Legal Question in Credit and Debt Law in New York

Foreclosure Rights

To whom it may concern: I am writing today on behalf of my mom who approaching 60 y.o in 2 months, has a mortgage of $150K and is 3 months behind on her mortgage payments and in the process of being served Foreclosure papers. She is currently interviewing Real Estates for the purpose of putting her home on the market to be sold since it is too overburdening for her at this point. She was told by the process service that once she is served that the interest stops accruing. Is this true? Can you give me any suggestions as to what she should do? Some options are 1- Mortgage bail out( which she has no knowledge about), 2- refinance and build what is in arrears back into the mortagage with her current bank, or 3 declare bankruptcy? In this situation, what happens to her home? I don't want to see her lose her home of 35 years.

She is unsure and scared. Can you please advise some helpful suggestions?Thank you.


Asked on 10/01/03, 2:18 pm

4 Answers from Attorneys
Guy Lewit Guy Mitchell Lewit, Esq.

Re: Foreclosure Rights

I would suggest that your mom visit a reputable REAL ESTATE attorney for some in person advise. The "quick sale" option provided by my colleagues ignores your concern that she will lose her home of 35 years and will obviously also cost her thousands in lost revenue if the house is sold at a loss...(she still has to pay the debt on the underlying mortgage!! A good lawyer will help her work out the debt with the bank. INTEREST CONTINUES TO ACCRUE UNTIL THE DEBT IS FULLY PAID...

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Answered on 10/02/03, 12:33 pm
David Slater David P. Slater, Esq.

Re: Foreclosure Rights

Interest will stop on payment. The process server is incorrect.

Her best alternatives are to sell the house before the date of the foreclosure sale or refinance. With her poor credit record refinancing may be difficult.

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Answered on 10/01/03, 2:55 pm
Neil Colmenares The Law Office of Neil E. Colmenares, P.C.

Re: Foreclosure Rights

10/1/03

There are many things that your mom may be able to do. However, I need much more information from her regarding her situation. Please call my office at 718-888-3108 to schedule a consultation.

Very truly yours,

Neil E. Colmenares, Esq.

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Answered on 10/01/03, 3:49 pm
Andrew Nitzberg Andrew Nitzberg & Associates

Re: Foreclosure Rights

This is a difficult situation. But you do have options. Bankruptcy is one such option. A quick sale is another (my wife and I are looking for a home - we might be interested in making an offer). BUT THERE IS ANOTHER OPTION THAT, AT YOUR MOTHER'S AGE, MIGHT BE WORTHWHILE: A REVERSE MORTGAGE.

You can also be pro-active and work with the bank to avoid foreclosure (they do not want to foreclose - they find foreclosure costly and time-consuming. They prefer to just collect the mortgage payments). They will work with you and 3 months is not so very far behind. Most banks have a "work-out department " for this very purpose.

You have options - be pro-active.

You are welcome to a consultation for no fee at my offices at 42 West 44th Street, NY,NY. Please call for an appointment first. (646)591-5786 or (718) 729-2029

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Answered on 10/01/03, 5:37 pm


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