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New York Foreclosure Settlement Conferences

New York Foreclosure Settlement Conferences

New York Foreclosure Settlement Conferences Can Save Your Home

NYS law requires mediation to assist borrowers to avoid foreclosure. New York Foreclosure Settlement Conferences allow borrowers a face-to-face meeting with their lender. Homeowners can also benefit even if they can’t afford to keep their homes.

What Are New York Foreclosure Settlement Conferences?

Typical New York foreclosure settlement conferences are a meeting between you and your lender. Additionally, the settlement conference provides an opportunity to work out a deal with your lender.

You and your lender try to negotiate a way for you to keep the home. You may also be able to negotiate a Cash-For-Keys deal or a Deed-In-Lieu of foreclosure. These two options are especially relevant if you have to give up the property. 

Potential outcomes of a settlement conference include:

  • loan modification, or
  • forbearance agreement, or
  • short sale, or
  • deed in lieu of foreclosure.

New York Foreclosure Law and New York Foreclosure Settlement Conferences

New York performs their Foreclosures judicially. Hence, this means the lender must foreclose through the state court system. Therefore, the lender initiates the foreclosure. They file a complaint against the homeowner and then the court then serves the summons on the borrower. 

In addition, New York law requires a settlement conference within 60 days of the filing of the proof of service. 

Homeowners are entitled to a court settlement conference during foreclosure. The property must also fit the following criteria:

  • residential, and
  • owner-occupied, and
  • a one to four unit family dwelling or condominium.

Notice of Settlement Conference

The court will also send a notice to the parties advising them of:

  • the time and place of the settlement conference
  • the purpose of the conference, and
  • the documents that they should bring to the conference.

Required Documents for A New York Foreclosure Settlement Conference

The lender and the borrowers must provide certain documents at the settlement conference.

Documents the Borrowers Must Provide

The documents that the borrowers must provide include:

  • proof of current income (such as two most recent pay stubs), and
  • most recent tax return, and
  • most recent property tax statements.

Documents the Lender Must Provide

The documents that the lender must provide include:

  • the payment history, and
  • the mortgage, and 
  • the note, and
  • an itemization of the amounts needed to cure and pay off the loan.

The Settlement Conference

At the settlement conference, the court will:

  • discuss the rights and obligations of the parties, and 
  • determine whether the parties can reach a resolution to avoid foreclosure, and
  • evaluate workout/settlement options (such as payment schedules or loan modifications), and
  • design a plan to streamline subsequent court proceedings to reach a mutual settlement.

Furthermore, the lender and borrower are also required to negotiate in good faith. Hence, the goal of the settlement conference is to reach a deal. A deal that is almost always mutually beneficial to both parties. The court may also appoint an attorney to represent the borrower if they attend without one.

Brooklyn foreclosure settlement conferences don’t guarantee that you will avoid foreclosure. However, it doesn’t hurt to participate. Attending a settlement conference also gives the judge the impression you are trying to resolve the dispute.

Have your lawyer call us at 888-574-7771 


Strong New York Foreclosure Defenses 

new york foreclosure defenses

Foreclosure Laws In New York Allow For Stronger New York Foreclosure Defenses 

New York law allows for strong New York foreclosure defenses. Furthermore, state law ensures that the foreclosing party has the correct documents in place. New York law requires that the foreclosing party “produce the note” to prove that it owns the loan.

The law also states they must produce it at the beginning of the foreclosure. In addition, the law also takes steps to reduce the extremely long amount of time that it takes to foreclose in New York.

New laws have also been passed to speed up foreclosure cases. Foreclosure cases no longer take 36-48 months to complete. New York courts have foreclosures passing through the system in less than 6 months.

NYS Foreclosure Process Offers Strong Nassau County Foreclosure Defenses

New York is a judicial foreclosure state. This means the lender must file a lawsuit against the homeowner in state court. The lender initiates the foreclosure by filing a complaint with the court. The borrower is served with a complaint and summons. 

The lender has the Preponderance of Evidence. This means the lender must prove they have a right to bring the action.

New York Law: Banks Must Produce the Note

New York Governor Andrew M. Cuomo signed a new foreclosure bill into law in 2013. The new law requires banks to produce the note at the beginning of the foreclosure. Yet, many times foreclosure mills forget to do this. This one of the of the many strategies we use for New York foreclosure defenses.

Promissory Notes and Mortgages

You signed both a mortgage and a promissory note when you closed on your loan. The promissory note is what establishes your liability to pay your mortgage loan. The mortgage creates a lien on the property. Consequently, the holder of the original note is the only party that has the right to enforce the debt by foreclosing on the property.

The lender does not have legal standing to foreclose on your home if it does not hold the original note. 

Post-2013 Foreclosure Requirements Aid Nassau County Foreclosure Defenses

S.4530-A/A.5582-A) passed in 2013 requires that before any new foreclosure action on an owner-occupied residential property, the foreclosure attorney must file copies of the following documents with the court:

  • a copy of the note (or the attorney must file a lost note affidavit if the document has been lost or destroyed)
  • copy of the mortgage, and
  • any modification agreements, and
  • all mortgage assignments. 

New York Law: Reducing Foreclosure Timelines

New York had one of the longest foreclosure timelines in the country. The average foreclosure averaged around three years. One reason for this is that the foreclosure mill attorney held off on filing a mandatory affirmation after filing the lawsuit. Affirmation is the documents the attorney certifies that the plaintiff is the creditor and is entitled to enforce the rights under the loan documents. In many cases, this also prevented the case from moving forward.

The new law remedies this problem by requiring the foreclosure plaintiff’s attorney to file a “certificate of merit” at the beginning of the foreclosure. As a result, this also enables cases to move to the settlement conference process within 60 days of the filing of the affidavit of service.

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Brooklyn Foreclosure Cases Face Rocket Docket

Brooklyn Foreclosure

Brooklyn Foreclosure Cases Face Rocket Docket As Court Tosses Inactive Cases And Speeds Up Active Cases

Brooklyn foreclosure cases could be facing a Rocket Docket. Kings County Supreme Court judges are fed up with the backlog of foreclosure cases clogging their dockets. Judges are also fed up with uncooperative homeowners who they perceive are milking the legal system. 

Kings County Supreme Court quietly dismisses thousands of Brooklyn foreclosure cases in May.  homeowners with pending cases.

The court planned to dismiss nearly 1600 foreclosure cases filed before Jan. 1, 2016 that have seen no court activity after Sept. 30, 2016. It quietly published a notice of the administrative dismissal in the New York Law Journal.

Lawyers say the court’s actions would be extremely harmful to homeowners battling lenders. For one, all of the motions a homeowner had filed taking issue with the lenders’ claims would be lost. In addition, many of the delays are due to the lenders dragging their feet. Lawyers also say that dismissing the case without fault to either side would allow the lenders to relaunch their cases.

In addition, lawyers say that it’s highly unlikely that most of the self-representing owners would have seen the notice buried in the “Court Notes” on page 11 of the journal last month.

K. Scott Kohanowski of City Bar Justice Center said:

None of the homeowners received actual notice of this calendar call. They have legal defenses and rights they are going to lose.

Lawyers have complained that since the Brooklyn courts whittled the 25 judges previously assigned to handling foreclosures down to just four judges. The reforms seem to focus on resolving cases quickly to clear the backlog. Lawyers argue judges are creating a “Rocket Docket” and not considering the facts of the case or giving homeowners a fair hearing.

 

 


A New York Bankruptcy Does NOT Stop A Foreclosure!

New York Bankruptcy

A New York Bankruptcy Does NOT Stop A New York Foreclosure!

You could find yourself hiring a foreclosure attorney after wasting thousands of dollars on a New York bankruptcy lawyer. You could also find yourself with both a foreclosure and a bankruptcy on your credit report.

Most New York bankruptcy lawyers also won’t explain to you that a bankruptcy stains your credit report for ten years.

A foreclosure only stays on your credit report for 7 years. You can also qualify for a new mortgage within 2-3 years after a foreclosure. As a result, negotiating a loan modification with a foreclosure attorney or walking away is a better strategy. That is unless you have a New York bankruptcy lawyer who understands foreclosures.

Re-Affirming Your Mortgage In Bankruptcy

New York Bankruptcy

Most New York Bankruptcy Lawyers will convince you to reaffirm your mortgage.

When you sit down with your New York Bankruptcy Lawyer they will discuss reaffirming your mortgage in foreclosure.

Reaffirming your mortgage means the mortgage will not be included in the bankruptcy. Hence, the mortgage in foreclosure is off the table in the bankruptcy.

Most bankruptcy lawyers use an assembly line process as a business model. So they will encourage you to reaffirm your mortgage. They don’t want to spend hours negotiating a loan modification with your lender when they could be making money.

You will also be required to make your mortgage payments when your Chapter 7 bankruptcy is discharged.

A Chapter 13 bankruptcy works differently. The bankruptcy trustee will require you to pay your original mortgage payment plus the renegotiated payment for your other debt.

Mortgage lenders can also require you to resume making payments immediately by asking the bankruptcy judge to lift the stay.

Post-Bankruptcy Foreclosure 

New York bankruptcy

Many homeowners find themselves facing foreclosure after wasting thousands of dollars on a New York bankruptcy.

Most New York bankruptcy attorneys won’t tell you what to expect after a bankruptcy. It’s generally because they don’t care. The lawyer has your money and they have done their job. So that is that.

One of two things can happen.

You will receive a disturbing notice from your lender. This notice informs you your interest rate and payment were being jacked up.

This forces the homeowner to accept these terms or endure another foreclosure.

Lenders would rather take a more direct approach. In most cases, lenders will just move in for the quick kill and resume the foreclosure. Lenders can and will foreclose on the mortgage lien placed on the property.

Lenders will do the same thing with people who file Chapter 13 bankruptcy. Yet, they will usually wait out the five years of the Chapter 13 protection. They will use the pre-bankruptcy arrearages as the excuse. Learn about your options before filing bankruptcy. It could save you thousands of dollars. Call the Law Offices of Steve W. Stutman for our clients needing a bankruptcy during a foreclosure.

Learn more at Facebook or call the Law Offices of Steve W. Stutman today at 888-574-7771.


Want To Stop Your New York Foreclosure?

New York Foreclosure

New York Foreclosure

You Stop Your New York Foreclosure By Acting Like Michael Corleone Not Joan Crawford

If you want to stop your New York foreclosure you need to let go of all emotion. It’s harsh but it is exactly what I tell my potential clients.

I tell them I don’t care if it’s where you raised their kids or if Fluffy the Cat is buried in a shoe box in the backyard. I tell them I don’t care because the bank doesn’t care and the judge doesn’t care. Everyone involved in the foreclosure looks at the foreclosure as nothing more than a business negotiation or a contract dispute. It’s about money and nothing more. So quit acting histrionic and emotional.

“If you ask me, fear, anger — two sides of the same coin. You gotta let go of both.” – Captain Kara Thrace, Battlestar Galactica

When I tell my clients to quit getting emotional. The wife starts getting all Joan Crawford on me with her tears flowing like Niagara Falls. Then the husband begins calling me a heartless asshole. 

I explain to them that their histrionics are exactly what the bank wants to see. If they don’t want to lose their home then they need to quit acting like a battered woman in a Lifetime Channel movie.

I usually tell them I’m leaving the conference room. They have 15 minutes to pull themselves together and purge the emotions out of their system. When I come back if they are still in the room then I know they are serious about saving their home.

I explain to them that the only difference between an average homeowner and someone like Donald Trump is the dollar amount of the debt.

It’s A Business Negotiation. Not A Marriage Break-Up

foreclosure

Acting like Joan Crawford in Mommie Dearest won’t help you fight your foreclosure.

Banks and corporations renegotiate debt obligations all the time. Creditors pound their chests and threaten billionaires just like they do with average homeowners. Bankers try to bully everyone and they’ve been doing it since the days of Medici Family. Lenders will manipulate, lie, cheat and steal when it comes to their own self-interests just like everyone else.

I also explain to my clients that guys like Donald Trump come out on top because they don’t get emotional. They don’t cry, they don’t make sarcastic comments at mediation hearings and very rarely do they cry about their troubles in public. They approach it like a poker player or a military strategist.

I tell homeowners to channel their inner Obi-Wan Kenobi. If you remember Kenobi told Luke Skywalker in Return of the Jedi, “Bury your feelings deep down, Luke. They do you credit, but they could be made to serve the Emperor.” 

Emotional outbursts and histrionic rants on the internet give the banks and their lawyers the insight about the mind games they can play on you to manipulate you. 90% of all foreclosure cases are lost because people lose their focus and allow their emotions dictate their actions. Homeowners post incendiary and inflammatory statements about the lender or the lender’s lawyer on social media. This only creates serious problems for your case but could set you up for a defamation lawsuit.

Be Stone Faced Like Michael Corleone

New York Foreclosure

The key to any successful foreclosure defense strategy is to turn the tables on the lender. You need to get in the mid of opposing lawyer and let them get emotional. The best way to do that is for you to shut the fuck up and do not post things on social media.

I tell homeowners to let their lawyer do their talking. Any skilled lawyer knows how to play Jedi mind tricks. The attorney and I will also tell you if your case has any merit and it is one that may garner media attention. We tell clients to let us or someone with experience handle the media.

I then pop in a DVD of The Godfather II. I fast forward it the scene when Senator Geary tries to shake down Michael Corleone for a bribe. Michael calmly responds with, “Senator? You can have my answer now if you like. My final offer is this: nothing. Not even the fee for the gaming license, which I would appreciate if you would put up personally.”?

Senator Geary walks out of Michael Corleone’s Lake Tahoe compound in a huff but Michael kept his cool.

I then explain how after showing some restraint, some patience and getting some information about Senator Geary, the Corleone Family get their casino licenses and Senator Geary essentially becomes Michael Corleone’s bitch.

I remind them that people who win keep their cool during the foreclosure process. We may not always choose our circumstances, but we can choose how we handle them. 


Don’t Put Fake Liens On Your Home To Stop A Foreclosure

Fake Liens

Florida Man Put Fake Liens On His Foreclosed Home. He Now Faces 30 Years In Prison.

People burn up my phone asking about the strategies they read on the internet to thwart a foreclosure. One strategy involves putting fake liens on the property. Homeowners think they can force the lender to negotiate a hefty cash for keys deal or scare them away altogether.

Placing fake liens on your house isn’t going scare away a lender who wants to foreclose. You will not get the six-figure cash for keys deal by placing a fake lien on your home.

Placing fake liens on a property in foreclosure is considered obstruction of a civil lawsuit. It is also highly illegal.

Mark Yoder Harasses Tequesta Cops After Giving Him A Ticket

Take Mark Alan Yoder of Florida. Yoder was convicted of wire and mail fraud. He is also now facing up to 30 years in prison and/or a $1,000,000 fine.

Yoder received a traffic citation on October 18, 2010, for driving without a seatbelt from a Tequesta Police Department Officer. He objected to the ticket and demanded to speak to a supervisor. Furthermore, Yoder also claimed the officer did not have any authority for the stop. Consequently, the officer’s supervisor arrived on the scene to provide assistance. As a result of the stop, Yoder began sending a succession of fraudulent formal demands and fake liens claiming the two police officers and the Tequesta Police Department each owed him $150,000 in damages.

Yoder also sent similar demands for large damage payments to officers. He also filed liens against executives of the bank that was foreclosing. Yoder filed a fake lien against his former property after the final judgment of foreclosure.

Yoder claimed he was owed thousands of dollars for his maintenance of the home prior to the foreclosure. Of course, these claims were all fraudulent. Yoder renewed the fraudulent mechanic’s lien, with successive filings, in 2014 and 2015.

Read more at MFI-Miami


Is Lying On Mortgage Loan Applications Worth 20 Years In Prison?

Mortgage Loan Applications

Florida Man Faces 20 Years In Prison After Pleading Guilty to Making False Statements in Mortgage Loan Applications

Ask Randy Platfoot what can happen when you make false statements on mortgage loan applications. Platfoot pleaded guilty to making false statements on mortgage loan applications. He now faces a maximum penalty of 30 years in federal prison for lying on those mortgage loan applications.

Platfoot filled out two mortgage loan applications from Washington Mutual Bank between September 2005 and April 2007. He was attempting to purchase properties in Myakka City and Sarasota.

Platfoot borrowed $985,000 to purchase a 1,312-square-foot house on 49 acres in Myakka City.

JPMorgan Chase won a $914,065 foreclosure judgment against Randy L. Platfoot. As a result, the property was sold at auction by the Manatee County Clerk of Court in November of 2014.

Platfoot made false statements about his income on the mortgage loan. He also omitted the lack of subordinate financing in connection with one of the properties. Washington Mutual Bank suffered financial losses after Platfoot defaulted on both loans.

On September 28, 2008, Washington Mutual went into FDIC Receivership and on 9/25/2008 simultaneously filed Chapter 11 Bankruptcy in Delaware (Case #08-12229).

On September 30, 2014, US Bank won a $2.054 million foreclosure judgment against Platfoot at 3435 La Paloma Ave. in Siesta Key. Platfoot had owned the land on that property for more than 20 years. He built a 4,000 square foot house on the property in 2007.

 


What Is Straw Buyer Fraud And Occupancy Fraud?

straw buyer

As The Feds Crack Down On Straw Buyer Fraud And Occupancy Fraud, It’s Important To Know What These Are And How They Are Different

The federal government has been cracking down on straw buyer fraud and the numbers show it. Convictions for straw buyer fraud over the past three years are up nearly 200% compared to previous years. So if you are a real estate investor it is important to know what straw buyer fraud is. It is also important to understand the difference between straw buyer fraud and occupancy fraud.

If you don’t know how a straw deal works, you are not alone. I get dozens of emails a week asking me how they work and if they are legal. Basically, the way it works is a straw buyer/borrower is a person is paid to lend their identity and credit to a transaction for another person.

How Straw Deals Work In Foreclosure Rescue Scams

These types of deals are common in foreclosure rescue scams.

Bob Smith goes into foreclosure and he owes $350,000 on his house worth on a house worth $500,000. Bob’s credit is toast and no one will lend him money except for local loan sharks.

Bob is at the bar one night talking to his buddy Al from the plant. Bob notices Al’s new car out in parking and begins telling Al his dilemma. Al tells Bob he paid cash for his car using the money he makes loaning out his credit and financial information to people. He pitches Bob about how for a fee he could save Bob from being kicked out on the street. Al and Bob had a deal worked out by their third Pabst Blue Ribbon.

Bob will sell the house to Al for $500,000. Al pulls a loan out for $350,000 plus the cost of the closing costs plus his fee of $10,000. This brings Al’s loan amount to $385,000. As fate would have it, Al qualifies for a 3.5% interest rate at an 80% loan-to-value.  So, he and Bob decide to increase the loan amount to $400,000 and split the $15,000. Bob then writes up a bogus seller-held second mortgage for $100,000 cover the difference between the sale price and the loan amount. After the closing, Bob writes a check to Al for $15,000 and Bob pockets $7,500.

The two men write up either a Land Contract or a lease agreement indicating Bob makes payments to Al and Al pays the mortgage payment. Or Bob makes the payments directly to the lender for Al.

Read more at MFI-Miami


Want To Stop Your New York Foreclosure?

New York Foreclosure

New York Foreclosure

You Stop Your New York Foreclosure By Acting Like Michael Corleone Not Joan Crawford

If you want to stop your New York foreclosure you need to let go of all emotion. It’s harsh but it is exactly what I tell my potential clients. I tell them I don’t care if it’s where you raised their kids or if Fluffy the Cat is buried in a shoe box in the backyard. I tell them I don’t care because the bank doesn’t care and the judge doesn’t care. Everyone involved in the foreclosure looks at the foreclosure as nothing more than a business negotiation or a contract dispute. It’s about money and nothing more. So quit acting histrionic and emotional.

“If you ask me, fear, anger — two sides of the same coin. You gotta let go of both.” – Captain Kara Thrace, Battlestar Galactica

When I tell my clients to quit getting emotional. The wife starts getting all Joan Crawford on me with her tears flowing like Niagara Falls. Then the husband begins calling me a heartless asshole.

I explain to them that their histrionics are exactly what the bank wants to see. If they don’t want to lose their home then they need to quit acting like a battered woman in a Lifetime Channel movie.

I usually tell them I’m leaving the conference room. They have 15 minutes to pull themselves together and purge the emotions out of their system. When I come back if they are still in the room then I know they are serious about saving their home.

I explain to them that the only difference between an average homeowner and someone like Donald Trump is the dollar amount of the debt.

Read more at MFI-Miami


HAMP Was Undermined By The Banks

HAMP

HAMP

Lender Disorganization Prevented 70% More Homeowners From Getting HAMP Modifications

When President Barack Obama was inaugurated in 2009 he faced an economic crisis this country had not seen in nearly 80 years.  He launched a multi-billion-dollar effort known as HAMP to stem the flood of home foreclosures.

The White House launched the Home Affordable Modification Program or HAMP. The aim of HAMP was to help families keep their homes. The program offered incentives to banks and loan-servicing companies to modify mortgages of troubled borrowers.

Economists believed that foreclosures were losing proposition for everybody involved. Lenders would face long-term losses from a foreclosed mortgage instead of negotiating more favorable terms with the homeowner. Foreclosures also drag down the value of surrounding properties by creating a cascade of lower values across the housing market.

HAMP offered financial incentives lenders to negotiate loan reductions with at-risk homeowners. The government would pay the mortgage lenders $1,000 for every loan they modified. They would also pay lenders an annual $1,000 for every borrower who stayed current over the next three years.

new study co-authored by Amit Seru at Stanford Graduate School of Business finds that HAMP produced 1 million additional permanent loan modifications. The study also shows HAMP prevented about 600,000 foreclosures that otherwise would have occurred.

Lenders Weren’t Up To The Challenge To Fix The Mess They Created

HAMP saved over 1.6 million homeowners from losing their homes but the program fell short of the Obama Administration’s hopes. The White House had hoped to spur as many as 4 million loan modifications. They also hoped to prevent the millions of foreclosures that resulted from the financial crisis.

Seru’s study concludes the main reason for the shortfall was surprising. Many mortgage-servicing companies weren’t up to the job. A significant share of those companies lacked the organizational capacity to renegotiate large numbers of loans. They also opted not to make internal changes that would have enabled them to take advantage of the program.

Foreclosure defense experts also saw servicers contract the work out to third-party vendors. Vendors who had no experience in lending or were sham outfits.

Read more at MFI-Miami

 


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