Finding out that your home is in jeopardy of foreclosure can be very stressful for any family. Often, when someone finds out that their home may be going into foreclosure, they have no idea where to begin or what they can do. With the help of the Law Offices of David M. Katz, you can feel confident knowing that our firm is on your side. To learn more about foreclosures and the means of defense our firm can provide, contact the Law Offices of David M. Katz today.
What is a foreclosure?
When a homeowner is not able to make payments on their mortgage for several months, the mortgage lender can take back the home in a process known as foreclosure. When the lender takes back the house, the homeowner will no longer have the deed and the house may go up for auction.
When should I call a foreclosure attorney?
If you have received any communication from your mortgage lender about a potential foreclosure or you are aware that you cannot make payments on your home, you should contact an attorney as soon as possible. The Law Offices of David M. Katz can guide you through every step of the foreclosure defense process and put every effort forward to help you keep your home.
What is a mortgage modification?
One of the many methods of foreclosure defense is a mortgage modification, also referred to as a loan modification. This allows a homeowner to work with the lender to lower their interest rate, lower their monthly payments, or reduce the principal of the loan altogether depending on the final agreement between the two parties.
What are some misconceptions about foreclosure?
Foreclosure is a concept that many people misunderstand. The Law Offices of David M. Katz is here to answer any questions you may have regarding foreclosure in New York. Some of the common myths about foreclosure in New York include the following: Once you’re served with foreclosure papers, you have to move out of the home immediately. This is not true. You have the opportunity to explore foreclosure defense options. The bank wants to take your home. This is not true. The bank would much rather you make mortgage payments on your home, even if it means striking a deal to modify your loan. You have no options. This is not true. There are multiple options available to anyone who has been served with foreclosure papers, including requesting a loan modification, short selling the home, or catching up on your mortgage payments.
Does foreclosure impact my credit?
Unfortunately, going through a foreclosure can have a negative impact on your credit rating. This is not unique to foreclosure, however, because any time payments are not being made whether on your house, your car, your loans, or anything else you owe money on, your score will decrease. With the help of the Law Offices of David M. Katz, we can work with you to avoid going into foreclosure and make the payments more manageable to bring your credit score back up.
How long does foreclosure take?
The length of the foreclosure process is not the same for everyone. If there is no action taken by the homeowner to try and prevent the foreclosure, the lender can go through an expedited foreclosure process and bring the house to auction in as little as one year from the date you are delinquent in your payments. However, the process can be slowed significantly with the help of a skilled team of foreclosure defense attorneys.
Can I do anything if my home is scheduled for a foreclosure sale?
It is not too late to take action if your home is already scheduled for a foreclosure sale. Some of the options worth exploring at this time include paying the balance of your mortgage to save the property, filing for bankruptcy which will immediately stop the sale, or having your foreclosure defense attorney file papers with the court requesting that the sale is stopped.
What is a short sale?
A short sale is when a homeowner negotiates with the bank to sell your home than the amount you owe on your mortgage. At this time, the bank will relieve you of any further financial responsibility associated with the home. In some situations, the banks will provide you with a financial stipend to help you move out of the property quickly.
Can I give my house back if I can't afford my mortgage?
Sometimes, a homeowner wonders whether they can simply give their home back to the lender and be free from foreclosure. This process is known as a deed in lieu of foreclosure and is often confused with a short sale because they are rather similar. The lender will be responsible for selling your home and therefore, may take legal action against you if there is a deficiency after the sale. This, however, can be rectified before the sale in a written agreement.
What housing counseling is available to me?
The U.S. Department of Housing and Urban Development can provide recommendations for housing counseling agencies that can help at little to no cost. A foreclosure attorney can also provide more detailed advice after spending the time to look at your situation.
What should I do if I missed a mortgage payment?
When you receive a notification that you have missed a payment on your loan, be sure to contact the loss mitigation department at your lender as soon as possible. Additionally, if you have a payment coming up and are well aware that you won’t be able to make the payment, be sure to let your lender know. The sooner your lender is aware of the issue, the sooner they can start coming up with an alternative payment plan or other means of help. Finally, you may wish to contact a foreclosure defense attorney.
Who will pay foreclosure costs?
If you are able to pay off your loan and can keep the house, you will be responsible for paying any costs of the foreclosure. If your home does go through foreclosure and is sold to someone else, the new owner will cover the foreclosure costs. If the lender decides to purchase the property, they will be responsible.
What will happen to my tenants if my rental property goes into foreclosure?
Sometimes rental property goes into foreclosure and tenants worry that they will be left in the dust and forced to find another place to live. If the lease began before the property went into foreclosure, the tenants are permitted to stay until the end of their lease. The exception to this rule is that the new owner can remove them with a 90-day notice period.
Contact The Law Offices of David M. Katz
If your status as a homeowner is in jeopardy due to the inability to continue making payments, it is essential that you retain the services of a skilled foreclosure defense attorney as soon as possible. The Law Offices of David M. Katz has decades of experience helping homeowners in Rockland and Westchester Counties keep their home from foreclosure. Our firm is ready to help you and your family, too. Contact the Law Offices of David M. Katz today to discuss your situation.