Deed in Lieu of Foreclosure
How can I do a Deed-in-lieu of Foreclosure?
Deed-in-lieu of Foreclosure– Occurs when the lender accepts ownership of the property in place of the money owed on the mortgage.
Basically, you simply sign over the property to the bank to avoid foreclosure.
Sounds easy, right? Not so fast!
Most lenders will require that the homeowner first attempt a short sale before they will even consider a Deed-in-lieu of foreclosure. Additionally, having multiple lenders can complicate things even further. We have yet to see a Deed-in-lieu accepted on a property with multiple lenders. Therefore, we don’t see Deed-in-lieu of Foreclosure as a viable first option for distressed homeowners.
However, things may be changing, we recently received a call from a client who has been asked, by their lender, if they are interested in completing a Deed-in-lieu of Foreclosure. We will have to see if this is an isolated occurrence or the new trend.
Foreclosure Defense Attorneys
Call the Law Firm of Vaughn, Weber & Prakope, PLLC at 516-858-2620 to speak with a foreclosure attorney.
Foreclosure Notice Requirement
The National Mortgage Settlement‘s Pre-Foreclosure Notice Requirement for servicers
Servicers must now provide the homeowner with a pre-foreclosure notice at least fourteen (14) days before referring the case to a foreclosure attorney.
*The notice must:
- Set forth facts supporting the Servicer’s or holder’s right to foreclose.
- Include an itemized summary setting forth account information (i.e. reinstatement amount/arrears, date of the last full payment, description of any late fees).
- Include a statement that upon written request the borrower may receive certain information (i.e. payment history, copy of the note, copies of any assignment of the mortgage, the name of the investor that holds the loan).
- Include a statement outlining the loss mitigation efforts the service has undertaken before foreclosure.
- State why the borrower was denied a loan modification or other loss mitigation.
- Include contact information to obtain more information from servicer.
- Include contact information for counseling agencies.
We have seen several of this notices and believe that they provide useful information to homeowners and their attorneys.
Long Island Foreclosure Defense Attorneys
Call the Law Firm of Vaughn, Weber & Prakope, PLLC at 516-858-2620 today.
*The above is a partial list.
Bank of America Reduces Mortgages by Forgiving a Portion of the Principal.
For those of you who have not heard the breaking news, Bank of America has begun to forgive a portion of the principal on certain people’s mortgages. The NYT is reporting that “Bank of America has started sending letters to thousands of homeowners in the United States, offering to forgive a portion of the principal balance on their mortgages by an average of $150,000 each.” In a press release announcing the new practice, Bank of America claims to have developed this program under the terms of a settlement involving five major banks, the Federal Government, and 49 state attorneys general. This may mean that other banks will begin taking similar actions in the near future, but that remains to be seen.
In some instances, the reduced principal could end up lowering mortgage payments by approximately 30%. By forgiving a portion of the principle and lowering monthly payments, Bank of America is able to turn mortgages that would otherwise default into long-term performing mortgages. At the same time, this will allow many individuals to remain in their homes. Bank of America will be contacting about 200,000 potential candidates.
If you have any questions about mortgages, feel free to contact The Law Firm of Vaughn and Weber at (516) 858-2620 to speak with a foreclosure attorney. We would be happy to speak with you about this or other mortgage issues.
Bank of America’s Press release summarizing its new policy can be seen by clicking here.
The May 7, 2012 New York Times article by Natasha Singer can be accessed by clicking here.
Foreclosures are Increasing
Foreclosures are increasing.
According to several recent news articles and reports, it appears that foreclosure actions are once again on the rise. Fortunately, we have noticed much of an increase in foreclosure actions being brought. At any rate, this is still troubling news.
Loan Modifications are up.
At least in our office, we have seen an increase in Loan Modifications. Many of our clients have recently received loan modification offers. Many of the offers are for a HAMP trial modification. However, we have received some permanent in-house modification offers.
Each case varies:
- Some cases involved lengthy litigation (years).
- Some cases were resolved in a matter of months.
- Several of our clients had already filed for chapter 7 bankruptcy
- Most, if not all, of our clients were previously turned down for a loan modification.
Note: Prior results do not guarantee a similar outcome.
The Law Firm of Vaughn, Weber & Prakope, PLLC routinely represents homeowners facing foreclosure. We examine each homeowner’s specific situation to determine their best course of action. We proudly assist residents of Long Island (Nassau county, Suffolk county) and New York City (Queens, Brooklyn, Bronx, Staten Island, and Manhattan) with their foreclosure matters.
Call (516) 858-2620 to arrange a FREE consultation with a foreclosure attorney!