Loss Mitigation and Loan Modification in Bankruptcy Court

On September 19, 2016, in Bankruptcy, by Robbie L. Vaughn, Esq.
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(Bankruptcy Court -EDNY – Central Islip, NY)

Bankruptcy Court’s Loss Mitigation Program

In 2009, The United States Bankruptcy Court – Eastern District of New York adopted a Loss Mitigation Program which applies in all individual Chapter 7, 11, and 13 cases.

The Bankruptcy Court’s General Order #543 provides the following:

The term “loss mitigation” is intended to describe the full range of solutions that may avert the loss of a debtor’s property to foreclosure, increased costs to the lender, or both. Loss mitigation commonly consists of the following general types of agreements, or a combination of them: loan modification, loan refinance, forbearance, short sale, or surrender of the property in full satisfaction. The terms of a loss mitigation solution will vary in each case according to the particular needs, interests, and goals of the parties.

Loss Mitigation may be requested by a debtor or creditor.  Also, the Bankruptcy Court may enter a Loss Mitigation order at any time after notice to interested parties.  However, in our experience, the Debtor’s attorney typically files a motion requesting loss mitigation in an effort to obtain a loan modification for the debtor.

We currently have several clients who are participating in the loss mitigation program. The program has some similarities to foreclosure settlement conferences held in state court, but appears to move along at a much faster pace.

You can click here to watch a video entitled “Loss Mitigation and Mortgage Modification in Bankruptcy Courts.”

Additionally, you can always call the Law Firm of Vaughn, Weber & Prakope, PLLC at 516-858-2620, to speak with an experienced bankruptcy attorney.

 

New Foreclosure Notice Requirement

On November 14, 2012, in Foreclosure, by Robbie L. Vaughn, Esq.

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.

Mortgage Relief Scammers

The Federal Government appears to be increasing its efforts to protect homeowners from mortgage rescue scammers.  As we reported here, mortgage rescue scammers may attempt to take advantage of homeowners by fraudulent posing as government programs, accepting payments without providing services, or transferring title to the mortgaged premises, among other things.  The scale of this lawsuit, along with the fact that the Federal Government seems to be pursuing these types of cases more frequently, should discourage individuals attempting to pursue such practices.  But the fact that the Government named so many defendants also means that these practices are still probably quite common.  Homeowners should diligently research foreclosure rescue programs before entering any agreements, or making payments.  Read more about the lawsuit here.

Foreclosure Attorneys in Mineola

The Attorneys at the Law Firm of Vaughn, Weber & Prakope, PLLC are experienced in Loan Modification Negotiation and Foreclosure Defense.  If you have questions about these or other legal issues, call our office at 516-858-2620 today to schedule a free consultation.

Federal Trade Commission vs. Mortgage Relief Companies

Federal Trade Commission sues mortgage relief companies

The Federal Trade Commission recently filed three separate lawsuits against mortgage relief companies – Prime Legal Plans/Reaching U Network, American Mortgage Consulting Group, and Expense Management America.  According to the FTC’s allegations, these companies were fraudulently selling mortgage relief services.  The companies charged homeowners for various services that were supposed to reduce mortgage payments or otherwise relieve them of mortgage obligations.  In reality, the companies accepted payment without providing services.  Additionally, the companies violated other laws by, among other things, calling homeowners that were on the do-not-call registry, fraudulently claiming to be associated with government agencies, fraudulently claiming to be attorneys, collecting upfront fees, and claiming to be charities.

It is bad enough that these companies were charging distressed homeowners without providing services.  What’s worse is that, by convincing homeowners that their services would be effective, these companies prevented homeowners from pursuing legitimate services and defenses.

According to a recent press release, the FTC has filed more than 40 cases against fraudulent mortgage relief services since 2008.  This suggests that such practices might be quite common.  Homeowners should always be on guard against potential scams, and should gather as much information as possible about mortgage relief or other debt defense companies before making payments.

The Attorneys at Vaughn, Weber & Prakope, PLLC have experience in Loan Modification Negotiation and Foreclosure Defense.  If you have any questions about these areas and would like to schedule a free consultation, call our office at 516-858-2620 today to schedule a free consultation.

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. This website is Attorney Advertising. It does not form an attorney-client relationship. We are a debt relief agency and a law firm that helps people file for bankruptcy relief under the U.S. Bankruptcy Code – Title 11. Prior results do not guarantee a similar outcome. Proudly assisting residents of Long Island, Nassau county, Suffolk county, New York City, Queens, Brooklyn, Bronx, Staten Island, Manhattan