When homeowners buy a home, they usually have to obtain funds from a financial institution to consummate the transaction. The financial institution loans the homeowners money and takes out a mortgage on the home. The homeowners must sign a promissory note and that is secured by a lien on the house and the lien on the house is called a mortgage. A promissory note is a legal obligation for the homeowner to pay the debt.

The Mortgage Lien

A promissory note is an unsecured debt. However, the lien created by the mortgage on the home makes the note secured by the home. The mortgage gives the financial institution a security interest in the property. If the homeowner fails to pay the mortgage on a timely basis, the financial institution brings a foreclosure lawsuit to sell the home so they can be paid.

Foreclosure Defense Solution

There are many things that can be done to avoid a home going into foreclosure. Forbearance agreements, mortgage modifications and refinancing are some possible solutions for homeowners’ financial situations that caused them to fall behind on their mortgage payments. In addition, a homeowner can also go into a Federal Bankruptcy Court to file a bankruptcy. This stops the foreclosure from moving forward in New York State Supreme Court.

The law firm of Schlissel DeCorpo LLP has been helping families deal with mortgage and foreclosure problems for more than 30 years. We can be reached at 718-350-2802, 516-561-6645 or 631-319-8262 or by e-mail at info@sdnylaw.com.