Help For The Property Owner After The Mortgage Default – Steps To Take Before You Meet With A Lawyer

If you have defaulted on your mortgage, time is not your friend. Each month that passes puts you deeper in the hole, with accumulating arrears and late charges. Meanwhile, the bank’s lawyers are running up a bill that will be added to your principal balance. You need to stop this soon to give yourself the best chance of success. Here are some immediate steps to take:

1. Call a lawyer with experience in handling foreclosures. You may want to call a few. They are not all the same. You’ll see that some will take the time to talk to you in plain English. Others won’t. Some may have experience in representing mortgage companies and lenders, some with bankruptcy trustees, and some with property owners. Some, like me, may have represented all three over the years. Reasonable fees are important of course, but experience matters the most when you are hiring your lawyer to help you save your family home or investment property. Avoid foreclosure rescue centers at all costs. Most are out of state companies run by non-lawyers who are not allowed or qualified to give a New York property owner legal advice or help. Many of my clients have been scammed out of money by these kind of places.

2. Once you have selected your lawyer, review your case by phone. I offer free telephone consultations. There is a charge for initial office visits to review things in more detail (because they take much longer than a phone call, and are of more benefit to the client). Usually, the cost of the visit is given as a credit towards any additional services that are needed.

If, after your initial call it appears that your lawyer can help, schedule an office consult.

3. Before your office consult, gather all relevant documents to bring with you. If you cannot find them, don’t worry. Your lawyer usually can still help anyway, but if you have these items, bring them: Deed, Mortgages and Notes, All Court Papers, including the summons and complaint, all letters to and from your lender and it’s attorneys, and payment records. If you had an appraisal done in the last year or two, bring a copy. If you are considering Chapter 13 bankruptcy, you should also bring proof of your last 6 months income (for you and your spouse), your last 2 tax returns, and most recent bills (credit cards, cable, cell, telephone, medical, charge cards, gas cards, taxes, heat, gas, electric, etc.). All of this will help your lawyer more effectively determine if you can refinance, try a forebearance agreement or loan modification, file bankruptcy, litigate, offer a deed in lieu, sell, or try something else to resolve the mortgage default. Tell your lawyer everything. It’s all confidential under the attorney-client privilege. The more information you convey, the better your ultimate decision will be. Keep it realistic. There is no point in making an uninformed decision that will just set you up to fail.

You have it in your power to take affirmative steps to recover, even before you actually meet your lawyer. Doing these things alone will make you feel better. Get organized. At least you will know that you have everything you need to begin analyzing your options and to face some difficult decisions. Then you can sit down with experienced counsel and review it all. Every journey begins with the first step.