Homeowner Relief from Foreclosures

Part of a local economy should be to help out friends and neighbors caught up in a foreclosure proceeding threatening to drive the homeowner and family out of their home. There are various things that can be to help many of the homeowners caught up in the foreclosure mess. As Attorney General of New York State I would be in a position to provide greater help than I am now providing as a lawyer who defends against foreclosures. I have learned a lot about foreclosures and have many insights into the problem, many of which I have reduced to 10-minute videos. See http://carlperson.com/videolist.php

Here are some ways in which help can be provided:

1. Provide counseling so that the homeowner understands the options available to him/her; most homeowners allow foreclosure to take place without fighting back, and this is a mistake for most affected homeowners. By putting in a defense, you can increase your chances of obtaining a workable modification agreement;
2. By defending a foreclosure, you can buy time to try to get a higher price for your home, without having to sell the home at a distress sale (public auction on courthouse steps)
3. Various defenses may exist which the typical homeowner may not know about, such as the failure of the lender to have possession of the original note and/or mortgage; sale by by lender of the principal amount of the loan to investors, so that the lender cannot modify the principal amount of the loan, which means that there may be a defense of failure to include all parties in interest; the bank is not the real party in interest if it can't settle the action by reducing the principal amount of the loan; the bank violated the securities laws, the Truth in Lending Act, The Real Estate Settlement Procedures Act, and/or various New York laws; the bank knowingly accepted false appraisals of the property; the bank knowingly accepted false financial information about the borrower
4. By defending a foreclosure, you might be able to arrange a short sale and avoid a deficiency judgment
5. Bankruptcy counseling for the homeowner to make sure that any available bankruptcy option is considered
6. Arranging for a reverse mortgage which, if there is sufficient equity in the property, would enable the homeowner to live in the property without paying any mortgage for the rest of his/their life
7. in NYS, a homeowner can remain in possession of his mortgaged property for about 18 to 24 months or longer after a foreclosure action has been commenced, depending on many different factors including the aggressiveness of the opposing attorneys (I call this "the hidden equity" of the homeowner even though the property is worth less than the amount owed on the mortgage

The homeowner's local community should be able to help homeowners faced with foreclosure through counseling and perhaps economic assistance, which might enable the homeowner to qualify for a modification agreement.

Carl E. Person
Candidate for NYS Attorney General - 2010