This year, much to our delight, several of our foreclosure defense clients have received acceptable loan modification offers from their respective lenders. What’s most pleasing is that these clients had been rejected, on several occasions for some, or they were previously offered an unacceptable, unaffordable loan modification.
Last year, we found loan modifications hard to come by. In one case, we found serious problems with a major lender’s foreclosure paperwork. We requested a loan modification or dismissal of the foreclosure action with prejudice. However, rather than give our client a loan modification, the lender chose to discontinue their foreclosure action against him. Not a bad result at all, but our client really wanted a loan modification. As of today, the lender has not restarted the foreclosure action and a loan modification is being considered.
As always, The Law Firm of VAUGHN & WEBER, PLLC is here to assist you. We are conveniently located in the heart of Nassau County, Long Island, at 217 Willis Avenue in Mineola, NY 11501. Contact us at (516) 858-2620 to arrange a consultation.
Please visit our Foreclosure category to learn more about foreclosure issues.
Can you stop paying your second mortgage?
Sure.
Should you stop paying your second mortgage?
Maybe not.
The prevailing theory is that if your home is worth less than what you owe on your 1st mortgage it is highly unlikely that the holder of your 2nd mortgage will bring a foreclosure action against you.
Well, although it may be rare, we did have a homeowner come into our office this year whose 2nd mortgage was being foreclosed although his home’s value was less than the amount owed on the 1st mortgage. Additionally, lenders can, and some will, “sue on the note” (bring an action against you to recover the money you promised to repay them) rather than bring a mortgage foreclosure action.
On the brighter side, we have seen 2nd mortgage payments reduced by as much as 80% a month. Also, some lenders are willing to accept as little as 10% of what is owed on the 2nd mortgage as full payment. Additionally, if bankruptcy is an option, you might be able to “strip off” a totally unsecured second mortgage by filing a chapter 13 bankruptcy (see filing bankruptcy to save home from foreclosure).
We are often asked about paying and not paying second mortgages. Our answer: We can not advise you without knowing your specific situation and considering the particular options available to you. So, make sure you are fully informed before making a final decision.
As always, The Law Firm of VAUGHN & WEBER, PLLC is here to assist you. We are conveniently located in Mineola, NY. You can Contact us at (516) 858-2620 to speak with an attorney.
Can you handle your own bankruptcy, divorce, eviction and/or foreclosure defense?
Sure!
Should you?
Depends.
We have been receiving more and more calls and visits from individuals whose do-it-yourself legal representation went awry. These individuals have filed their own bankruptcy petition, started to defend their own foreclosure action, filed their own divorce petition or have tried to evict a tenant. We are usually asked if we can salvage their case by fixing the mistakes that were made. Sometimes we can, sometimes we can’t.
We are certainly not against people handling their own legal matters. We are all for people saving a buck in this economy. There are certainly situations where you can handle your own legal matter without any problems at all. However, you should be fully aware of the potential consequences you face should things not go so well.
Here are some of the potential consequences you face if you fail to properly follow procedure and/or the law when handling your own divorce, tenant eviction, bankruptcy filing, or foreclosure defense:
Eviction
- Your case is dismissed (you have to start all over. You likely lose time and money)
- Treble damages for an illegal eviction
- Jail for an illegal eviction
Bankruptcy
- Case dismissed for failing to follow law or procedure
- Loss of non-exempt property
- Denial of discharge
- Adversary proceeding brought against (usually alleging non-dischargeability of debt)
- Jail for fraud
Foreclosure Defense
- Your answer is treated as a notice of appearance
- Loss of meritorious defenses
- Loss of your home
Divorce
- Dismissal of petition
- Unnecessary delay
- Loss of marital assets and spousal support
The above is not meant to dissuade you from doing any of the above on your own. It is simply meant to give you an idea of some potential consequences you might face. It might be a good idea to consult with a knowledgeable attorney before making a final decision on self-representation. You may find that the potential savings are not that great and that you could actually end up losing lots of money and time if things go wrong.
No matter what you decide to do, we wish you well. All the best!
As always, The Law Firm of VAUGHN & WEBER, PLLC is here to assist you. We are conveniently located in the heart of Nassau County, Long Island, at 217 Willis Avenue in Mineola, NY. Contact us at (516) 858-2620 to speak with an attorney.
Are foreclosures being halted in NY?
Foreclosure defense is a large part of our law practice. We are currently defending foreclosures brought by GMAC, Chase, Bank of America, Wells Fargo etc. For the most part, we have not seen much evidence of these lenders suspending current foreclosure actions. They are still opposing our motions, replying to our answers, and having counsel attend the Mandatory Foreclosure Settlement Conferences on their behalf.
However, we have had several recent loan modification offers, requests for adjournments, and at least one major lender is attempting to discontinue their foreclosure action against one our clients. We were able to achieve the foregoing results by raising and vigorously litigating the “faulty/fraudulent paperwork” that is a part of many foreclosure actions.
So, we know what the headlines say, but we have YET to receive any calls from any lenders or their attorneys saying “Hey, we are discontinuing all of our foreclosures in NY.” We look forward to that day, but until then, we will keep raising the issues and fighting for our clients.
As always, The Foreclosure Defense Law Firm of VAUGHN & WEBER, PLLC is here to assist you. We are conveniently located in the heart of Nassau County, Long Island, at 217 Willis Avenue in Mineola, NY 11501. Contact us at (516) 858-2620 to arrange a consultation with a foreclosure defense lawyer.
Please visit our Foreclosure category to learn more about foreclosure issues.
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