Generally, homeowners facing foreclosure want to continue making payments and continue residing in the home. There are a number of foreclosure defenses which often lead to a successful resolution in these cases. Other homeowners wish to transition to alternative housing while preserving their credit ratings. Alternatives are available, but the bank usually does not automatically allow homeowners to exercise such options.
Foreclosure litigation is only part of what we do at Roemerman Law. Our experienced attorneys are also top mortgage and banking negotiators. We know how to approach banks, and we know all the procedures involved. Most importantly, we also know what is best for you and your family, because you told us, and we listened.
Pre-Foreclosure Modifications
Once the bank files a foreclosure petition, the judge usually schedules a Foreclosure Settlement Conference. In this forum, the bank has a duty to negotiate in good faith. Therefore, loan modifications are common.
But that’s not always the case. Typically, by the time the bank files legal paperwork, the homeowner is seriously delinquent. That’s especially true if, as is commonly the case, the homeowner has already, and unsuccessfully, gone through the mortgage modification process. Significant delinquency is difficult to manage through a loan modification.
So, it’s often best to proactively obtain a loan modification. Unfortunately, in pre-foreclosure negotiations, there is no good faith duty. Banks can string homeowners along and deny application for any reason. Roemerman Law’s professional team does more than even the odds. In many cases, we give homeowners a needed edge.
Foreclosure Alternatives
If a mortgage modification is not the best option, there are a number of foreclosure alternatives. Some common ones include:
- Short Sale: To sell the house quickly and escape the mortgage obligation, the homeowner sells the property at less than full value. Obviously, the bank must agree to write off the remaining mortgage balance.
- Deed in Lieu of Foreclosure: This process is essentially voluntary foreclosure. The homeowner agrees to give the deed back to the bank, and the bank agrees to halt foreclosure proceedings.
- Cash for Keys: If all else fails, banks often pay homeowners several thousand dollars to clean out foreclosed houses and make them ready for resale.
All these alternatives do not look as bad on credit reports as foreclosure. That result indicates that the homeowner gave up.
During these negotiations, an attorney must be both a legal advocate and a real estate agent. For example, banks almost never approve short sales unless a qualified buyer has already made a binding offer.
In some cases, negotiation is better than litigation. For a free consultation with an experienced New York foreclosure defense attorney, contact Roemerman Law, P.C. Convenient payment plans are available.
