How to Defend Yourself Against a Foreclosure

How to Defend Yourself Against a Foreclosure

If you are at risk of losing your home, it is important that you retain the services of an experienced New York real estate attorney. Our legal team at the Zimmet Law Group, P.C. understands that there is no time to waste when it comes to serious financial matters such as a foreclosure. To learn how you can defend yourself against a foreclosure, continue reading.

What are some defenses against foreclosure?

When a mortgage lender takes legal action against you and a foreclosure is a strong possibility, our firm will take several preliminary steps including the following:

  • Counterclaim to assess their right to your mortgage
  • Attempt to get you into a loan modification program
  • Defend you against the foreclosure
  • Work to dismiss the action by serving the appropriate motions and cross-motions
  • Request all documents regarding the mortgage
    • Such documents will include the chain of title, payment history, and more

Can I apply for a loan modification?

When a foreclosure lawsuit pertains to a residential property in New York, this requires parties to enter into the Foreclosure Settlement Conference. The homeowner may apply for a loan modification once doing this. This will force the bank to review the homeowner’s ability to determine if they qualify for a government loan modification program or a loan provided by the bank.

Requesting a loan modification may lower your interest rate, extend your loan term, and lower your monthly payment. If all goes well with your attorney, the end result should be a dismissal of the foreclosure action.

Should I declare bankruptcy?

When you declare bankruptcy, you will place an Automatic Stay on all lenders’ and creditors’ pursuit of debt. You can do so at any point before the sale of the home. Next, you can apply to the Loss Mitigation Program of the Bankruptcy Court which will allow you to apply for a loan modification. Applying for a loan modification will force the bank to review the practicality of a government or bank loan modification program. Filing for bankruptcy may even save your home.

What is a short sale?

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 this impact will not be as severe as filing for bankruptcy or foreclosure. It is important to keep in mind that a lender must first approve the short sale. There is no guarantee that this will happen.

Contact Our Firm

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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