Long Island Foreclosure Defense In A Nutshell

There are different kinds of lawyers each handling a variety of cases. A very common case that is regularly defended in court is foreclosure. A number of elements comprise a typical defense strategy but what is it all about really? When it comes to the concept of Long Island foreclosure defense this basically sums up all potential strategies that can be used to protect the rights of homeowners, the ones who are heavily distressed over the fact that their homes will be repossessed.

legalThere was a time when foreclosure issues were limited but a case of subprime mortgage lending changed everything. Homeowners were set up to default on their monthly payments allowing financial institutions to gain control over the properties that the former worked extremely hard for. As the selling of subprime mortgages was deemed unethical not to mention fraudulent, homeowners fought back and various Long Island foreclosure defense strategies came into play.

The array of defense strategies does not only focus on fighting claims from lending firms but also includes proper education on foreclosure for the homeowners. Different situations of foreclosure exist and there are particular tactics that can be applied to each one. It is important for lawyers to have the right plan of action for each distinct case. Some of the consideration factors that come into play include the onset of missed payments and by what degree, the level of equity involved if any, the homeowners’ current financial situation, and overall eligibility to own a home.

If homeowners simply need a bit of help with the payments, they can apply for a loan modification setup. This is a simple type of Long Island foreclosure defense that does not involve the courts. A lawyer is still needed though because formal contracts have to be signed after a petition is filed. In this case, credit terms may be extended or mortgage payments may be lowered.

Mortgage forbearance is another tactic worth considering. When it comes to this strategy, a lawyer files a petition with the lending institution to postpone any attempts at foreclosing a property. A payment extension may be granted in the process. This is an excellent defense to consider if a homeowner facing foreclosure is only being plagued by short-term financial hardship.

Aside from lowering the necessary payments, there is another option that a homeowner can take. This kind of Long Island foreclosure defense involves making a lump sum payment to cover all late fees and penalties that may have arisen from the delayed mortgage payments. This is called mortgage reinstatement. Basically, the mortgage will be reinstated after all penalty dues have been settled. In the meantime, foreclosure will indefinitely be postponed.

So far, these three strategies are ideal for homeowners who have access to limited funds. There is another strategy that can be considered but this one involves a declaration of bankruptcy. The federal courts have to be involved with this one as a formal bankruptcy petition has to be applied. Considering how this tactic does not lead to any regaining of income for the lending institutions, it is the most difficult strategy to emerge victorious from.

Defending a homeowner against foreclosure is not only about fighting to help someone maintain a home. There are times when defenses are used to give the struggling homeowner a bit of dignity. Records of mortgage default can have a negative impact on someone’s financial history and credit rating. Some homeowners who simply have no money for mortgage payments can choose to leave their homes without having to undergo a court case let alone have to pay for costly legal fees.

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