One of the worst problems a Long Island property owner could have is an ignorance of his rights. He might think that because he does not have the means to pay off the loan he made for his house, he has no choice but to give it up and hand it over to his creditors. He wouldn’t even bother hiring a defense attorney and attempt to keep his claim over his property. Because of that, he ends up losing his home, and possibly other valuable things along with it.
An important component of a proper foreclosure defense is the homeowner’s knowledge of his human rights and his assertion of them. A good defense lawyer will explain these rights to his client in detail, and together they will come up with a game plan that will lead to the best possible result, depending on the gravity of the complaint against the client.
One of these rights includes security via several consumer protection laws, such as the Truth in Lending Act and the Real Estate Settlement Procedures Act. Banks and other lending institutions should adhere to these rules under all instances. Failure to abide with these regulations could cause the prosecutor to lose the case, and the defendant to be free of his obligations to his creditors.
Another right that an expert lawyer to the Long Island foreclosure defense could look into is the right of his client against mortgage fraud. This happens when a lending company promises to refinance a homeowner’s loan after an agreed upon period, and then refuse to honor this agreement. Because the company chooses not to lend additional money to the homeowner, the latter becomes unable to finish paying for his property. The defense lawyer could use this event as a counterargument against prosecutor, even reversing the situation and accusing the lending company of deceiving his client to enter into a fake agreement with them.
In Long Island, foreclosure defense also involves the possibility of filing for bankruptcy, whether a Chapter 7 or Chapter 13. A Chapter 13 bankruptcy would allow the home owner to reinstate his mortgage over a period of five years, more or less, while a Chapter 7 requires a shorter period of time to pay back the arrearages. Declaring bankruptcy would cause the homeowner’s credit score to go down, but it is an option that is open to mortgage owners. Most creditors are even open to decreasing the negative credit score to seven years (in comparison to the original ten-year period) if their requirements are met by the debt owner.
One other right a homeowner should be aware of is the right against fraudulent and misleading papers. These may include sloppily written and vague documents, with content designed to confuse the home owner. Some lending companies even go to the extent of falsifying their papers, or declare that the original copies have been lost, leaving no proof to what the original agreement entails.
An experienced Long Island foreclosure defense lawyers would do well to point out when instances of fraud are evident in his client’s contracts, and give supporting evidence that would prove that the lending company produced fabricated or incomplete documents that did not list down all the provisions that it had with the home owner.
Due process ensures that a citizen’s rights will be respected, but if the citizen does not know what these are, it would not mean a thing. A Long Island homeowner who is in danger or losing his house over foreclosure should be aware of his rights and, if unsure, should consult with a lawyer on the best way to exercise them.