New York Foreclosure Questions
Stop Foreclosure in New York with the Help of a Foreclosure Lawyer
When homeowners fall behind on their mortgage payments, they run the risk of losing their homes. No matter the reasons for your financial difficulties or inability to meet your mortgage servicing obligations, you need to take proactive action to consumer protection for your rights and put yourself in the best position to keep your home. A New York foreclosure defense attorney can help defend you against the foreclosing party and stop foreclosure.
Regardless of whether you are merely afraid that the bank will start foreclosure proceedings, or you are already deep into a foreclosure lawsuit, you need dedicated New York foreclosure lawyers who can ensure that you understand your loan documents, real estate law options and rights, and who will fight to protect those estate law rights to avoid foreclosure. When bank firms get new files assigned to them, they are divided into 3 tiers that determine how prepared they need to be to handle the real estate case for loss mitigation:
1. Pro-se (no lawyer)
2. Represented by a lawyer or foreclosure consultant
3. Represented by an experienced law firm like Jonathan S. Koren, P.C.
That’s why when our clients' friends and family members need foreclosure defense assistance, they refer them to our firm!
Why Call a Foreclosure Lawyer Now for Foreclosure Defense?
The sooner an attorney intercedes, the more flexibility and leverage you have in your negotiation. This is because defaulting on legal papers makes it difficult to assert your defenses later in the litigation process. If you have already defaulted, we may be able to enlarge such time under appropriate circumstances. If you have not been served with any legal papers, you should also hire a lawyer because the bank is more pliable in negotiations while they haven’t spent any money on attorneys and their costs out-of-pocket costs are still low.
Jonathan S. Koren, P.C. has 20+ years of legal experience fighting for the rights of homeowners, protecting your home.We are also not only counselors and advisors, but battle-proven litigators. By developing our reputation as fighters, having handled thousands of foreclosure cases, we have achieved tremendous results for our clients both at motion practice and in settlement negotiations. When banks and loan servicers go up against Jonathan S. Koren, P.C., they know that we always aggressively fight for our clients’ rights and are willing to go to trial if we have to. Therefore, we are able to get our clients the maximum benefit and leverage negotiations in their cases.
With Jonathan S. Koren, P.C., you can trust our New York foreclosure defense attorneys to work tirelessly protecting your and your family’s home. Contact us now at 718-819-1674 for a free consultation to find out more about your best legal options for fighting foreclosure.
What Should I Do When I’m Notified of a Foreclosure Lawsuit in New York?
If you receive a complaint and summons for a foreclosure lawsuit, it is critical that you seek the services of an experienced foreclosure defense attorney in New York. Even though the bank has filed a lawsuit, there may still be time to defend your legal rights and resolve your mortgage issues out of court through a loan modification.
Banks and Mortgage Servicers
Jonathan S. Koren, P.C. has a proven track record of success in defending our clients against the efforts of various banks. Some of the banks we have extensive experience with:
Call An Experienced Foreclosure Defense Attorney in New York
Once you receive a complaint and summons for a foreclosure lawsuit, you have a limited period in which to file a response to the complaint. Your response to the complaint will admit or deny each of the allegations contained in the bank’s complaint, or state that you have insufficient knowledge to admit or deny the allegations. If you admit to an allegation, the court will accept it as fact. This response is also the opportunity to assert any legal defenses you may have to the lawsuit, along with any legal claims you may have against the bank or mortgage holder.
If you fail to file a valid response to the complaint, all allegations within it will be considered true, and the court will enter a default against you. Once a default is entered, it is difficult to stop the foreclosure process. This is why it is critical that you seek the services of a knowledgeable foreclosure defense attorney who can review your case and assert any defenses or legal claims on your behalf to try and stop the foreclosure.
What are the Common Defenses to Foreclosure in New York?
New York is a judicial foreclosure state so mortgage loan holders are required to go to court to initiate a foreclosure proceeding. This means that you will have an opportunity to present to a court any defenses and objections to the bank’s attempts to foreclose on your home. Depending on the facts and circumstances of your case, loan documents, etc., there may be reasons and special protections that could lead the court to delay or stop a foreclosure of your home.
Some of the more common foreclosure defense strategies that our New York foreclosure attorneys have frequently argued include:
Legal defenses can protect your home from foreclosure actions
Banks and mortgage companies do not always follow the required steps for issuing, assigning, or pursuing foreclosure of mortgages. They also do not always send the borrower compliant predicate notices as required by law before initiating the foreclosure. That’s why it’s critical to have an experienced New York foreclosure defense attorney who can thoroughly review your case to ensure that your rights and the law are not being violated – to prevent the loss of your home by putting an end to judicial foreclosure proceedings and helping in negotiations with the bank. Stop foreclosure on your New York home by contacting a compassionate and aggressive foreclosure defense attorney today.
Can Refinancing Stop Foreclosure?
If you are facing foreclosure, it may be possible to refinance in order to stop foreclosure. Refinancing when you already are facing foreclosure can be difficult, since you have likely already missed multiple mortgage payments, and thus have damaged your credit. Many lenders use guidelines from Government-Sponsored Enterprises like Fannie Mae and Freddie Mac to allow their ability to sell loans when needed to other GSE lenders, and GSE guidelines do not permit foreclosure refinancing primarily because of missed mortgage payments and a suppressed credit score.
Your best lenders to seek a foreclosure refinance are portfolio lenders that hold the loan and do not sell to GSE lenders or hard money lenders. Any lender willing to refinance a loan in foreclosure is going to want to see stable income and enough equity in the property to secure their position. Your interest rate will also be very high and likely much higher than your current interest rate. If you are successful in finding a lender to refinance with, you will secure a new loan to pay off your existing loan, and your foreclosing lender will be paid the proceeds and stop the foreclosure.
Can a Loan Modification Help You Avoid Foreclosure?
Typically, most homeowners who have trouble making their mortgage payments will apply for a loan modification. In a loan modification, the bank or mortgage loan holder agrees to modify the terms of the loan so that the monthly payments are lowered, becoming more manageable for the homeowner.
A loan modification can alter multiple aspects of the mortgage loan, including:
Ø Reducing the principal balance (either through a lump-sum payment or a discharge by the bank)
Ø Reducing the interest rate
Ø Changing the interest rate from an adjustable rate to a fixed rate
Ø Extending the term of the loan
If approved for a loan modification, the bank will offer you a trial period, during which you must make a series of modified payments. At the end of the trial period and assuming you have no title issues that arise, the bank will provide you with a final modification
What Is a “Short Sale”?
A short sale is a sale of property where the proceeds of the sale will fall short of the debts secured by the property. A short sale customarily occurs when all the mortgagees for a property agree to accept less than the amount owed to them.
A mortgagee may sometimes agree to a short sale when there is mortgage insurance available to pay the remaining balance on the mortgage. A short sale does not necessarily release a homeowner from his or her obligation to the bank. If there is still a balance on the mortgage after the sale, the homeowner still owes that amount to the bank, unless the bank agrees to discharge any shortfall between the short sale price and the balance on the mortgage.
Short sales have become an increasingly popular alternative to foreclosure since the bank does not need to undertake the costs of maintaining and selling a home on which it has foreclosed. In addition, the negative impact to the homeowner’s credit does not last as long as the impact caused by a foreclosure, since a homeowner who obtains a short sale is considered to have acted more responsibly than a homeowner who allowed a foreclosure.
If any outstanding mortgage balance is discharged by the bank, the homeowner may be subject to pay income tax on that amount, unless the property was their primary residence.
How Long Does Filing a Foreclosure Complaint Take in New York?
The length of foreclosure proceedings depends on a number of factors, including whether negotiations for an alternative resolution are taking place between the homeowner and the bank, whether the homeowner is defending against a foreclosure lawsuit, or even the schedule of the court.
Although a foreclosure can be completed in as little as six months, if defended, New York has an average foreclosure timeline of two years.
Because foreclosures take so long in New York, homeowners often have ample opportunity to put their personal finances in order, cure the default on their mortgage, or work with the bank for an alternative resolution, such as a refinancing, loan modification, short sale, or deed in lieu of foreclosure.
How Can a New York Foreclosure Defense Lawyer Help?
If you believe you may soon be facing foreclosure, or if you have already received notice of foreclosure, our New York foreclosure defense attorneys are ready to work to help you to delay or even stop the foreclosure process.
Our New York defense lawyers can advise you as to your eligibility for alternatives to foreclosure, including a loan modification to bring you current. We can negotiate with the bank to seek an alternative resolution that works for both you and the bank.
Our foreclosure attorneys can also protect your rights. Banks and mortgage servicers frequently violate the law when it comes to the mortgage process or foreclosure. When violations of your rights and the law occur, our foreclosure defense attorneys can assert these violations to bring the bank to the negotiating table, or as a claim in order to stop or mitigate the impact of a foreclosure lawsuit.
Why Choose a New York Foreclosure Defense Attorney at Jonathan S. Koren, P.C.?
If you believe your property is about to be foreclosed upon, or if you are already in the middle of a foreclosure lawsuit, let an experienced foreclosure defense lawyer fight for you.
When you hire Jonathan S. Koren, P.C., you get a team of legal and financial professionals who are prepared to take your case to trial and to work to win. The banks know that our firm is prepared to fight for you all the way to trial. This gives us tremendous bargaining power when trying to negotiate a resolution of your mortgage issues. A firm that is prepared to battle the banks every step of the way means you get to stay in your house that much longer – giving you time to overcome your financial difficulties and resolve the arrearages on your mortgage.
Our practice is focused on helping individuals and businesses struggling with unmanageable debt. We have experience with numerous debt-relief strategies. We can help you defend against foreclosure, and we can also help you and your family achieve total financial health.
We provide our services in all counties of New York. You can call our office today at 718-819-1674 for a free consultation so that we can review and explain the merits of your case and develop a strategic plan specific to your needs and situation.