Most Lenders Are Willing to Work With a Borrower Rather Than to Proceed With a Foreclosure

Facing a foreclosure lawsuit can be stressful enough, especially if a homeowner has just lost a job or is having financial difficulties with a personal business. If a homeowner is facing a foreclosure lawsuit in Long Island, New York, then the services of a Long Island foreclosure lawyer will be needed who is experienced in real estate and foreclosures. Foreclosure is a long process and acquiring the services of a lawyer who specializes in foreclosures is the best move a homeowner can make.

Foreclosure proceedings usually begin after two or three payments have been missed. A lender will have a grace period for late payments but will add a fee to the missed payments. After the second or third missed payment, the lender will make some phone calls to remind the borrower of his or her obligation and will not accept partial payments to bring the loan current.

ImageIn Long Island, the foreclosure process is through judicial sale where the lender must file a lawsuit against the delinquent mortgagor in a court of law. A homeowner who has been served a court summons regarding foreclosure must not take this lightly but consult a Long Island foreclosure lawyer to explore all available options.

LawIn Long Island, after the summons has been served, the mortgagor will have thirty days to respond to the lawsuit to avoid foreclosure. A Long Island foreclosure lawyer can advise the mortgagor to file for a motion to extend the proceedings or to file a motion to dismiss the lawsuit. A motion to dismiss is feasible if the mortgagor thinks that some improprieties occurred when the mortgage and promissory note were being processed. If the mortgagor wins the case, then the mortgagor can be declared free of the mortgage pending other encumbrances. These encumbrances may be tied to third-party lenders to whom the mortgagor has applied for other loans. If the computed amount of the auction sale is not able to cover the amount loaned, then the third-party lender can apply the loan to the new property owner.

It is advisable that a Long Island foreclosure lawyer be present to oversee these proceedings in case of deficiency judgments. This may happen if the computed sale of the property does not compensate the lender for the amount of the loan and the borrower can be made to compensate the lender for this loss. The entire difference between the two can be required, although the court may require that only the difference between the fair value of the property and the loan amount be paid.

On the other hand, if a motion to dismiss is not granted, then a request to enlarge time can be filed which can be used to study the case further. The most important action a mortgagor can do to avoid foreclosure is to discuss with the lender what other options are available. It is crucial that the lender know that a borrower wants to work with them in finding ways to work out mortgage payments. No one wants the trouble and hassle of a foreclosure and this is where an experienced Long Island foreclosure lawyer can help a beleaguered homeowner.

Lenders will work with a willing mortgagor especially with a competent lawyer by their side to guide them through the legal jargon. Along with the lawyer, lenders will deal with the case on a personal level, and all extenuating circumstances will be taken into account. A loan workout package can be discussed with the borrower’s lawyer containing information, instructions and forms regarding the ability to make payments.

The lawyer can also ask for temporary suspension of payments as forbearance if the borrower agrees to another option to fulfill the loan amount. Reinstatement usually is the option whereby the outstanding amount is paid in one lump sum. This option is the surest way of preventing foreclosure.