Foreclosure Defense Lawyer in New Hyde Park

How to Avoid Foreclosure 

Several ways to avoid foreclosure in New York are available. The best option for you will depend on your unique circumstances. At John Lehr, P.C., we can help you explore your options and determine your best course of action.

Some of the most common ways to avoid foreclosure in New York include:

• Reinstatement: This involves paying the entire amount owed, including any late fees and penalties, to bring the mortgage current. This is the best option if you can pay the whole amount owed.
• Forbearance: This involves your lender temporarily reducing or suspending your mortgage payments. This is a good option if you are experiencing temporary financial hardship, such as a job loss or a medical emergency.
• Loan modification: This involves permanently modifying the terms of your mortgage through your lender to make the payments more affordable. This is a good option if you are experiencing a long-term financial hardship, such as a permanent reduction in income.
• Refinancing: This involves replacing your current mortgage with a new one with more favorable terms. This is a good option if you have a good credit score and enough equity in your home to qualify for a new mortgage.
• Selling the property: This involves selling the property to pay off the mortgage. This is a good option if you have enough equity in your home to pay off the mortgage and cover the costs of selling the property.
• Deed in lieu of foreclosure: This involves voluntarily transferring the property to the lender to satisfy the debt. This option is good if you cannot sell the property or refinance the mortgage.
• Bankruptcy: This involves filing for bankruptcy to obtain an automatic stay, which will temporarily stop the foreclosure process. This is a good option if you are facing foreclosure and need more time to explore your options.

Bankruptcy Options for Stopping Foreclosure 

If you are facing foreclosure, you may be able to stop the foreclosure process by filing for bankruptcy. When you file for bankruptcy, an automatic stay goes into effect, prohibiting your creditors from taking any collection actions against you, including foreclosing your home. This means the foreclosure process will temporarily stop, giving you time to devise a plan.

Two main types of bankruptcy can help you stop foreclosure:

Chapter 7 bankruptcy: This is also known as “liquidation” bankruptcy. When you file for Chapter 7 bankruptcy, a bankruptcy trustee is appointed to liquidate your nonexempt assets and use the proceeds to pay off your debts. 

However, most of your assets, including your home, will be exempt, so you will not lose your home. Chapter 7 bankruptcy can help you eliminate unsecured debts, such as credit card and medical debt, so you can use your income to pay your mortgage.

Chapter 13 bankruptcy: This is also known as “reorganization” bankruptcy. When you file for Chapter 13 bankruptcy, you will propose a repayment plan to repay your debts over three to five years. The repayment plan will be based on your income and expenses to make it affordable for you. 

Chapter 13 bankruptcy can help you catch up on your missed mortgage payments and avoid foreclosure. It can also help you eliminate unsecured debts, such as credit card and medical debt, so you can use your income to pay your mortgage.

How Our Foreclosure Defense Attorney Can Help You

Here's how we can help:

• Assessing Your Situation and Determining the Best Strategy: Every foreclosure case is unique, so the first step is to review your case's specifics. We will evaluate your loan documents, mortgage terms, payment history, and the actions taken by your lender to determine the most effective defense options. By understanding the full scope of your situation, we can develop a tailored approach to protect your interests.
• Exploring Loan Modifications: A loan modification can help make your mortgage payments more manageable, potentially allowing you to avoid foreclosure. By working with your lender, we may be able to negotiate changes to your loan terms, like reducing the interest rate, extending the loan term, or even modifying the principal balance. We will guide you through the application process, prepare the necessary documentation, and present your case to improve your chances of approval.
• Representing You in Court: If your lender has already initiated foreclosure proceedings, having our knowledgeable attorney to represent you in court is crucial. We are well-versed in foreclosure law and can advocate for your rights before a judge. We'll ensure that the foreclosure process is being conducted lawfully and will raise any possible defenses, such as improper notice or a lender's failure to follow required procedures. A strong legal defense can buy you more time or even stop the foreclosure entirely if the lender has acted improperly.
• Identifying Violations of Mortgage Servicing Rules: Mortgage servicers must follow strict rules when managing home loans and pursuing foreclosure. You may have grounds to challenge the foreclosure if they violate these rules. We will closely examine the lender's conduct, payment handling, communication, and overall compliance with federal and state regulations. Any violations we uncover can serve as a defense in your case and potentially halt the foreclosure process.
• Exploring Alternatives to Foreclosure: Foreclosure defense doesn't always mean stopping foreclosure at all costs; sometimes, alternatives like short sales or deeds-in-lieu of foreclosure can provide better outcomes for homeowners. We will work with you to explore these options and communicate with your lender to negotiate terms. If an alternative solution is appropriate, we'll help facilitate the process and ensure you understand the implications.
• Helping You Pursue Bankruptcy as a Last Resort: Bankruptcy can be a powerful tool for halting foreclosure and gaining control over your finances. If you're overwhelmed by debt, filing for Chapter 13 bankruptcy may allow you to reorganize your finances and keep your home. Under Chapter 13, you can create a repayment plan to catch up on missed mortgage payments over time. We will assess whether bankruptcy is a viable option for you and, if so, guide you through the filing process to protect your home.
• Offering Compassionate Guidance and Support Throughout the Process: Facing foreclosure can be a stressful and emotionally charged experience. We are here to provide legal guidance and support you and your family through every step of the process. We will keep you informed, answer your questions, and make sure you understand your rights and options.