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Mortgage Foreclosure in New York State
The Law Offices of Neil E. Colmenares, P.C. are attorneys who concentrate in the complex area of Bankruptcy Law with an emphasis on Mortgage Foreclosures in New York State. We show how to stop Mortgage Foreclosure and save your home by Foreclosure Attorneys. We discuss Modification, Forbearance, Short Sale and Deed in lieu of Foreclosure. Foreclosure Mortgage Lawyers in Queens, Nassau and New York. Know Mortgage Foreclosure law and Attorneys.
If you are in foreclosure, you know how stressful life can be. We can help but you must act quickly. Each day that goes by when you are in foreclosure is a day that you are eating away at the equity in your home and are liable to the bank for more fees. Thereby increasing the likelihood that you will lose your home.
What are my options if I am in Foreclosure?
Assuming there are no irregularities in the Foreclosure process, generally speaking, you can go the Non-Bankruptcy or the Bankruptcy route.
The Non-Bankruptcy route- This office can assist you in dealing with your mortgage company by helping you enter into either a Modification, Forbearance, Short Sale, or a Deed in Lieu of Foreclosure.
A Modification is where the mortgage company adds the delinquent mortgage payments to your loan balance. This is usually added onto the final mortgage payment.
A Forbearance requires that the homeowner pay a part of the delinquent mortgage payments over a set amount of time in addition to the regular monthly mortgage payment. The objective here is to allow you to cure your default over a period of time.
A Short Sale/Pre-Foreclosure Sale occurs when there is no equity in your home and you owe more than your home is worth. If certain conditions are met, the mortgage company may accept less that the total loan payoff. Under this option, you leave your home and surrender all ownership interests.
A Deed in Lieu of Foreclosure is a voluntary surrender of the property without resorting to the foreclousure process. Under this option, you leave your home and surrender all ownership interests.
The Bankruptcy route- There are generally speaking, two bankruptcy options.
Chapter 7 Bankruptcy is an option if there is less than the 'homestead' amount of equity in your home. New York has what is called a 'homestead' exemption which means you can keep the first $50,000.00 in equity in your home despite filing Bankruptcy ($100,000.00 for married couples who own the property jointly). If there is more than the homestead amount of equity and you file Chapter 7, you will have to "buy" that excess equity from the Trustee to keep your home. This in generally not an option for most homeowners.
Example- John & Jane Doe jointly own a home in New York with a $700,000.00 appraised value and they file Chapter 7 Bankruptcy. To pay off the mortgage is $575,000.00. This leaves $125,000.00 in equity. Subtract the $100,000.00 homestead exemption and this leaves $25,000.00 in non-exempt equity. John & Jane Doe would have to pay the Trustee $25,000.00 if they want to keep their home. If they cannot pay the Trustee $25,000.00, the Trustee would then sell their home and give them the first $100,000.00 in equity after the mortgage and expenses have been paid. The balance would go to pay John & Jane Doe's creditors.
Example- 'George Single' owns a home in New York with a $700,000.00 appraised value and files Chapter 7 Bankruptcy. To pay off the mortgage is $575,000.00. This leaves $125,000.00 in equity. Subtract the $50,000.00 homestead exemption and this leaves $75,000.00 in non-exempt equity. 'George Single' would have to pay the Trustee $75,000.00 if he wants to keep his home. If he cannot pay the Trustee $75,000.00, the Trustee would then sell his home and give him the first $50,000.00 in equity after the mortgage and expenses have been paid. The balance would go to pay "George Single's' creditors.
Chapter 13 Bankruptcy is an option for people who are facing a mortgage foreclosure. Chapter 13, with limited exceptions, stops the foreclosure process and gives you a breathing spell. Generally speaking, you will enter into a repayment plan over a number of years so that you can get caught up on the missed payments (this is similar to a forbearance agreement as discussed above). How much you have to repay will depend on a variety of factors.
If I file Bankruptcy, then what? There is a federal law that requires a mortgage company to STOP A FORECLOSURE ACTION IMMEDIATELY upon filing Bankruptcy and gives the homeowner a chance to catch up on their mortgage payments in manageable monthly installments (restrictions apply). Under Chapter 13, individuals with steady incomes who want to pay their debts can do so with the protection of the Federal Court and without the harassment of collectors and attorneys (such as the law firm which commenced the foreclosure action). Special provisions apply to be eligible for Chapter 13.
Example- John & Jane Doe (as discussed above) would have to pay at least $25,000.00 plus expenses over a maximum monthly period of 5 years. This means a manageable monthly payment of approximately $416.00 plus expenses. In this example, if John & Jane Doe make the $416.00 monthly payment and make their regular montly mortgage payment, then they can keep their home!
We have experience in helping homeowners stop foreclosure and can help you save substantial money over refinancing and also stop harassment by your creditors. Since, generally speaking, your home is your most valuable asset, you want to do everything within your power to keep it.
Our Queens, Nassau & New York Mortgage Foreclosure Bankruptcy Attorneys and Lawyers will advise you on which Chapter of the Bankruptcy code is best for you, if any. Sometimes Bankruptcy is not the solution. Call us today to discuss all of your options.
The most important thing to remember is the sooner you confront the Mortgage Foreclosure, the more likely you will be able to save your home.
For additional information about Bankruptcy, click here to read recent articles by Mr. Colmenares.
Want to read the Bankruptcy Code? If so, click here.
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We show how to stop Mortgage Foreclosure and save your home by Foreclosure Attorneys. We discuss Modification, Forbearance, Short Sale and Deed in lieu of Foreclosure. Foreclosure Mortgage Lawyers in Queens, Nassau and New York. Know Mortgage Foreclosure law and Attorneys.
Home Page, Contact Us, Recent Articles, Statement of Client's Rights and Responsibilities, Site Map, Immigration Matters, Espanol
Bankruptcy, Frozen Bank Accounts and Wage Garnishment, Chapter 7 Overview, Chapter 13 Overview, Mortgage Foreclosure, Discharging Taxes in Bankruptcy, Discharging Student Loans in Bankruptcy, Why Credit Card Debt Consolidation Does Not Work, Bankruptcy for Creditors
Business, Buying and Selling a Business In New York State, Commercial Lease Negotiation in New York State, Liquor License Procurement in New York State
*Prior results do not guarantee a similar outcome.
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