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“ Craig D. Robins, Esq., has been a practicing Long Island bankruptcy attorney for over twenty-four years ”
Archive for February, 2013
Written by Craig D. Robins, Esq.Faced with a wave of judicial sentiment against them, banks have begun seeking more creative ways to resolve delinquent mortgages than rushing to foreclose against the homeowner, which for quite some time was their remedy of choice.
Since a great number of troubled mortgages contain toxic documents that were improperly prepared or filed, judges here in New York, especially in Queens, Nassau and Suffolk counties, have gotten fed up with many of the mortgage banks and the attorneys who represent them.
Consequently, the mortgage lenders have been forced to consider other options which just years ago they refused to entertain.
These Creative Options to Foreclosure on Long Island Include:
Deed in lieu of foreclosure, which is when the homeowner surrenders the property back to the lender in good condition in exchange for the lender waiving any further recourse on the mortgage.
Short Sale, which is when the homeowner sells the property for less than what is owed on the mortgage and the bank agrees to accept the reduced amount as a full satisfaction of the mortgage.
Selling Delinquent Loans to Investors. Sometimes banks just want to get rid of the headache of having bad mortgage paper so that they can collect some cash and ascertain a specific loss for their books. Investors who purchase these loans. Sometimes this can help the homeowner as the investor who now owns the mortgage having purchased it at a deep discount can afford to offer the homeowner more drastic modifications.
Utilizing Billion Dollar Settlements. As I recently wrote, many of the major mortgage banks have entered into various settlements with the government, (see What Does the $8.5 Billion Mortgage Settlement Mean For You), in which they must provide certain financial relief to homeowners. This can include reducing principal or even writing off entire second mortgages.
Our Nassau and Suffolk County foreclosure defense office is currently helping many Queens, Suffolk and Nassau county homeowners resolve their mortgage arrears by working with mortgage lenders with some of these options. Of course, there is also the possibility of mortgage modification.
Written by Craig D. Robins, Esq.
After a wave of foreclosure proceedings hit Long Island during the past several years, a many members of the Suffolk County Bar Association took advantage of learning about advanced foreclosure defense issues by attending a two-part Suffolk Academy of Law seminar entitled “Behind the Curtain: Advanced Standing Issues in Securitized Mortgage Foreclosure.”
The seminars were held on November 19, 2012 and January 14, 2013. At the first session, attendees learned about the intricacies behind mortgage transfers and assignments. The second session highlighted various defenses attorneys can assert on behalf of their homeowner-clients.
Pictured above during the January session (from left to right) are Hon. Peter Mayer, Hon. C. Randall Hinrichs, Charles Wallshein, Hon. Jeffrey A. Spinner and Richard L. Stern, who moderated both sessions. Hon. Dana Winslow and Hon Arthur Schack were additional panelists for the November session.
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About the Author. Long Island Bankruptcy Attorney Craig D. Robins, Esq., is a regular columnist for the Suffolk Lawyer, the official publication of the Suffolk County Bar Association in New York. This article appeared in the March 2013 issue of the Suffolk Lawyer. Mr. Robins is a bankruptcy lawyer who has represented thousands of consumer and business clients during the past twenty years. He has offices in Mastic, Patchogue, Commack, West Babylon, Coram, Woodbury and Valley Stream. Call (516) 496-0800 . For information about filing bankruptcy on Long Island, please visit his Bankruptcy web site: http://www.BankruptcyCanHelp.com.