Ă—

How to Defend Yourself Against a Foreclosure

How to Defend Yourself Against a Foreclosure

If you are going through the foreclosure process and are in danger of losing your home, you are most likely feeling the intense pressure this process tends to pile on. This is why it is so important that you hire an experienced attorney today. There is no time to waste when it comes to a financial matter as serious as a foreclosure. If you find yourself in this situation, here are a few questions you may have:

What are some defenses against foreclosure?

If your mortgage lender sues you and a forclosure is a strong possibility, an experienced firm can take several preliminary steps, including serving an answer which will:

  • Assert defenses against the foreclosure
  • Assert counterclaims to asses their right to your mortgage
  • Serve the appropriate motions and cross-motions to dismiss the action
  • Request all documents regarding the mortgage, including the chain of title, payment history, and more
  • Work to get you into a loan modification program

What is loan modification?

In New York, foreclosure lawsuits pertaining to a residential property require parties to enter into the Foreclosure Settlement Conference. Once doing so, the homeowner may apply for a loan modification, which forces the bank to review the homeowner’s ability to determine whether or not the homeowner qualifies for a government loan modification program or a loan provided by the bank. Essentially, requesting a loan modification may lower your interest rate, extend your loan term and lower your monthly payment. If all goes as it should, with a trusted attorney the end result should be a dismissal of the foreclosure action.

Should I declare bankruptcy?

By declaring bankruptcy, you will immediately place an Automatic Stay on any and all lender’s and creditor’s pursuit of debt–and you can do so at any point before the sale of the house. After filing for bankruptcy, you may then apply to the Loss Mitigation Program of the Bankruptcy Court. From here, you should be allowed to apply for a loan modification. This action will also force the bank to review the practicality of a government or bank loan modification program. Bankruptcy itself may even save your home–more specifically through Chapter 13 and sometimes Chapter 7.

What is a short sale?

Sometimes, a lender will agree to a loan payoff that is less than the value of the mortgage by the owner’s sale of the home. While this will still have an impact on your credit, it will not be as severe as filing for bankruptcy or foreclosure. However, keep in mind that a lender must first approve the short sale, and there is no guarantee the lender will do so.

Contact our New York firm

The Lauterbach Law Firm is proud to serve clients throughout Rockland County who are faced with legal matters related to estate planning, real estate, foreclosure defense, landlord-tenant law, business law, and criminal defense. If you require the services of an experienced team of attorneys, contact The Lauterbach Law Firm today to schedule a consultation.

Read Our Latest Blogs

  • When Should I Start Creating an Estate Plan?
  • Why do I Need an Attorney to Write my Will?
  • What is the Role of a Power of Attorney?