About Me
“ Craig D. Robins, Esq., has been a practicing Long Island bankruptcy attorney for over twenty-four years ”
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.
