NEW YORK MORTGAGE FORECLOSURE

Yesterday, I attended a webinar CLE via Empire Justice Center on Ethics in Foreclosure Litigation. Representing homeowners in defending mortgage foreclosure actions in New York can bring up ethical issues just as much as ethical issues arise with attorneys representing the banks (viz., robo signing affirmations now known as the certificate of merit).

I note the recent article from Bloomberg News:

Secret Inside BofA Office of CEO Stymied Needy Homeowners

MORE NEW ISSUES IN FORECLOSURE

There are many stories on this:

Bank of America Lied to Homeowners and Rewarded Foreclosures, Former Employees Say

This action is pending in US District Court Massachusetts but the plaintiffs are seeking class certification and New York is one of the states that would be covered in the proposed class.

Here is a link to Plaintiff's memorandum of law for class certification which describes in more detail the nature of the action:

IN RE BANK OF AMERICA HOME AFFORDABLE MODIFICATION PROGRAM (HAMP) CONTRACT LITIGATION CLASS CERTIFICATION MEMORANDUM OF LAW

GUEST POST ON HAMP - STEPHEN K. HACHEY, ESQ.

Federal Home Affordable Modification Program (HAMP) Explained

The federal Home Affordable Modification Program (HAMP) was implemented to reduce the number of foreclosures, support the housing industry and keep mortgages more affordable for the millions of Americans living in homes that are worth less than what they owe. The idea behind this program is that if banks will work with their borrowers to lower the monthly payments and interest rates, homeownership will be more affordable in the short term as well as the long term and both the individual homeowner and the housing market as a whole will be more secure. This program works well for the banks too, because it allows them to give homeowners an opportunity to fortify their mortgages. Financial institutions do not want to foreclose on properties unless it’s absolutely necessary; it only leaves them with a flood of properties instead of repaid mortgages.

There are certain conditions that need to be met in order for you to qualify for HAMP. For starters, you must be trying to modify the loan on your primary residence. Banks are not interested in helping you avoid foreclosure on vacation homes or investment properties. Your primary residence should be the focus of your efforts to work with your lender through HAMP. Some exceptions can be made if you own a property that is currently being rented out, or you intend to rent out the residence. If that is the case, you may still qualify for a modification through HAMP.

You must have obtained your mortgage on or before January 1, 2009. Any loans made after that date are likely using reasonable terms and interest rates, so you can only use HAMP to modify a mortgage if it is an older loan. The amount you owe must not be higher than the limits currently imposed by the government. For a single family residence, you cannot owe more than $729,750 on your mortgage.

There must be some sort of financial hardship that is making it difficult for you to meet your mortgage obligations. This could be a health problem, unemployment, a divorce or some sudden and unexpected change to your financial standing. HAMP only applies to people who are currently delinquent in their mortgage payments, or in danger of becoming delinquent due to that financial hardship.

While financial hardships are expected, in order to qualify for HAMP, you must also be able to demonstrate you have sustainable income. The amount of money you earn must be able to cover the cost of your mortgage payments on a monthly basis. Finally, you must have an acceptable criminal record. You cannot take advantage of HAMP if you have been convicted of a felony theft, robbery, money laundering or larceny in the last 10 years.

Homeowners who meet the qualifications of HAMP should talk to their lenders and find out how to take advantage of this federal program. Modifying a mortgage to make it more affordable is a great way to keep your financial future secure and to ensure you will be able to retain your home as both a place to live and a reliable investment for the future.
 

This post was written for Jon Michael Probstein by Stephen K .Hachey. Stephen is an Orlando real estate lawyer specializing in loan modifications, short sales, foreclosure and much more. He is also the owner of his own practice, the Law Offices of Stephen Hachey, PA. This article is for general informational purposes only and does not establish an attorney-client relationship. Please contact a licensed attorney in your state of residence. For more information on our services, please visit our website at www.floridarealestatelawyer.org/.

 

 

MORTGAGE FORECLOSURE

"The government is overseeing two large, interrelated efforts to compensate homeowners who were harmed during the foreclosure crisis: the National Foreclosure Settlement and the Independent Foreclosure Review."

Below is a link to a FAQ from ProPublica to explain who is eligible for these programs and how people can apply:

ProPublica FAQ on The National Foreclosure Settlement and Independent Foreclosure Review

NEW YORK MORTGAGE FORECLOSURE

A website has been set up for consumers regarding the National Mortgage Settlement:

National Mortgage Settlement

Of course, you will note that the site does not yet have the full legal documentation underlying the settlement. The primary reason for this is that the mortgage settlement is not fully finalized. Additional banks still have the opportunity to join. And it appears that when the group of banks joining the settlement is finalized, the full documentation will arise.

An article discussing this is set forth herein:

BUSINESS INSIDER - Don't Be Sucked Into The Hysteria About The 'Missing' Mortgage Settlement Documents

NEW YORK MORTGAGE FORECLOSURE

In discussing the various issues of the mortgage foreclosure crisis, whether in New York or other states, one must realize that it is not just the distressed homeowner who suffers. A recent study came out on the effect the foreclosures crisis has on neighborhoods as discussed in Crain's New York Business:

CRAIN'S NEW YORK BUSINESS - Distressed buildings bring down their neighbors

NEW YORK MORTGAGE FORECLOSURE

The big news of course is the $25 billion foreclosure joint federal-state settlement that was announced yesterday. How will affect us? Here is one view:

FORBES - How The $25 Billion Foreclosure Settlement Will Really Affect The Housing Market

NEW YORK MORTGAGE FORECLOSURE

As I attend another CLE course today at Nassau County Bar Association on trends in mortgage foreclosure, it is interesting to note the following article from yesterday's New York Times(my experience is in Nassau and the description in the article would apply equally there in my view:

NY TIMES - Push to Avert Foreclosures Hits Court Logjam