Foreclosure
Defense
Immediate Quality Legal Foreclosure Advice
When faced with the need for a Foreclosure Defense, the worst thing a property owner can do is ignore the issue and believe doing nothing will delay the process. Immediate action is necessary.
In recent years, many New York homeowners have faced a situation in which they have fallen behind in making mortgage payments. This may be due to illness, job loss, decreased wages, or other financial circumstances. Other causes are being locked into a high-interest rate adjustable mortgage or other subprime loans. The lender often seeks legal action when a homeowner begins sliding several months behind in making mortgage payments. This is followed by the homeowner receiving a court summons that outlines the intent to foreclose on their home and take their property away.
Seeking immediate, quality legal advice about a foreclosure defense is key. The attorneys at Lester Korinman Kamran & Masini, P.C. offer this help. They have the experience, knowledge of the process, and proven ability to act quickly to turn the situation around on your behalf. See the box below to request your confidential FREE CONSULTATION.
Understanding The Process
At Lester Korinman Kamran & Masini, P.C., we fully understand and know how to navigate the foreclosure process. We have helped countless clients to defend against it. We do all we can to make you feel at ease while we work tirelessly on your behalf to explore various options and recommend and guide you through an appropriate course of action to achieve a best-case outcome.
The foreclosure process in New York State is subject to a precise timeline, which makes immediate action on the property owner’s part essential, as is obtaining proper legal advice about the specific steps to take and the timetable in which to take them.
Consider These Timeframes
A late fee is usually applied two weeks after you miss a mortgage payment, and the lender may attempt to contact you. The lender must send a foreclosure notice if you own and occupy the property as a primary residence, which provides a 90-day window for resolving the issue, i.e., for you to obtain an agreement with the lender as to your making good on missed payments. No response on your part will mean imminent foreclosure.
The clock keeps ticking. Once the mortgage is 46 to 60 days in arrears, the loan servicer may send you a “breach” or “demand” letter advising which terms of your loan have been broken and requiring payment in full, including any late fees, within 30 days.
At the 90-day mark, the foreclosure process officially begins, meaning full legal action will be taken against you, such as recording a formal notice of foreclosure with the Court and serving you with a summons and complaint. If the complaint is not answered in a timely fashion, property loss will eventually ensue.
Within 60 days of the summons being served, the Court schedules a settlement conference between the lender and homeowner. If a settlement cannot be reached, foreclosure proceedings will continue to allow you the opportunity to be heard, including any legal defenses that you may have. If your defenses are unsuccessful, a foreclosure judgment is entered, and a foreclosure sale is scheduled. Foreclosure sales in New York State are conducted at public auction, where the homeowner loses all rights to regaining ownership. However, a homeowner has the right to redeem a mortgage in arrears right up until the date of a foreclosure sale.
The knowledgeable attorneys at our firm do all in their power to defend you against foreclosure so you may retain ownership of your home. In addition, our highly experienced, diligent attorneys thoroughly review your mortgage documents for possible legal errors or omissions to forestall foreclosure.
We reassure and assist you in taking appropriate action if your bank or mortgage lender uses aggressive practices or if you become inundated with letters from various so-called rescue services exhorting you about the possible loss of your property, making unrealistic promises about speeding up a settlement with the bank or falsely guaranteeing results.
And above all, we tenaciously advocate on your behalf with your lender and work closely with you to seek an alternative solution, such as a loan modification or a short sale – see more information below.
Another option, bankruptcy, can be a viable solution to consider when faced with foreclosure, to release you from personal liability for your debts and enable a fresh start. Please see this website’s Practice Areas– BANKRUPTCY section for additional information.
Be sure to contact us at Lester Korinman Kamran & Masini, P.C. as early as possible, well before the clock starts ticking or the process unravels into the irreversible loss of your home. See the box below to request your confidential FREE CONSULTATION.
Loan Modification
A loan modification can be a viable, early solution to avoiding foreclosure, enabling an owner to keep their home or other property. Unlike a refinance, a loan modification doesn’t pay off the current mortgage and replace it with a new one. Instead, as its name implies, it is an agreement to modify the terms of the loan, allowing the borrower to resolve payment issues before they spiral out of control.
It makes a significant difference to have the firm of Lester Korinman Kamran & Masini, P.C. on your side. We have extensive experience in this arena, having dealt with numerous significant lenders on behalf of our clients to obtain loan modifications.
It’s Complicated
It’s important to realize that orchestrating a loan modification is complicated and involves many moving parts. It calls for meticulous and expert attention to every detail. In addition, it requires collecting and processing a plethora of necessary documentation to substantiate that you qualify for a modification, all aspects of which our firm handles on your behalf.
The best time to consider a loan modification is when you first become concerned about not being able to meet your mortgage obligations, before you fall behind in payments, and well before receiving a foreclosure notice. You and your mortgage lender can benefit from a loan modification, as it can prevent you from losing your home and help your lender avoid loss of equity and a long-term cash flow stream. The sale of a property at auction, typically at a below-market price, is an undesirable outcome for both parties. However, if you are further along, contact the knowledgeable attorneys at Lester Korinman Kamran & Masini, P.C. In many cases, loan modifications can still be achievable even after receiving a foreclosure notice.
The typical loan modification process calls for dealing directly with the mortgage lender to modify the loan in the best way possible to your benefit. Therefore, we complete and submit the application package with all necessary supporting documentation to the lender on your behalf and tenaciously follow up with and urge the lender to reach the most favorable, timely decision possible for you.
Many Possible Options
There are many possible options. For example, the interest rates of the mortgage may be reduced or changed from a floating rate to a more favorable fixed rate. The amount of the principal owed may be reduced, as can late fees or other penalties. Another option is capping the monthly payment amount due based on a percentage of household income.
The amount of the monthly payment due may be capped to a percentage of household income. In addition, the term of the mortgage may be lengthened or the principal placed into a forbearance plan.
In addition to the traditional direct-to-lender approach, government-sponsored loan modification programs became available in recent years, which broadened the availability of loan modifications. These loan modifications, either through government or in-house programs, offer monetary incentives to lenders who assist struggling homeowners seeking to resolve their financial difficulties through this method. Lenders are encouraged to act early and efficiently to help minimize the damage to the homeowner’s credit status.
We Understand
We understand that obtaining a modification may seem like an overwhelming task. That’s why we do our utmost to pursue a loan modification with the most favorable terms possible — and as quickly as possible. Contact Lester Korinman Kamran & Masini, P.C. to request your confidential FREE CONSULTATION.
Short Sale
An alternative to foreclosure, a short sale is when a homeowner in financial distress sells his or her property for less than the outstanding balance due on the mortgage, and requires that the lender agree to accept less than the amount still owed, the remaining balance is forgiven, thereby releasing the lien against the home and usually the borrower from liability for the loan.
Whether you have a buyer in mind or a real estate agent advising you to consider this option, the first step should be to seek quality legal counsel to discuss how it works, and to ensure that the process is handled properly and to your benefit. Contact us to request your confidential FREE CONSULTATION.
Many Factors To Consider
How do you know if a short sale will serve you better than a foreclosure? There are many factors to consider, all of which the experienced attorneys at Lester Korinman Kamran & Masini, P.C. will discuss and evaluate to determine the solution that works best for you. It’s essential to fully understand the pros and cons of a short sale versus a foreclosure in the context of all relevant New York laws and how they might impact a foreclosure versus a short sale. The capable attorneys at Lester Korinman Kamran & Masini, P.C., who have negotiated many short sales with various lending institutions throughout New York, will help you do just that.
There are situations where a short sale may be the lesser of two evils. A short sale can help you avoid months of stress, embarrassment, annoyance, and fear. Short sales are private, as opposed to foreclosures, which are public. You might also avoid being held responsible for any deficiency balance —and avoid being subject to a deficiency judgment if the property were to sell for less than the balance of the loan. The attorneys at Lester Korinman Kamran & Masini, P.C. will explain and help negotiate with the lender to avoid this, which occurs if the lender agrees to release its lien in exchange for the short sale proceeds but does not release you from personal liability on the debt.
Will A Lender Agree?
While a foreclosure is expensive and time-consuming, often taking over a year to complete, a short sale is relatively quick and cost-saving so that it may appeal to a lender. In addition, with a foreclosure process underway, lenders must carry the costs of taxes and property insurance, which must be maintained even when a homeowner isn’t making mortgage payments, from the time of default until the property is foreclosed on and resold. Our firm’s skilled attorneys can advocate on your behalf from the advantage that the lender can avoid this expense by agreeing to a short sale instead and helping negotiate the specifics of the lender’s agreement.
How Much?
Homeowners often want to know how much their lender will accept in a short sale. For example, if the outstanding mortgage is $350,000, will the lender accept just $300,000? Unfortunately, there’s no easy one-size-fits-all answer. Each situation is different. This is where the expertise offered by Lester Korinman Kamran & Masini, P.C. comes in, helping you to understand the pricing process from all sides better.
The lender will generally compare the offered price to the amount they would expect to gain at auction if they instead foreclosed on the home. Buyers at foreclosure auctions consider the property’s fair market value and bid considerably lower, expecting to pay much less. Lenders are aware of this. The bottom line is that if the short sale offer reflects the property’s current fair market value or is close to it, the short sale may be approved by the lender, knowing the auction price will likely be lower. Scroll down to request your confidential FREE CONSULTATION.
Free Consultation
There is no fee to explore your options with Lester Korinman Kamran & Masini, P.C. We will ascertain whether or not you need legal help and explain your options as your case progresses.
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