Facing a foreclosure of property is scary especially when you are new to the initial process. You may wonder when is the right time to hire a foreclosure defense attorney or if you even should. Going through a foreclosure alone is stressful and mistakes are often made which is why it is a good idea to seek help from a proficient foreclosure attorney in New York.
If you want to continue residing in your home during a foreclosure and do not have any support to advise on the initial process, then a foreclosure attorney will be needed so you can continue living in your home. If you cannot afford your home and do not wish to keep it, then you may also want to hire an attorney to help you out of it without further associated debt. Please submit a free consultation form to see how a New York foreclosure attorney from Moshes Law P.C. would be beneficial to your situation.
What Does a Foreclosure Attorney Do?
This type of attorney can do many things to assist you such as, advocate in court upon your behalf, prepare defenses and submit correct paperwork to the court or opposing parties. Considering the situation, your attorney may also be capable of executing a deal with your lender or bank to escape foreclosure completely. Most importantly, options will be provided to you by your attorney. His or her experience and knowledge will avoid risks that could put you in jeopardy and amplify chances of rescuing your property.
Defenses Your Attorney Can Raise in Court
- Mistakes and errors made by the lender
- Breaches in contracts
- Violated Foreclosure Laws
- Wrongful lending practices
- Unlawful mortgage placement
In order for a wrongful foreclosure attorney to prove your property is undergoing unlawful foreclosure, it must be shown the lender failed to operate in good faith. This can be proven if the lender owed you a legal duty and that duty was breached.
Once the court agrees with your argument, then you could be granted a settlement or dismissal. If these defenses are not in relation to your case, your attorney can help you file for Chapter 13 Bankruptcy. Filing for bankruptcy will put a hold on all foreclosure affairs. Submit a free consultation form to see if these defenses apply to you.
When to Hire a Foreclosure Defense Attorney?
Foreclosures are mostly complicated but the property owner still has legal rights to their property. During COVID-19, Governor Cuoumo signed an Emergency Eviction and Foreclosure Prevention Act which prevented residents from being evicted and stopped the foreclosure of homes related to the COVID-19 pandemic. This Act placed a moratorium on residential foreclosure proceedings until May 1st of 2021. If you are undergoing a foreclosure situation during the pandemic it is still important to reach out to an attorney so you can receive proper representation for when The Act is lifted.
Active-duty military personnel can receive certain mortgage and foreclosure security under the federal law called Servicemembers Civil Relief Act (SCRA). The SCRA protects military service members who took out mortgage loans before going on active duty. Military service members who took loans after starting active duty may still receive help as well.
Protected Under the SCRA
- Active-duty service members including the Marines, Air Force, Army, Navy, Coast Guard and reservists
- Federal active-duty reservists
- Commissioned officers of the Public Health Service or the National Oceanic and Atmospheric Administration
Dual tracking unfolds once a credit service begins or continues with a foreclosure during the process of executing a loan modification alternative. If your loan service was dual tracking, then this is another reason to hire a foreclosure attorney. Dual tracking can certainly be used as a defense by your attorney.
Can an Attorney Stop a Foreclosure?
Yes, absolutely a halt can be enforced to a foreclosure by an attorney. Most real estate attorneys are especially skillful in this process. Not only will they defend you in the foreclosure proceeding but they will also negotiate with your lender or creditors to find alternative solutions in assisting you to maintain residency on your property.
Foreclosure Attorney Fees
Most foreclosure attorneys have 3 ways of constructing their fee agreements:
- Billing at an hourly rate
- Collecting a flat rate fee
- Billing a monthly rate
Positive and negative outcomes occur from these 3 options. The benefit of being billed at an hourly rate is you will only pay for the time spent on your case. The disadvantage is that you will not be given a fixed spending amount and the hours could quickly add up depending on how much work is needed for your case.
For option 2., the benefit of paying a flat rate fee is that you will already know the exact price. Unfortunately, not all attorneys offer this option and you will usually need to pay the amount upfront.
For option 3., the positive outcome of paying a monthly fee is also knowing how much it will cost each month, which makes it easier to budget. The negative outcome is the payment must be paid each month even if little activity takes place.
You should promptly contact an experienced foreclosure defense attorney after being served a summons. You will have 20 days to submit a written answer to the foreclosure summons and complaint if you were served personally. If served by any other way other than in person, then you will have 30 days to submit a written answer.
It is best to hire an attorney who has experience in foreclosure, a foreclosure defense attorney or a real estate attorney.
Your attorney may advise you take these options considering your situation:
Apply for a loan modification
Negotiate a short sale
Negotiate a deed in lieu of foreclosure
File for Chapter 13 Bankruptcy
A modification will not pay off your mortgage but it will modify the terms of your original loan. A foreclosure cannot continue once a change in the loan is made.
A short sale takes place when a homeowner sells their home for a smaller amount compared to their original mortgage. A deed in lieu of foreclosure is a document that conveys the title of a property from the owner to the lender. In doing so, the owner is released from the mortgage debt.
Filing for a Chapter 13 Bankruptcy will allow a plan to take place for an individual with regular income to repay their debts.
Yes, your attorney will submit an answer with concurring defenses. Discovery demands and responding to motions will also delay the foreclosure process. Your attorney will know how to make use of the legal system so you can stay in your home for as long as possible.
The bank or financial institution will start sending out letters or making phone calls informing you that you are not up to date on your mortgage bills. If you do not bring the balances to current within 90 days, then the bank will call the entire balance you owe and send an attorney to personally serve you a summons and complaint. You will then have 20 days to respond by submitting a written answer and 30 days to respond if you were not personally served.
If you do not obtain an attorney to defend yourself and submit an answer to the complaint, you will have reverted to the foreclosure lawsuit. The financial institute will move against you without you having the potential to present an argument.
If the lender or new owner wishes to enter into a rental agreement with you then you can stay in your home. If the lender or new owner does not wish to enter into a rental agreement, then an eviction proceeding will be commenced in Landlord/Tenant Court for the purpose of having you removed from your home.
Competent eviction defense council can still fight the eviction process for a considerable amount of time if an eviction proceeding is being brought against you.
Contact an Experienced Foreclosure Attorney
Contact a proficient New York foreclosure attorney today and schedule a complimentary consultation. The Law Office of Yuriy Moshes P.C. is ready to lead you through the process and aid you in understanding all of your option(s) and which better suit you.