Foreclosure Defense/Homeowner’s Rights

Deutsch & Schneider, LLP has represented not just lenders but also borrowers and homeowners in defending mortgage foreclosure matters since 1957. Our extensive experience in handling thousands of such legal matters over the years allows the firm to zealously safeguard all available rights on behalf of our clients.

In protecting homeowner’s rights in foreclosure, typical defenses include:

  • whether the homeowner was properly served with the foreclosure papers;
  • whether the plaintiff has the right to commence the foreclosure action;
  • whether the plaintiff properly served notices to the homeowner warning of an impending foreclosure – according to the loan terms and according to statute;
  • whether the “90 day notice” to the homeowner was properly served;
  • whether a “default notice” was properly served.

Without these predicate notices, the foreclosing lender may not be legally able to continue the foreclosure action. Next, the homeowner should review whether other defenses are available, such as the lender’s acceptance of partial payments without any notice it was rejecting same, or whether the terms of the mortgage loan were oppressive or whether the loan interest rate or closing terms violated the New York Banking Law. Other defenses can include whether the Truth in Lending Act was violated at the time of the closing because the three-day right to rescind notice was not provided.

The defendant/homeowner in a foreclosure is entitled to a Settlement Conference, where the lender and borrower meet and discuss the availability of a loan modification or other workout of the defaulted loan. During the Settlement Conference period, the foreclosure action does not advance, and the homeowner can explore his options with the lender. These conferences typically require the homeowner to reside at the property being foreclosed, and there must be a mortgage representing a home loan affecting a 1-4 family dwelling, and a loan amount not exceeding the statutory limits. Various state and federal laws may also apply to protect the homeowner from mortgage scams, equity stripping, and predatory lending.

Homeowners who are experiencing difficulty in making their mortgage payments, or who have been served with foreclosure papers, are welcome to visit Deutsch & Schneider, LLP for a consultation, in order to find out the status of any existing action, or become more familiar with the process before the Courts, or to find out what options exist in addressing the lender’s action and defending their rights and home under the law.