Question: One of my properties is under water and I would like to walk away from it. The bank knows my financial situation and I am not in hardship. What is a proper legal procedure I can follow to walk away from my house?
Response: In a somewhat rare situation like yours, it is best to negotiate a deed-in-lieu of foreclosure with the bank. If you simply walk away from your house now, the bank will follow its typical foreclosure routine and obtain a deficiency judgment against you. What makes your situation rare is that you actually have assets to satisfy deficiency judgment, as opposed to most other cases where the bank would not be able to enforce such deficiency. Therefore, in your situation, it is best to do the deed-in-lieu to the bank as long as it has been agreed that you walk away with a clean slate, i.e., no deficiency. Please note that the bank will usually consider a deed-in-lieu as the last resort. They would want you to try to do a short sale first. With short sales, there may be tax consequences and again, in your case, it would have to be properly negotiated with the bank to avoid that. Also, please note that in order to do a deed-in-lieu, the property must not be occupied by tenants.
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer
Saturday, December 31, 2011
Friday, December 30, 2011
Speeding up the foreclosure process
Question: My home is in foreclosure and I don't know yet when the mortgage company will take over my home. My homeowners insurance will term next month and the mortgage company should start covering the house through the forced coverage. Given that my family is currently in financial distress, I would like get this home off our backs as soon as possible, since otherwise we could end up with a large financial obligation that we cannot afford. I am looking for suggestions on how to speed up this process.
Response: If your mortgage is under water (i.e. mortgage is greater than the appraised value of your home) and you are not renting any of the space to tenants, then consider contacting the bank to do a deed-in-lieu of foreclosure. Basically, you transfer the deed of the property to the bank and you walk away debt-free. It is then the bank's responsibility to sell the property. Generally, the bank may require you to try to do a short-sale first (that is if the mortgage is under water). If you still have equity in your home, then you can always just try selling your home and paying off the debt to the bank. Otherwise, foreclosure process is very lengthy and will take a couple of years to be completed, especially in NY, and then the bank may obtain a deficiency judgment against you for the remaining balance (the difference of what is owed to the bank and what is recovered at foreclosure sale). Call an experienced attorney today to discuss your options.
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer
Response: If your mortgage is under water (i.e. mortgage is greater than the appraised value of your home) and you are not renting any of the space to tenants, then consider contacting the bank to do a deed-in-lieu of foreclosure. Basically, you transfer the deed of the property to the bank and you walk away debt-free. It is then the bank's responsibility to sell the property. Generally, the bank may require you to try to do a short-sale first (that is if the mortgage is under water). If you still have equity in your home, then you can always just try selling your home and paying off the debt to the bank. Otherwise, foreclosure process is very lengthy and will take a couple of years to be completed, especially in NY, and then the bank may obtain a deficiency judgment against you for the remaining balance (the difference of what is owed to the bank and what is recovered at foreclosure sale). Call an experienced attorney today to discuss your options.
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer
Thursday, December 29, 2011
Unaffordable mortgage payments coming off the interest only loan
Question: The term on my interest only loan will end soon and my home is under water. At the end, I will end up owing $100,000 more than what my home appraises to with 20 years left to pay off. Given the above, I do not qualify for refinancing nor any government programs. Also, my new mortgage payments will be more than double of what I have been paying so far, and I will not be able to afford them when they start to kick in. What can I do?
Response: The first step for you is to find out if your lender participates in the government's Making Home Affordable program (most major banks do). If you have sufficient income and have not yet defaulted on your mortgage, you may be able to refinance through Home Affordable Refinance Program (HARP). Another option is loan modification but beware that even though it is not required by law, most banks require that you default on your payments before you are considered for loan modification. Start off with calling your bank and inquiring as to what programs does the bank participate in. If they tell you to default on your mortgage payment, then a whole new can of worms opens up (i.e. ruined credit; potential foreclosure if the modification is not resolved) and I would recommend looking into other options first. The bottom line is--the bank does not want your home, and even more so if your mortgage is no longer secured by equity in your home.
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer
Response: The first step for you is to find out if your lender participates in the government's Making Home Affordable program (most major banks do). If you have sufficient income and have not yet defaulted on your mortgage, you may be able to refinance through Home Affordable Refinance Program (HARP). Another option is loan modification but beware that even though it is not required by law, most banks require that you default on your payments before you are considered for loan modification. Start off with calling your bank and inquiring as to what programs does the bank participate in. If they tell you to default on your mortgage payment, then a whole new can of worms opens up (i.e. ruined credit; potential foreclosure if the modification is not resolved) and I would recommend looking into other options first. The bottom line is--the bank does not want your home, and even more so if your mortgage is no longer secured by equity in your home.
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer
Wednesday, December 28, 2011
Unaffordable loan modification terms
Question: I have been applying for a loan modification for over a year. Finally, I got approved but my modified mortgage payment is only $50 less than my original payment. I still cannot afford this new monthly payment. If I do not sign this agreement will the bank continue to work with me in trying to modify my mortgage under better terms or will the bank automatically foreclose on my home?
Response: This is a tricky area. There are many factors that come into play in a situation like this, such as: monthly household income, the value of the home in comparison to your debt, how many payments were missed, whether your escrow has gone up, whether the loan is FHA (FHA loans generally end up in slightly higher monthly payments because different rules apply), etc . For instance, if you were qualified under HAMP and 31% of your gross monthly income is only $50 less than the original monthly mortgage payment, then the new amount is accurate, as it based entirely on your gross monthly income. Had 31% of your gross monthly payment exceeded the original monthly payment by any amount, you would have been denied altogether, citing that the original mortgage payment was affordable. This is precisely why it is hard to answer a question like this without knowing all the details of the situation. However, generally, once a loan modification agreement is issued, the bank will not conduct another review unless there is a material change in circumstances (for example, if your household income has increased since last submission of documents). Most banks conduct a review for HAMP and traditional modification. It is sometimes possible that a new review will result more favorably. It is always a good idea to consult with a professional who could accurately depict the picture of your available options before you choose an option that may later be regrettable. In any case, failure to accept proposed loan modification will not result in immediate foreclosure in NY. It is still a long and complex legal process that must run its course.
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer
Response: This is a tricky area. There are many factors that come into play in a situation like this, such as: monthly household income, the value of the home in comparison to your debt, how many payments were missed, whether your escrow has gone up, whether the loan is FHA (FHA loans generally end up in slightly higher monthly payments because different rules apply), etc . For instance, if you were qualified under HAMP and 31% of your gross monthly income is only $50 less than the original monthly mortgage payment, then the new amount is accurate, as it based entirely on your gross monthly income. Had 31% of your gross monthly payment exceeded the original monthly payment by any amount, you would have been denied altogether, citing that the original mortgage payment was affordable. This is precisely why it is hard to answer a question like this without knowing all the details of the situation. However, generally, once a loan modification agreement is issued, the bank will not conduct another review unless there is a material change in circumstances (for example, if your household income has increased since last submission of documents). Most banks conduct a review for HAMP and traditional modification. It is sometimes possible that a new review will result more favorably. It is always a good idea to consult with a professional who could accurately depict the picture of your available options before you choose an option that may later be regrettable. In any case, failure to accept proposed loan modification will not result in immediate foreclosure in NY. It is still a long and complex legal process that must run its course.
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer
Tuesday, December 27, 2011
The option of deed-in-lieu for those rejected for a loan modification
Question: I have been rejected for a loan modification. Should I do a deed-in-lieu? If I take that option, can I continue to live in my home?
Response: The idea behind doing the deed-in-lieu of foreclosure is that the borrower transfers the ownership of the home to the bank, thus, wiping out the entire mortgage debt. Some banks even provide a financial incentive for the borrower to do so. The reasoning behind it is that the non-paying owner leaves, allowing the bank to try to re-sell the property, and this way, earn some, if not, all of its money back. As such, you cannot continue to live in the premises unless specifically agreed so with the lender.
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer
Response: The idea behind doing the deed-in-lieu of foreclosure is that the borrower transfers the ownership of the home to the bank, thus, wiping out the entire mortgage debt. Some banks even provide a financial incentive for the borrower to do so. The reasoning behind it is that the non-paying owner leaves, allowing the bank to try to re-sell the property, and this way, earn some, if not, all of its money back. As such, you cannot continue to live in the premises unless specifically agreed so with the lender.
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer
Monday, December 26, 2011
Foreclosure auction and eviction
Question: If my home does not sell at a foreclosure auction, will I be able to stay in my home?
Response: Generally, if there are no bidders at a foreclosure auction, the bank that owns the loan usually bids a nominal amount to take possession of the property. This way, the bank can at least have some security that if it resells the property at a later time, it will recover some, if not all, of the money that was originally borrowed but not paid back. It is further important to note that unless no one is living at the property at the time of sale, the bank will have to institute an eviction proceeding to get the old owner or tenants out of the house. Essentially, the eviction process takes time. Eventually, unless you bring an Order to Show Cause to the Court to prove otherwise, the bank will prevail at its eviction proceeding and at that point, you will no longer be able to stay at your old home. Since it is in the bank's best interest that you leave as soon as possible, oftentimes, the banks will offer different financial incentives to help speed up that process and avoid an eviction proceeding (some banks will pay for your move and offer extra money to start over, but that is not a rule of thumb).
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer
Response: Generally, if there are no bidders at a foreclosure auction, the bank that owns the loan usually bids a nominal amount to take possession of the property. This way, the bank can at least have some security that if it resells the property at a later time, it will recover some, if not all, of the money that was originally borrowed but not paid back. It is further important to note that unless no one is living at the property at the time of sale, the bank will have to institute an eviction proceeding to get the old owner or tenants out of the house. Essentially, the eviction process takes time. Eventually, unless you bring an Order to Show Cause to the Court to prove otherwise, the bank will prevail at its eviction proceeding and at that point, you will no longer be able to stay at your old home. Since it is in the bank's best interest that you leave as soon as possible, oftentimes, the banks will offer different financial incentives to help speed up that process and avoid an eviction proceeding (some banks will pay for your move and offer extra money to start over, but that is not a rule of thumb).
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer
Sunday, December 25, 2011
Does 'trial' modification lead to 'permanent' loan modification?
Question: We have been working with the bank for the past two years to get a loan modification and now we are losing our house to foreclosure. Originally, we were put on a payment plan and have been paying less than what the actual mortgage payments were for the past two years. The bank has just contacted us with a decision that we were denied a loan modification stating that our debt to income ratio is not between 10-55%. What can we do?
Response: You most likely were given a "trial" loan modification in late 2009 or early 2010. Sadly, even as early as 2010, banks offered "trial" modifications over the phone without verifying financials, which is the essential component for banks now to offer a "trial" modification, and yet alone, permanent modification. I just successfully resolved almost an identical case, where the borrower was on a "trial" modification, paying a reduced sum for a duration of 18 months. After 18 months, he was denied a permanent modification. Generally, if foreclosure action has already been commenced, the court will regard this kind of a denial as bad faith and may even sanction the bank, but in this case, the bank did not commence a foreclosure proceeding and continued to accept payments from him and applied them as partial payments towards his original monthly mortgage payment (once foreclosure is commenced, the bank can no longer accept any payments from borrower other than to fully pay off the loan). Accordingly, upon denial, we resubmitted all the financial paper work to the bank and the financials showed affordability to the bank and my client was offered another modification plan (traditional, as opposed to HAMP). He was in a "trial" for 3 months, paying even less than he paid for those 18 months and after 2nd payment, he received a permanent modification agreement, offering very similar terms to HAMP (starting with 2.175% and eventually rising to 4.375% fixed). The bottom line is you still have options and can have a favorable outcome. You just have to reach out to an experienced attorney, who could help you and not mislead you.
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer
Response: You most likely were given a "trial" loan modification in late 2009 or early 2010. Sadly, even as early as 2010, banks offered "trial" modifications over the phone without verifying financials, which is the essential component for banks now to offer a "trial" modification, and yet alone, permanent modification. I just successfully resolved almost an identical case, where the borrower was on a "trial" modification, paying a reduced sum for a duration of 18 months. After 18 months, he was denied a permanent modification. Generally, if foreclosure action has already been commenced, the court will regard this kind of a denial as bad faith and may even sanction the bank, but in this case, the bank did not commence a foreclosure proceeding and continued to accept payments from him and applied them as partial payments towards his original monthly mortgage payment (once foreclosure is commenced, the bank can no longer accept any payments from borrower other than to fully pay off the loan). Accordingly, upon denial, we resubmitted all the financial paper work to the bank and the financials showed affordability to the bank and my client was offered another modification plan (traditional, as opposed to HAMP). He was in a "trial" for 3 months, paying even less than he paid for those 18 months and after 2nd payment, he received a permanent modification agreement, offering very similar terms to HAMP (starting with 2.175% and eventually rising to 4.375% fixed). The bottom line is you still have options and can have a favorable outcome. You just have to reach out to an experienced attorney, who could help you and not mislead you.
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer
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