Did you know that if homeowners are struggling with their mortgage and facing foreclosure, there are professional and FREE services available from local attorneys to help them understand the foreclosure process?
The possibility of losing a home can be incredibly frightening, and at times overwhelming. The legal foreclosure process is a game with its own set of rules and regulations. If a homeowner doesn’t know the rules of the game, it is much less likely she will keep her home in the end. But there is help. Empire Justice Center offers two free legal clinics every month for anyone who wants to better understand the foreclosure process. The clinics are developed to teach homeowners the rules and to enable them to take some control over a very stressful and confusing process.
Under New York State law, most homeowners in foreclosure are entitled to a “Settlement Conference.” This will occur early in the foreclosure process (once a homeowner has been served with a Summons and Complaint), and will involve the homeowner and an attorney for the bank appearing before a judge or judge’s law clerk. The goal of the Settlement Conference is simple: to attempt to come to some alternative to foreclosure.
The Settlement Conference is a relatively new process, having been created by the New York State Assembly three years ago. It was created at the urging of housing counselors and legal advocates around the State, including Empire Justice, who saw that homeowners were not being treated fairly by their banks when they fell behind on their mortgages. Paperwork was getting “lost,” questions were not being answered, and homeowners were growing increasingly frustrated. The Settlement Conference is there to protect the homeowner and ensure that someone is watching out to make sure the banks are doing what they are required to do under New York and federal law.
There are several alternatives to foreclosure that may be possible for homeowners: entering some form of a loan modification (which would allow the owner to keep her home and have a revised mortgage payment), agreeing to a repayment plan (which would allow the owner to keep her home by paying back all missed payments to the Bank over a short period of time), or entering a “short sale” or “deed in lieu of foreclosure” (which would NOT allow the owner to keep her home, but would limit the negative consequences to her credit).
We understand that it can be incredibly frightening for homeowners to receive the letter telling them have to attend the Settlement Conference. And that makes sense – most of us try to avoid the courthouse if we can! In this case, however, attending a Settlement Conference represents the best chance a homeowner has to save her home. So if a homeowner wants to save her home (or even to just limit the impact of losing her home), it is vital that every homeowner attend their Settlement Conference.