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The prospect of foreclosure leaves many homeowners feeling frightened, helpless, and alone. The Lauterbach Law Firm understands just how devastating going through a foreclosure can be. Your home, after all, is more than just a residence – it’s the place where you and your family have built your lives. Consulting with an experienced attorney as early as possible can make a huge difference. Our firm understands the significance of this legal matter. We are dedicated to exploring all legal means in pursuit of saving your home. Even if you are already in the foreclosure process, we can help. Contact The Lauterbach Law Firm for a consultation to discuss your rights and your legal situation.
If your mortgage lender sues you and foreclosure is a real possibility, our firm will take preliminary steps, including serving an answer where we will:
Under New York law, every foreclosure lawsuit involving a residential “home loan” where the defendant lives in the property must first have parties enter into the Foreclosure Settlement Conference. This allows the homeowner to apply for a loan modification and forces the bank to review the homeowner’s financial ability, determining if the homeowner qualifies for a government loan modification program or one provided by the bank. A loan modification takes the existing mortgage payment structure and modifies it. This can include a lower interest rate, an extension of the loan term, and, most importantly, a lower monthly payment. Whichever program is offered, a government program or a bank’s, a fully executed modification should lead the lender to discontinue the foreclosure action and vacate the lis pendens.
Bankruptcy stops foreclosure immediately. Even if your house is up for sale the next day, filing for Bankruptcy will immediately place an Automatic Stay on any and all lenders and creditors’ pursuit of debt. This includes foreclosure, correspondence, and more. After filing, the bankruptcy court’s local Loss Mitigation Program provides the means for you, the homeowner, to apply for court-supervised negotiation with your lender. This process allows a homeowner to apply for a loan modification and forces the bank to review the practicality of a government or bank loan modification program. If this doesn’t work, there are ways in which bankruptcy itself can save your home, especially through Chapter 13 and sometimes Chapter 7.
In some cases, 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. This will impact your credit, but not to the extent of bankruptcy or foreclosure. Short sales are not guaranteed. The lender must approve the short sale. There are quite a few factors that go into the decision, and having an experienced attorney is important. These can include the mechanic’s liens, outstanding homeowners or association dues, tax liens, and liquid assets that can cover the shortage of the loan. Furthermore, many short sales carry a stipulation that states that if the debtor’s financial situation changes, he or she could be held accountable for the shortage as well. It is important to discuss this with an attorney.
Residential foreclosure actions on Rockland County property are brought in Rockland County Supreme Court in New City. Settlement conferences under CPLR 3408 are held there before a court attorney referee assigned to the foreclosure part.
The deadline depends on how you were served. Personal delivery generally gives you twenty days to serve an answer, while other methods of service generally give you thirty days. Missing the deadline can result in a default, so the date of service should be reviewed with an attorney immediately.
Do not sit idly by and watch your house disappear. There are options. Contacting an attorney is a good first step. The Lauterbach Law Firm has decades of experience helping clients in the Lower Hudson Valley keep their homes while they explore their options for the future. Our firm is dedicated to the future of our clients. If you are facing foreclosure and need an effective legal team to help you through these tough times, contact The Lauterbach Law Firm.
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