Nassau County Foreclosure Defense
Nassau County Foreclosure Defense cases have several steps. Knowing the procedure of the foreclosure case can dictate which steps should be taken at any particular moment throughout the course of the litigation. The following is a quick summary of the options that may be available in a Nassau County Foreclosure Defense case after the summons and complaint have been served on the home owner.
Gathering information necessary to the defense of the action is probably the most overlooked and underrated step that both pro-se litigants and attorneys make in defending foreclosures. Simple research such as ordering a foreclosure search should be part of the due diligence undertaken prior to litigating. Other methods such as discovery devices can be used to gather additional information during the pendency of the foreclosure litigation.
Responsive pleadings including affirmative defenses and counterclaims where applicable should be filed in a timely fashion. Responsive pleadings in foreclosure actions will often depend greatly on the information gathered about the property and circumstances surrounding the loan origination and servicing.
Motion practice can be used as part of a foreclosure defense strategy. Motions can accomplish several goals that can be of great importance to the preservation of the home owners rights.
Chapter 7 Bankruptcy should also be discussed as part of a comprehensive foreclosure defense strategy. Deciding on the appropriate time for filing of a Chapter 7 Bankruptcy to aid in a foreclosure defense will depend on a myriad of factors. Some cases dictate that a Chapter 7 should be filed prior to responsive pleadings. Some cases dictate that Chapter 7 should be filed after settlement conference negotiations have broken down. Other cases dictate that Chapter 7 will be of no use to a home owner in foreclosure.
Chapter 13 Bankruptcy is an extremely useful tool for foreclosure defense planning. Chapter 13 filings are often times more effective earlier in the process for certain logistical reasons. If the default in mortgage payments were in the not to distant past, the use of Chapter 13 is more likely to be successful.
Federal loss mitigation applications should be considered when weighing bankruptcy options. For its brief existence, this program seems to be very successful and worth the effort to apply.
Please understand that loan modification applications should be submitted in completed form as quickly as possible to initiate loss mitigation negotiations. This is not separate from any of the options listed herein for foreclosure defense, but rather as a supplement. As always, case specific facts will determine which options each individual will proceed with after detailed discussions with an attorney.
Foreclosure Defense Attorney in Nassau County
If you or someone you are concerned about are facing foreclosure, call the Law Firm of Vaughn, Weber & Prakope, PLLC at 516-858-2620 today. Remember, successful litigation is no accident.
I already modified my mortgage, but because of new circumstances I am late again. Must I Short Sale my home now?
You may be able to get another loan modification based on your “new circumstances.” The HAMP guidelines were recently changed to address this situation. Homeowners who have defaulted on a trial or permanent HAMP loan modification are now eligible for a new HAMP loan modification. Additionally, the bank can always offer you an in-house loan modification if they want to. You may have several other options you can explore before doing a short sale. One of your options may be a chapter 13 bankruptcy. We have developed several strategies to assist distressed homeowners. A Short Sale is never the first option! It may be a good idea to consult with an attorney before making a final decision.
Foreclosure Defense Attorneys
Call the Law Firm of Vaughn, Weber & Prakope, PLLC at (516) 858-2620 to discuss your options.
Mortgage Forgiveness and Bankruptcy
Bank of America mortgage forgiveness and bankruptcy
Recently we have written about Bank of America forgiving second mortgages and the National Mortgage Servicer Settlement. Many homeowners facing foreclosure are anxious to find out if their second mortgage will be forgiven by Bank of America.
Well, it appears that one pattern may have emerged. Many homeowners who have already filed bankruptcy are receiving letters stating that their 2nd mortgage will be forgiven. Great news, right? Maybe. Some of these debtors are in active bankruptcy (chapter 7 & chapter 13). Some debtors have already received a bankruptcy discharge and are no longer personally liable for their mortgages. Other debtors have “stripped” their 2nd mortgages and BOA will likely receive much less than 100% of what is owed on the 2nd mortgage.
Not So Good
- It appears that BOA may receive credit, against the amount it owes under the National Servicer Settlement Agreement, by forgiving mortgages they can could no longer collect or only collect a portion of. This may lead to fewer distressed homeowners actually benefiting from the Settlement.
- There may be tax issues (the advice of a tax professional may be necessary).
- Distressed homeowners who are not in bankruptcy are receiving letters from BOA stating that their 2nd mortgages are being forgiven. This will make it easier for some homeowners to avoid foreclosure.
- Debtors in bankruptcy who are paying back 100% of the arrears on their 2nd mortgages and their full 2nd mortgage payment have received notification that their loan is being forgiven. This could alleviate the need for a chapter 13 bankruptcy altogether.
- Some homeowners may find themselves with instant home equity.
Nassau County Foreclosure Attorney
If you have any questions about this or other legal issues, call The Law Firm of Vaughn, Weber & Prakope, PLLC, at 516-858-2620, for a free consultation!
+This is not tax or legal advice.
Bankruptcy Bias for Blacks
A recent NY Times article discusses a recent study of racial differences in bankruptcy filings that shows a bankruptcy bias for blacks:
The study of racial differences in bankruptcy filings was written by Robert M. Lawless, a bankruptcy expert and law professor, and Dov Cohen, a psychology professor, both with the University of Illinois; and Jean Braucher, a law professor at the University of Arizona.
A survey conducted as part of their research found that bankruptcy lawyers were much more likely to steer black debtors into a Chapter 13 than white filers even when they had identical financial situations. The lawyers, the survey found, were also more likely to view blacks as having “good values” when they expressed a preference for Chapter 13.
This is news to me! As a NY Bankruptcy Attorney this has not been my experience, but I did find the article interesting and look forward to reviewing the study. I can assure you that bankruptcy can be a very difficult area of law (even for attorneys). There are many factors that need to be considered when deciding which bankruptcy chapter is best for you. No one should be steered into any chapter of bankruptcy! Make sure your bankruptcy attorney is a member of NACBA (National Association of Consumer Bankruptcy Attorneys). Also consult with several attorneys if possible (most offer a free consultation). We have no problem providing a free consultation to answer your general questions. We also have answers to frequently asked bankruptcy questions right here on this site.
New York Bankruptcy Attorneys
As always, the Law Firm of VAUGHN, WEBER & PRAKOPE, PLLC is here to assist you. We are conveniently located in the heart of Nassau County, Long Island, at 393 Jericho Tpke., #208, in Mineola, NY. Contact us at (516) 858-2620 to arrange a FREE consultation with a bankruptcy attorney.