Complicated Mortgage Foreclosure?
That’s what we do. We understand the legal issues facing lenders and can help you get to a sale.
We handle those too. We can help the title underwriter understand your claim, and how it is hurting your interests. We can also assist you with a suit against the underwriter for breach.
Suit on the Note or a Mortgage Foreclosure?
We can help you decide.
For Individuals and Businesses
Foreclosure – we can help you stave off foreclosure and stay in your home or negotiate a loan modification to get you better terms on your existing mortgage.
Refinancing - we can make sense of the documents and help you understand your options.
Mechanics’ Liens - we can help you foreclose or enforce your lien.
Loss Mitigation - we can help you figure out a viable transaction from a fraud upon you.
Foreclosure by judicial sale, more commonly known as judicial foreclosure, which is required in the State of New York, involves the sale of the mortgaged property under the supervision of a court, with the proceeds going first to satisfy the mortgage; then other lien holders; and, finally, the mortgagor/borrower if any proceeds are left. Under this system, the lender initiates foreclosure by filing a lawsuit against the borrower. As with all other legal actions, all parties must be notified of the foreclosure, but notification requirements must be strictly followed. A judicial decision is announced after the exchange of pleadings at a (usually short) hearing in a state court. In some rather rare instances, foreclosures are filed in federal courts.
For individuals facing foreclosure, all is not lost. Many of the lawsuits brought by financial institutions are defective. Additionally, there may be options other than litigation to resolve a deficiency or help you save your home.
Sondak Law Group will help identify circumstances where there may be technical deficiencies such as improper pleadings, or possibly the financial institution lacks the proper legal documents to prove the assertions made in the foreclosure action. In other situations, the borrower may have been fraudulently induced into the mortgage by misrepresentations made by:
A mortgage broker.
A representative of a lender
Loss mitigation is a term used to identify alternatives to foreclosure. The mortgage lending industry has recognized how many homeowners are behind on their mortgages or will soon be. It is possible that Sondak Law Group may be able to negotiate one of the following options to resolve your past due balance with your lender and avoid foreclosure:
Loan modification: This option alters the terms of the existing mortgage. Sometimes fundamental items including the interest rate, term of the loan, or the principal amount are renegotiated and a new contract is entered into.
Deed in lieu of foreclosure: Sometimes referred to as “cash for keys,” this program essentially allows the borrower to surrender his or her ownership of the property for the agreement on the part of the lender to not pursue any legal actions for deficiencies owed.
Short sale/short refinance: A short refinance is another example of altering the original terms of the mortgage contract whereby the parties agree that the lender will pay off the existing mortgage and replace it with a new loan along with a reduced balance. Similarly, a short sale is where the lender accepts the best negotiated price for the property for less than the amount owed on the note and generally forgives the deficiency.
It is important to remember that loss mitigation options are voluntary on the part of the lender. The borrower has no right to demand or be offered a work-out solution.
Lender and services representation
Lenders and servicers play critical roles in the completion of the majority of all real estate transactions. With ever increasing regulatory guidelines from local, state and federal authorities, lenders and servicers find themselves under more scrutiny than ever.
As in most areas of business, it is far better to anticipate and protect against potential issues in litigation than to await the filing of a lawsuit and react. To that end, lenders and servicers can review and revise their internal servicing processes affecting loans, train and monitor their staff in the implementation of proper loan protocols, implement corrective measures for addressing mistakes found in loan documents and understand the impact of pending legislation on the mortgage community.
Individuals who face foreclosure and default are increasingly fighting back. When individuals and class representatives file a suit, they name lenders and servicers as a matter of course.
Issues in Litigation
Claims involve matters such as:
Additionally, homeowners are seeking relief because of their inability to qualify for any of the various solutions offered under the Home Affordable Modification Program (HAMP), and lender and servicer practices are called into play as a result.
Compliance and the Myriad of Regulations
Among the guidelines regulating the mortgage lending industry that your attorney must be familiar with include:
Real Estate Settlement Procedures Act (RESPA)
Home Ownership and Equity Protection Act (HOEPA)
Truth in Lending Act (TILA)
Fair Debt Collection Practices Act (FDCPA)
Fair Credit Reporting Act (FCRA)
Lenders and servicers are on the forefront of the mortgage industry. Those who have remained in business through the crisis years must be proactive. Understand what the law requires to be compliant with all of the existing regulations and make sure that when you are forced to commence a foreclosure action, you are well armed and well represented.
Call Us Today
If you are facing foreclosure as a homeowner, or a lender in need of commencing foreclosure proceedings against a homeowner, call Sondak Law Group at (212) 324-3070.