While there is a noticeable spike in housing prices in Long Island (which can be construed as showing signs of life for the ailing housing industry of the region), foreclosure cases continue to pile up. In fact, as much as 13,000 mortgage suits have been filed in 2013 alone, keeping, albeit humorously, careers of the typical Long island foreclosure lawyer afloat.
These suits constitute the first step availed by lenders in getting back the money loaned.
Basics of Mortgage
Everything starts with the dream of living in the Big Apple. Part of the dream is acquiring a house where a person can do whatever he wants, whenever he wants. For most people, a house in New York represents freedom or the fruit of a lifetime of labor. For some, it is about a fresh start. Whichever view they may have, the dream begins with purchasing a New York property.
With the increasing prices of real estate properties in the state of New York, the average Long Islander can no longer pay for a house in full. Fortunately, there are options available for him. One of which is getting a housing loan from a trusted banking institution. After submitting pertinent documents, the bank will assess his credit standing including his income, payables, and how consistent he is in fulfilling his financial obligations. These will be their basis in determining if he is a good creditor.
Once the bank approves the loan, they will ask for a security tied to his property. This security is called a mortgage. Mortgage is a legal mechanism in place to protect the interests of the lender.
In their bid to remain competitive in the New York banking industry, several banks, including the so-called “Long Island giants”, relaxed their credit assessment procedures leading to riskier investments which also meant higher interest rates. In other words, even those who has less favorable credit ratings were granted loans by some banks. This trend has resulted to millions of Americans defaulting in their housing loans, such as in the case of the 2008 Housing bubble.
One of the legal remedies available for banking institutions to recoup their investments is to file for a foreclosure suit in a judicial court. Foreclosure is a legal procedure that allows the lender to force a sale of the mortgaged asset that was used as a loan collateral. The proceeds of the sale will be used to recover the principal debt, the accrued interests and the legal fees (of a Long island foreclosure lawyer) incurred by the mortgage holder.
Assessing the Options
Under the New York state law, administering a notice of foreclosure to the borrower is not required before beginning the foreclosure procedure. It all starts with a suit filed against the borrower requiring him to appear before the court. Legal representation is crucial to avoid being bullied by the representatives of the lending institution. Getting a Long island foreclosure lawyer should be the priority option for those who wants to retain the property.
Failure to appear in court can mean forfeiture of a person’s claim to the mortgaged property. The court can then rule in favor of the lending institution by giving the foreclosure sale a green light. The presence of a Long island foreclosure lawyer on your side can help shake things up a bit. A lawyer can prepare and submit documents that will help turn the tides to the borrower’s favor. Foreclosure cases in New York could take as long as a year or two. During this time, the borrower can still stay in his property while he buys himself some time to find a way to fulfill his obligation to the lending institution.
Also, a Long island foreclosure lawyer can work out a deal with the lending institution, particularly for flexible payment terms more appropriate for the borrower.