Mandatory Modification Mediation as a New York Foreclosure Defense Action
Federal, state, and local agencies have initiated intervention programs to help resolve the foreclosure crisis around the country. As one of these measures, the state of New York has made the mediation program between lenders and borrowers a mandatory process. Under New York law, this legal mandate ensures that borrowers and lenders meet to negotiate a settlement and might even make foreclosure unnecessary. In a settlement conference, the two parties may make new arrangements such as modify an existing loan’s interest rates, length, type, waive fees, or some other mutually agreed upon alternative.
The New York Mandatory Modification Mediation Law
Under this law, when a residential foreclosure has been filed with the courts, a settlement conference must be scheduled within 60 days of the proof of service of the complaint (filed by the lender.) The court will suspend the foreclosure process until the conference between the homeowner and the lender takes place. All parties must attend. The lender or the lender’s attorney must attend with legal authority to handle the matter, either in person, by video conference, or by phone conference. Having your own attorney who can represent your best interests at such a meeting is advised. A Long Island foreclosure defense attorney from the Law Firm of R. David Marquez, P.C. can help you by working on your behalf and get the lender to agree to a loan modification. This can be accomplished through the submission of information to the courts, making counterclaims, and through other legal strategies. All of these legal actions will be done to mediate a workable solution to your foreclosure case. The purpose of the meeting is to try and create an acceptable resolution between you and the lender. The legal team at the firm has participated in many settlement conference negotiations and knows how to prepare and conduct these actions. The law concerning mandatory modification mediation applies to homeowners of all types.
During the settlement conference, your financial situation will be reviewed and evaluated. This evaluation will include taking a look at your income, expenses and your current assets. A settlement will be based on your ability to make your current loans or be adjusted to a new loan payment arrangement. Other factors involved will include the type of mortgage you have, how overdue your payments are, and other relevant facts. Solutions mediated may include forbearance agreements involving temporary reductions or suspensions of required payments, repayment plans, short sales, or modifications of loan terms.
Contact a Long Island foreclosure defense lawyer at the firm for skilled legal assistance with a mandatory modification mediation session with your lender today.
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