laws, inadequate documentation of the foreclosures, failure to file the appropriate documents with the county clerks office, defective foreclosure lawsuits, predatory lending and other real estate related matters. We attend foreclosure court conferences for our clients. We utilize the court legal system and try to motivate the financial institutions to provide our clients with mortgage modifications.

In some circumstances, we file Chapter 7 and Chapter 13 bankruptcies on behalf of our clients. Foreclosure related bankruptcy filings result in automatic stays from the bankruptcy court, which stop foreclosure proceedings from moving forward. In addition, the filing of a bankruptcy can eliminate credit card debt and sometimes eliminates second mortgages. We also help our clients in re-establishing their credit after they file bankruptcy.

Feel free to contact us. We will provide you with a free consultation and discuss your foreclosure options. Thank you for stopping at our foreclosure defense blog.

Bad Neighbors Hurt the Value of Your Home

Bad Neighbors Hurt The Value Of Your HomeIf your neighbor is a slob, a sex offender or he maintains his property poorly, it can have a negative impact on the value of your home. Bad neighbors are individuals who lack the common courtesy, consideration and social values that are considered normal by the rest of the community. Business or governmental entities can also fall under the category of bad neighbors.

Neighbors Whose Homes are Foreclosed Upon

The largest single negative factor that drives down the value of single family homes is the foreclosure of other homes on the street. A study by the Massachusetts Institute of Technology has concluded that if neighbors homes are foreclosed on, it can bring the value of any home in the area down by as much as 27%. Federal Reserve Governor Joseph Tracy recently stated, “the growing inventory of the defaulted mortgages continues to weigh down any recovery in the housing market… problems in the housing market can impact on economic growth.”

Although homeowners don’t intentionally allow their homes to go into foreclosure, the fact that their homes are being taken back by the bank impacts on everyone in their locality. It is unfortunate that a family’s single largest investment can be negatively effected by other families in their area.

Conclusion

The foreclosure crisis hurts everyone in a community. It has a general impact on the home values of all homeowners in the surrounding area. It slows down economic growth, destroys equity and for the unfortunate families whose homes are foreclosed upon, it causes them to end up without a place to live.

Foreclosure Help

The Law Offices of Schlissel DeCorpo can help you with foreclosure issues. We can prepare mortgage modification applications and assist you with mortgage modification programs that fail to meet your needs. We litigate defective mortgages, defective foreclosure lawsuits, predatory lending and all other foreclosure and real estate related issues. We attend foreclosure court conferences for our clients. We draft and file foreclosure related bankruptcies. These bankruptcies can either be a Chapter 13 bankruptcy or Chapter 7 bankruptcy. At the end of the bankruptcies we assist our clients in re-establishing credit.

Our job is to stop foreclosures in their tracks. We have dozen of cases throughout the Metropolitan New York area pending and numerous satisfied clients. If you call us for a free consultation, we will meet with you at no charge and discuss your foreclosure options. Feel free to call us. We can help you! We look forward to seeing you again on our foreclosure blog.

Foreclosure Abuses

The Attorney Generals in all fifty states have been involved in litigation concerning the foreclosure practices at the largest banks in the United States. When these investigations by the State Attorney Generals were initially announced, homeowners who had been defrauded and abused by financial institutions they placed trust in were expecting justice.

Settlement Proposal

There has recently been a settlement proposal made to America’s largest banks. The Republicans in the United States Senate and House of Representatives feel that the Attorney Generals are asking much too much from the banks. The proposal includes needed reforms. It would require financial institutions and banks to stop foreclosure proceedings while a loan modification is pending. It will also be necessary for the financial institutions to eliminate red tape, simplify the loan modification process, properly fund it and speed it up.

The purpose of this settlement proposal is to shield the financial institutions from future lawsuits involving illegal, improper mortgage and foreclosure practices. Although it is a good idea to have one global settlement with the financial institutions, the settlement should not be too generous. Banks have been involved in numerous improper mortgage and foreclosure practices. They have filed false court documents to speed up foreclosures. They have utilized robo-document signers. They have brought foreclosure proceedings when mortgages have been paid. They have charged excessive fees. They have not provided loan modifications pursuant to the federal loan modification programs. They have had conflicts of interest and they have favored foreclosures over loan modifications.

Bank Misbehavior

Banks have gotten away with bad behavior, which has victimized consumers for much too long. The foreclosure crisis in the United States was caused by greed on behalf of the banks! A settlement concerning the foreclosure abuse by financial institutions should be of a nature as to reform the banking industry regarding mortgage modifications, mortgage and foreclosure practices and rectify the bad past practices.

Foreclosure Defense for New Yorkers

We provide foreclosure defense for New Yorkers. We assist New Yorkers with mortgage modifications and mortgage modifications programs that fail. We file Chapter 7 and Chapter 13 bankruptcies on behalf of our clients. We explain why bankruptcies should be filed to our clients. We deal with re-establishing credit when necessary. We can stop foreclosures from moving forward. We attend foreclosure conferences in the state courts in New York for our clients. We provide foreclosure defense and litigate defective foreclosure lawsuits, predatory lending, real estate issues, bad faith by financial institutions and defective mortgages. We maintain a foreclosure blog which is updated on a weekly basis. Call us should you have foreclosure or bankruptcy problems. We can help you!

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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