Foreclosure Defense in NY

Foreclosure Defense in NY

Becoming a homeowner is something that many people are very proud of. It often takes years to save up enough money for a down payment on a home. With that said, the idea that you may not be able to continue making payments on your home and may ultimately lose it can be impossible to comprehend. What a lot of people don’t realize is that there are ways to stop a foreclosure in its tracks. In fact, when a homeowner files for bankruptcy in New York, a foreclosure action or sale will be stopped immediately. This is because the automatic stay requires that all creditors and mortgage lenders cease collection efforts as soon as bankruptcy is filed.

That being said, not everyone who is facing foreclosure does choose to file for bankruptcy. In the state of New York, all residential foreclosure cases have to go through the Foreclosure Settlement Conference before the actual foreclosure can take place. The settlement process allows the homeowner to submit an application for a loan modification, which can adjust the current loan to help the homeowner make payments. It is important to be aware that a loan modification is different from a mortgage refinance, which is where the homeowner will be able to search for a new loan instead of making adjustments to their current loan.

Eligibility for a Loan Modification

At a Foreclosure Settlement Conference, the bank will be required to review the financial ability of the homeowner in order to determine whether they qualify for a Government loan modification or a loan modification program through the bank itself. Loan modification applications require homeowners to provide a lot of documentation, including:

  • Financial statements
  • Bank statements
  • Paystubs from all wage earners in the family
  • Tax returns
  • A current utility bill that proves your residence in the home
  • A Hardship Letter that explains why the homeowner is unable to pay the current mortgage

The primary goal of a loan modification is to lower interest rates and extend the term of the loan, which will ultimately result in a lower monthly payment. If you are concerned about losing your home in a foreclosure, it is important to consult with an experienced attorney as soon as possible.

Zimmet Law Group, P.C. is an experienced team of attorneys guiding clients through matters of estate planning and administration, divorce and family law, real estate, commercial litigation, business law, bankruptcy, and landlord-tenant law. If you require the services of an effective New York City attorney, contact our firm today to schedule a consultation.

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