Helping Homeowners in Foreclosure
The United States has been facing a foreclosure crisis since 2008-2009 and is far from subsiding. In judicial states, such as New York, it takes years for banks to foreclose due to homeowner protection laws and it being a lien theory state. This means that the mortgage or deed of trust creates a lien on the property, but the lender does not hold legal title to the property. Therefore, the lien holder (mortgage company) must go through the foreclosure process, place a Lis Pendens (pending litigation) on the property, and carry through the foreclosure from start to finish, much like a lawsuit. The borrower all the while still retains legal title and the lender’s interest is secured by the lien on the property, also known as the mortgage. The lender can only foreclose on the property if the borrower defaults on the loan, but the borrower still retains the rights to redeem the property by paying off the loan. This is why the lenders must offer loss mitigation to their borrowers to allow them to become current on their mortgage by reinstatement, loan modification, a short sale, or a deed in lieu.
Throughout life, times arise when the question of “should I keep or sell my house” arises. Life changes such as a death in the family, job loss, divorce, illness, or other distressing situations, can make it increasingly difficult to maintain a property and the mortgage. With the rising costs of living expenses, it has become more difficult every year for the American family to maintain a comfortable lifestyle. Many homeowners that fall behind on their mortgage end up “under water” and owe more on the house than what it is worth. In some cases, homeowners who have filed for bankruptcy to discharge their debt, find that they are still on the deed as the recorded current owner of the property, thinking they no longer own it and have already walked away. The property sits vacant, and turns into a zombie home, and they are still liable as the current owner.
You may still have options to keep or sell your house, even if you are behind on payments, have no equity, owe more than your house is worth, or have filed bankruptcy. We can help clear additional liens or judgments attached to your property, even if you have inherited a house with a reverse mortgage. You may have been told by your bankruptcy or foreclosure attorney that you no longer must worry about the house, but you are still the owner of the property. We can guide you through the options for selling a property that is in poor condition, uninhabitable, destroyed by fire or flood, or considered a “zombie home.” No matter what you owe on the mortgage, what the condition of the property is, or the value of the additional liens or judgments on title, we will let you know if you are able to either keep or sell the property.