NYS and NYC homeowners are temporarily saved from foreclosure and eviction if they sign and return to the Court or servicer a Hardship Declaration. Presently, the date this protection ends is August 31, 2021, which date may be extended again.
But sooner or later this protection to New York homeowners will come to an end, and homeowners will need to rely on litigation to stay in their mortgaged homes. The foreclosure laws are complex and a homeowner in a foreclosure action has a better chance of remaining in the home if he/she retains an attorney with significant foreclosure defense experience.
I want you to understand why this is so, in my opinion.
An experienced attorney can look at the 30-200 or more pages of documents and determine legal issues to assert as defenses or counterclaims, which is more apt to cause delays by the servicer’s attorney and the Court to oppose or resolve. This means that an experienced attorney will probably enable the homeowner to hold off foreclosure for a much longer time than an inexperienced attorney. For this reason, the servicer (who wants to get the property back to a “performing” status as soon as possible), is more apt to give an acceptable loan modification to homeowners represented by experienced foreclosure defense counsel. As to inexperienced counsel, the bank may be more willing to let the court foreclose, sell at auction and evict, which can be expected to take place more quickly.
Please remember that as to most foreclosure defenses, even though they are litigated, the courts will ultimately decide in favor of the bank, rather than to give the property free and clear of the mortgage to the homeowner. If this is so, the homeowner, to remain in the home, needs to obtain an affordable loan modification, because reinstatement of the mortgage (by payment of all unpaid monthly payments plus the servicer’s legal fees and any insurance and taxes paid by the servicer, plus interest) is usually far too costly for most homeowner who are in a foreclosure action.
If you have any questions, you can call me at 917-453-9376 or email me at carlpers2@gmail.com.