Responding to summons and complaint, and subsequent steps in foreclosure cases

Question: My bank is suing me because I have not paid my mortgage for about a year. These are the reasons I am not paying my mortgage: 1) I applied for loan modification, but the bank never approved it, 2) for personal reasons, I fell into financial hardship. The summons and complaint letter I got from the court states that I have 20 days to respond. What should I state in my response? In other words how do I proceed? My main concern is that following this foreclosure process I might end up with a larger debt than I had originally.

Response: When you personally get served with the summons and complaint, you get 20 days to answer unless you call the Plaintiff's firm and ask for an extension to file an answer. Generally, such requests get granted if you don't wait too long. In your answer, you must answer to every allegation in the complaint, either by admitting, denying, or stating that you don't know the answer. If any paragraph of the complaint remains unanswered, it will be considered true and admitted. Once you answer the complaint, foreclosure action cannot take place because of your default. You will be put on notice of every legal proceeding in your case. You will have an opportunity to oppose Plaintiff's motions, as well. In New York you will be placed in the mandatory settlement conference part, where you and the lender will have to negotiate in good faith to try to settle the case, i.e., modifying the loan (if you qualify). Essentially, you have to figure out what's most important to you--saving the home or getting rid of the debt as quickly as possible. If your priority is to save your home, then you will have an opportunity to do so in court settlement conference part. If your goal is to get rid of the debt (and the house) as soon as possible, then you can either do a short sale or a deed-in-lieu of foreclosure. Regardless of what you decide to do, you should still put in an answer to the complaint. Consult with a professional attorney, who could advise you of your legal rights.

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.
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Extension on foreclosure sale in New York

Question: After the court has issued a foreclosure sale date, is it possible to get an extension in New York? The bank dragged out my short sale until the last day and then declined the offer. I was also told by the court that I would be able to get an extension but when I attempted to get one a few days later, the court told me there was no sale date on the calendar and once it was entered then I could file for an extension to complete a deed-in-lieu. Now my goal is to try to get a deed-in-lieu and keep this foreclosure off my credit report.

Response: If you initiate the deed-in-lieu process with the bank, they are likely to hold off on the foreclosure sale for now. In New York, there are many procedural steps that the bank must take in order to actually have the sale go through. If you have a foreclosure sale scheduled and need to stop it on an emergency basis, then filing for bankruptcy is the way to stop the sale. However, if you are afraid of having foreclosure appear on your credit report, then you are not likely to agree to bankruptcy either, but it is a good idea to know your options regardless. Consult with an experienced attorney to determine the best course of action for you at this time.

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.

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Qualifying for Deed In Lieu of Foreclosure

Question: We walked away from our house as we could no longer afford it. The interest rate on our mortgage was unreasonably high by today's standards and still our bank was not willing to renegotiate the terms. Therefore, we have been out of the house for several months now. At this point we would just like the bank to proceed with foreclosure and take possession of the house, but it's not happening. We heard about a process called "Deed in lieu of Foreclosure". How do we go about this or see if we qualify?

Response: Foreclosure is a complex, legal process. Just because you stopped making payments and physically walked away from the house does not mean that the bank can just take the house away. The bank must initiate a lawsuit and follow all the proper legal procedural steps before it can get to the actual sale of your home. By executing a deed-in-lieu of foreclosure, you can expedite the process. Essentially, by doing a deed-in-lieu, you are transferring the title of your house to the bank, thus avoiding foreclosure and all the fees and costs that the bank accrues as a result of having to sue you. However, there may be tax consequences, depending on the value of your home at the time the transfer takes place. Generally, a deed-in-lieu is a better alternative than foreclosure if you have no intentions to save your home. As a side note, please take into consideration that if foreclosure action would take place in New York, there are mandatory settlement conferences in New York, whereby banks are bound to negotiate with the borrower in good faith, and it is oftentimes, easier to negotiate with the bank and have the interest lowered than going through the court process. Furthermore, it is important to note that a deed-in-lieu still places the headache of re-selling the property on the bank. Therefore, the lender might not agree to a deed-in-lieu unless the homeowner has tried all other loss mitigation options first, such as short sale.

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.

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Lack of legal standing defense in the assignment of mortgage cases

Question: We have been issued a summons and complaint in a foreclosure process from our mortgage servicer. We have been in the process of loan modification on our mortgage for approximately two years (and paying as requested). The mortgage servicer would periodically update us, letting us know that all is proceeding well and our loan would be modified within weeks, and then restart the whole process from scratch all over again. They have dragged their feet for reasons unknown to us, while telling us that we are doing everything expected of us. When we got the summons and complaint notice, we realized that it is not from the mortgage servicer but from the bank. We have always only dealt directly with mortgage servicer and not the bank. We have factual evidence that proves that we have been defrauded and that the bank has no legal standing in this matter. We have assembled documents in response and are alleging that the bank doesn't legally own the debt or mortgage. Is there a specific process that we need to follow to get the foreclosure dismissed?

Response: First things first, you must answer the complaint. In your answer, you should definitely use the defense of lack of standing (along with other defenses if they exist). But you would also have to bring a Motion to Dismiss based on lack of standing and then it would be in the court's discretion to determine whether your case is dismissible or not. It is a common practice for banks to do an assignment of mortgage, which would explain why another lender is suing you. It is a rather sensitive topic for banks today (as a lot of mortgage assignments were defectively executed) and your suing bank would thus have to prove their ownership of the note in order to proceed in their action. Also, whoever is servicing the loan is generally not the owner of the note. It is the servicer's duty to collect the owed debt for the owner of the note. Please do your research accordingly. You may want to contact a knowledgeable attorney who could help you with foreclosure defense.

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.

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Notice of Motion for Summary Judgment (MSJ) and its role within the foreclosure process

Question: We have just received a notice that states that motion for summary judgment of foreclosure has been scheduled for hearing on a certain date. What does this mean and what is the next step in the foreclosure process? If the foreclosure entry is accepted by the court, what would be the next action taken by the lender? If the lender's solicitor goes to court on that date and the court sets the foreclosure sale, does the solicitor contact us and how long do we have before the foreclosure sale takes effect?

Response: If you have received Notice of Motion for Summary Judgment (MSJ), that means that you put an answer to the complaint and now the attorneys for the bank are trying to tell the judge that there are no issues of fact to be decided by the jury, only issues of law to be decided by the judge. Along with the MSJ, banks usually move the court for an Order of Reference, seeking the court to appoint a Referee, who would indeed conduct the sale. If you are fighting to save your home, then it is best to put in opposition papers to MSJ, where you should state why MSJ should be denied. You would need an experienced attorney, who could help you oppose and then possibly argue before the judge. Also, please note, that even if MSJ is granted by the court, the bank must then move the court by filing a Judgment of Foreclosure and Sale (JFS). Foreclosure auction cannot take place until JFS is granted and a sale is scheduled and you are put on notice of the sale (in addition to having notice mailed to you if you were served more than a year ago, notice gets published a number of times in a local newspaper). If you do not have sufficient time to consult an attorney before the next court date, you can always come to court and ask for an adjournment (typically first-time adjournments are easily granted).

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 © 2013 Law Office of Svetlana Kaplun, P.C.


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Bankruptcy filing stalling the foreclosure process on my properties

Question: We filed for bankruptcy in first quarter of 2011 and it was discharged four months later. Two of our residential properties financed by different banks were named in the bankruptcy: 1) this property was financed through a mortgage from the first bank, 2) this property was financed through a mortgage and an equity line of credit from the second bank. Both lenders have not foreclosed on the properties yet. We tried to do a loan modification with the second bank, but ran into a roadblock. Since then we have decided to move on with our lives and let the banks foreclose on the properties. However, the banks keep on stalling the foreclosure process. Is there a "statute of limitations" that prevents the banks from foreclosing on our properties, because both properties were listed in the bankruptcy? At this point we would like the foreclosure process to move forward.  However since both properties were named in the bankruptcy, we are worried that banks will come back to us at some point and let us know that both properties are still our responsibility.

Response: Foreclosure can be a very lengthy process that could take a number of years, not just months, especially if you live in states that have experienced a lot of foreclosures in the last few years. In those states, courts are doing everything possible to slow down the foreclosure process to help save as many homes as possible. The date since you filed for bankruptcy is irrelevant here. The bank will foreclose on your home as soon as they can (legally and procedurally).  It will definitely be a quicker process if you do not oppose it. At the same time, you can perhaps try to do a deed-in-lieu of foreclosure, whereby you give up the deed to the house to the bank and that too could significantly expedite the process.

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.

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In the case that I default on mortgage payments on my investment property, can the bank go after my primary residence, which is paid off?

Question: I own two homes: one is completely paid off and the other has a mortgage on it. Due to certain events in my personal life I am worried that I might default on the mortgage of the second home. In the case that I do default on the mortgage, would the bank be permitted to go after the home that is paid off? I have not pursued any options yet. However, I also have very unstable tenants in the house and will have trouble making the payments if they move.

Response: The only way the bank can go after your home that is paid off is if after a foreclosure sale, there is still money owed to the bank (i.e. difference between the mortgage and the sale price). That should only be a concern if your home is "under water." Then again, the bank can't just take your home but can obtain a deficiency judgment resulting from the difference in price and put a lien on your other property (you are unlikely to be forced to sell your primary residence). However, when you do voluntarily sell your home, that is when you would have to satisfy the lien. Nevertheless, if your home has equity, then the bank will be satisfied with the proceeds from the sale and that would not be a concern. Although most banks have a policy in place to try to modify the loan on the primary residence, some banks try to find a workout option even on investment properties. It is possible that if you could get a loan modification or refinancing, your payments could be much lower and more affordable.

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.

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Mortgage payments on my "under water" home are no longer affordable due to financial hardship. What can I do?

Question: I have been paying my mortgage on-time for many years. Now I am late on my payments by one month as I have ended up in financial hardship due to certain events in my personal life. Very soon I will not be able to afford my home. What can I do? I owe approximately $225K and my home is now only worth $200K. In the past, I tried to modify my mortgage and after a year of loan modification process I was denied.

Response: Whether you qualify for loan modification depends on various factors, such as gross monthly household income, debt to income ratio, net present value of the home. On the mortgage of $225K, you could likely qualify for HAMP loan modification (if your servicer participates in HAMP) if your gross monthly income is approximately $3K. However, if you are still unable to afford your monthly payments or you have insufficient income, then you should likely consider a short sale.  Consider contacting a knowledgeable attorney, who could advise you on options that would work best for 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.

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Does signing over quitclaim deed release me from financial obligation on foreclosed property?

Question: The bank is about to foreclose on my home. Someone had approached me and said that he will settle the debt with the bank if I sign over a quitclaim deed. He also stated that he will immediately take over possession of the house, deal with the bank, the tenant, etc. and I will be able to walk away from the house debt-free. I am very skeptical that this can happen so easily. I am worried that quitclaim deed does not release me from the financial obligation on the property in case the property ends up in foreclosure. How can this person make a deal with the bank? How can I get the bank to release me from my mortgage?

Response: You are absolutely right. Whoever is telling you to do a quitclaim deed is trying to scheme you. While this individual will become the new owner of your property, you will continue being financially obligated to the bank. It will be your credit report that will suffer and essentially you will be the one sued (although the new owner will be sued too for the sake of having his interest in the property cut off). The new owner will not be able to modify the loan or negotiate anything with the bank because the new owner is not the borrower and the borrower is the only person that the bank will deal with. If you want to get rid of this mortgage, sell your property to this individual or any other interested buyer and satisfy the mortgage. If the buyer will need to take out a mortgage, then let it be in their name, not yours. If your property is worth less than the mortgage, then do a short sale. This way, you will also be able to get rid of financial obligation to the bank, but do not, under any circumstances, transfer the ownership of the property to someone else while remaining financially responsible for it! If you want to learn more about your rights in this case and the proper transfer process, consider contacting a knowledgeable attorney.

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.

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Has my bank acted negligently by not modifying my loan for many years and now foreclosing on my home?

Question: I have been trying for many years to get a loan modification from my bank. They are now putting me into foreclosure. I exhausted all my savings, retirement funds, credit cards and have had to file bankruptcy all because of them dragging their feet. Can I sue them for their negligence?

Response: While your foreclosure case is pending in court, it is much easier for you to show the bank's negligence by explaining the details to the judge or referee. In NY, settlement conferences are mandatory and the judges/referees presiding over these cases have a lot of leeway to obligate the bank to conduct a good faith review of your financials for loan modification.  Unfortunately, if you don't qualify for a loan modification, it is not an indication of bad faith. If you believe that the banks have been dragging their feet by constantly requesting additional documents, then unfortunately, it is part of the tedious loan modification process. The bank cannot even review you for a loan modification until it receives a "complete" package.

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.


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Compelling your lender to modify your loan.

Question: How can I compel my mortgage lender to modify my existing loan with terms that will relieve my financial hardship? I have submitted five requests and each time they have responded by proposing to place delinquent payments on the back of the loan, refused to reduce the principle balance and increased the monthly payment. The principal on my loan is currently $100k more than the market value of my house. I am requesting of them that they reduce my principle balance to within 10% of current market value, and reduce the interest rate to reflect a monthly payment at or near $1,5k. A number of other homeowners have informed me they were able to achieve similar terms. My lender has been calculating our debt to income ratio using our gross income which is approximately 1/2 our net income in determining our ability to pay! How can we qualify for the HAMP program, or compel our lender to grant us an in-house modification that will relieve our financial hardship? What are the options that may fit our situation?

Response: In order to qualify for HAMP, the bank must look at your gross monthly household income. If you applied 5 times and were offered loan modification terms that have increased your monthly payment, then 31% of your gross monthly income must show affordability of such modified amount . It is also possible that the packages were filled out incorrectly, as is often the case. In order to continuously be reviewed for HAMP, you need to show a change in income. For example, when you last applied, you did not have rental income but now you do, or vice versa. Also, capitalization of all the arrears is the first step to mortgage modification. If you owe more than $100,000.00 in arrears, they must get added to the unpaid principal balance, including foreclosure fees and costs, and that becomes your new principal balance. When you do not have sufficient income, then your lender may elect to forgive some of your principal, or at the very least, it may defer up to 30% by adding a balloon payment to your agreement that would mature in 30-40 years. If your income is enough to show affordability without having to decrease your payments to 2%, extending the term to 40 years, or deferring some of the principal, then you are unlikely to end up with better terms under HAMP. Traditional modification may be another option if your net income outweighs your expenses (expenses include the mortgage payment that you are no longer making). You should consider speaking to a professional in order to determine what option will work best for 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.
 

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Stopping foreclosure while unemployed

Question: I am unemployed and facing foreclosure on my home that I have owned for over a decade. The court has accepted my request for time extension since I am scheduled for mediation in a couple of weeks. I also have a formal offer from an investor as the home has been up for sale since December. This offer has been submitted to my bank and is in the beginning stages of negotiation. My bank's short sale department tells me I can look at both options and make my decision based on what mediator presents to me and the bank. Do I have a chance of saving my home through mediation if I have no income other than my unemployment benefits? Should I take any job - no matter how low the pay is to be able to negotiate better at mediation? Should I file bankruptcy instead (I have approx $20K in debt, most of which is medical bills).

Response: The purpose of mediation is to determine what type of loss mitigation option you are suitable for you in order to avoid foreclosure. If you have no income, then loan modification would not be an option. Oftentimes, borrowers do not understand what constitutes income. It is not necessarily a job. It could also be pension, disability, social security, rental income, even contribution from a family member who lives with you, etc. Basically 31% of your gross monthly income should be able to pay off your entire mortgage debt in the next 40 years at 2% interest. The 31% must cover principal, interest, taxes, and insurance. It is very likely that if you get a job, you would be able to afford a modified mortgage payment. If you file for bankruptcy, it may help you get rid of your other debts, but as far as your mortgage loan is concerned, the bank will file a Motion for Relief from Stay, which if granted, will allow the bank to proceed with foreclosure. The only true way you can modify your loan is by showing affordability.

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.
 
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Pursuing short sale on a property owned by a spouse

Question: My husband purchased a home under his name some time before we got married and everything on this property is registered under his name. The mortgage principal on this property is currently $20k less than the original purchase price, while the short sale asking price is $60k less. We didn't want to pay $40k just to sell the home, and thus a real estate agent suggested that we do a short sale, which we have been pursuing since September and thus haven't been making mortgage payments in hopes the house would be sold by now. We do have money saved up, but it is all under my name in my bank accounts. Are we doing the right thing by not making payments or should we start paying our mortgage? The bank is constantly sending us letters saying they will begin the foreclosure process on our home and our real estate agent tells us this is normal. Will this situation affect my credit score or just his? Will this matter the next time I purchase a home since we are married now? Can the bank come after us to collect?

Response: When you stop making your mortgage payments for over 90 days, the bank can begin a foreclosure action against your husband (since he is the borrower under the loan so long as the bank abides by proper procedural rules). Whether you can now resume making mortgage payments depends on whether the bank has legally commenced a foreclosure proceeding (i.e. you had to be served with summons and complaint). Short sale is an option that is pursued when you want to sell your home but your home is worth less than the mortgage. Short sale is considered an alternative to foreclosure, the benefit of which is that the bank cannot obtain a deficiency judgment against you and then try to enforce it (if you have joint assets, then the bank could try to enforce such judgment against your assets). What you have to keep in mind though is that the difference between what you owe to the bank and what the bank actually recovers at sale will be used as income when you file your tax returns, i.e., if the property sells for the asking price of your short sale, you might end up paying taxes to the IRS on the $40k that was forgiven by your lender. So, to cut more to the chase: (1) only your husband's credit score will be negatively impacted as he is the only borrower under the note (his score is already adversely affected because he is no longer making payments); (2) you will be able to purchase another home in the future...if you intend to purchase another home with your husband before his credit recovers, then you may be better off taking out a mortgage in your name (your husband can still be a co-owner of the new property but you could be the sole borrower); and (3) the bank can go after you to collect only once the lengthy foreclosure process is actually completed (remember: it does not apply if you conduct a short sale other than the money you would owe to the IRS at the end of the year).

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.
 
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Miscalculated escrow payments by the bank

Question: The bank that holds my mortgage miscalculated my escrow payments for last year and I now have a substantial shortage. They claim they were misinformed by the mortgage holder they purchased the loan from. Should I be held responsible for this discrepancy?

Response: You can request a payment history from the bank and see how the funds were applied. You should know what your escrow payments are, as you get the statements from the bank and from the city/county. Therefore, if you notice a mistake, you can argue with the bank over the wrong information. Please note that taxes typically go up every year or so, and that your taxes could have gone up a while back and you might not have noticed, while the bank has rendered the difference. Typically, if there was a mistake made on the part of the bank and you can prove that mistake, the banks will credit your account for the mistake made on their part.

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.
 
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Restarting the loan modification process after the first loan modification window has expired

Question: The bank I have a mortgage with has offered me a loan modification in September. However, due to minor changes in my records a couple of years ago, a notary public has refused to notarize my loan modification papers. I contacted my bank on the same day and subsequently in later days to come. Only now (three months later), my bank has accepted my amended records, but then said that my window for loan modification has expired two days prior to that. What can I do now?

Response: Unfortunately, the only place you can go from here is restarting the process from scratch. You will have to resubmit your paperwork and hopefully if the income is similar to what it has been at the time of previous submission, you will be approved with similar terms. The banks' timeframe for accepting paperwork late is usually stretched out until the end of the month approval was granted (i.e. the entire month of September). Unless the bank issues a new loan modification agreement with a new deadline for return, the original offer for a modification agreement is no longer on the table. The good news is that since the agreement from September has not been properly enforced, the bank can still issue a new modification agreement (although it is in the bank's discretion). You should try to speak to the same negotiator who issues the original modification agreement, supplement the bank with updated pay stubs and bank statements, probably re-date a few forms, and if the bank is working in good faith, it might re-issue the modification agreement with similar terms.

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.
 
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