New York Foreclosure Crisis Continues

Even though overall foreclosure rates across the United States decreased by more than 24 percent from July 2014 to July 2015,¹ New York still has one of the highest rates of foreclosures in the nation—second only to New Jersey. Even the State Comptroller recently issued a report² indicating that the foreclosure crisis in New York was not even close to over and, in areas surrounding New York City, the foreclosure rate seems to be only getting worse. For example, the report shows that pending foreclosure cases in the Long Island area increased by 63 percent from 2013 to 2015 and there were close to 41,000 pending cases.

On top of causing tens of thousands of homeowners to face threat of losing their homes, the New York court system has also been affected by the overwhelming number of foreclosures in the state due to the judicial foreclosure process. Homeowners and lenders reportedly spend an average of 900 days on a single home from the date of the court filing to the date of the final foreclosure sale. With a huge number of cases lingering in the legal system and the number of new foreclosure cases being filed, these mortgage cases make up an estimated 30 percent of the caseload of the civil courts.

In addition to clogging the court system, the length of a foreclosure case makes it more difficult for struggling homeowners, as well. During the case, added interest and fees continue to pile up, making it more and more difficult that they will overcome their debt issues. The thousands of families who are regularly displaced from their houses then often put a strain on the communities and on other taxpayers. Many potential solutions to the New York foreclosure crisis have been suggested, but none have been effectively enacted to begin to solve the problems.

Consult with an experienced foreclosure lawyer as soon as possible

If you are one of the many homeowners facing foreclosure, your first call should be to a skilled foreclosure attorney at the Law Office of Ronald D. Weiss. We strive to protect the rights of homeowners in all situations and help them defend against foreclosure. Please call today at 631-296-0912 for help.

References:

¹http://www.housingwire.com/articles/35001-corelogic-national-foreclosure-inventory-shrinks-28-since-last-year

²http://www.housingwire.com/articles/34785-new-york-comptroller-states-foreclosure-crisis-far-from-over

Why Was I Denied for a Loan Modification?

Modification of your mortgage loan¹ is an important tool for struggling homeowners to avoid foreclosure and stay in their homes. Unfortunately, some homeowners are surprised to learn that their application for a modification was denied. Denials can occur even if homeowners actually meet all of the qualifications for a modification.

Too many property owners believe that they can handle the application process on their own, without the assistance of an experienced foreclosure attorney. However, mistakes during the application process are a primary reason for denial. The following are some errors that homeowners commonly make on modification applications:

·       You fail to meet deadlines for submitting all of your paperwork.

·       You calculate your income incorrectly for debt to income (DTI) and net present value (NPV) calculations. This is a particular risk for self-employed homeowners.

·       You disclosed sources of income that should not be considered for the purposes of a loan modification.

·       You fail to send all of the requested documentation. Lenders request paperwork with updated numbers on a monthly basis and, too often, documents are mysteriously lost and can be requested again. If you have a full-time job (or two), a family, or other important obligations, you may not have the time and energy to devote to these constant requests for documentation.

·       Your letter of hardship² did not contain the right information. Lenders have specific requirements for “hardship” when deciding whether or not to approve a loan modification. Not only do you have to prove hardship in your latter, but also express your willingness and ability to pay your mortgage if the modification is granted. This balance is often difficult to achieve if you are not familiar with lender policies.

Contact an experienced foreclosure attorney for assistance

All of the above errors can be easily avoided if you contact a qualified foreclosure lawyer for help with the modification application process. At the Law Office of Ronald D. Weiss, P.C., we have helped numerous homeowners obtain loan modifications and avoid foreclosure. If you would like more information on how we can help you, call today at 631-296-0912 for a free consultation.

References:

¹http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/nsc/faqlm

²http://www.nytimes.com/2013/01/06/realestate/mortgages-writing-the-hardship-letter.html?_r=0