A previous post on this blog discussed how the foreclosure process works in this state. Although foreclosure is a court process in New York, many Rockland County residents whose homes are in danger of being foreclosed may think that there is little that can be done to slow or stop the process assuming that they indeed owe the bank money. Moreover, some might question why they would sink money into legal fees when they are already in financial trouble and behind on their house payments.
An attorney can be helpful in a foreclosure action in several different ways. For one, not every foreclosure is “routine.”In some cases, a bank may be trying to foreclose on a lien against the property but the moneyis not owed by the person who lives in the house. A bank may also initiate foreclosure if it suspects payments will not be made in the future, even if a home owner or commercial business owner is current on payments to that point.These sorts of issues often require litigation to resolve.
Moreover, even routine foreclosures are court proceedings and, as such, require the bank carefully observe all statutes and laws and, of equal importance, present enough evidence to prove the bank’s case. As streamlined as big banks can be, mistakes are made in this process, and a borrower who has fallen behind can capitalize on these mistakes.
Finally, an attorney may be of assistance in negotiating with the bank for a reasonable plan under which a debtor can avoid foreclosure. While this is not always an option, some banks, especially local ones, may be eager to work out a compromise, as the bank would rather have loan payments than a piece of property it has to sell.Negotiating is often helped if the attorney can make a credible threat of filing a Chapter 7 or Chapter 13 bankruptcy on the debtor’s behalf, a step which will at least delay the foreclosure and, at most, force the bank to take a payment plan of some sort.
The professionals at our law office help New Yorkers going through foreclosure.Please feel free to explore the information on our foreclosure webpage if you are interested in finding out how we might be able to help you protect your home.