Tuesday, February 20, 2018

FORECLOSURE DEFENSE

Dealing with foreclosure can be difficult, stressful, and scary.  

Residential foreclosure is a two-track process.  On the one side, there’s litigation, which can lead to the involuntary sale of your home at auction. On the other side, banks are required by federal law (RESPA, Regulation X, and others) to have modification programs and other measures in place to help you keep your home if you are able. 

Commercial foreclosure is somewhat different.  Unlike residential, there are no public policy considerations in-play to help struggling families.  A commercial loan is a business transaction, governed by traditional contract principals. If you borrow money, you pay it back.  That is not to say that commercial foreclosure are never defensible, because they can be.  Moreover, an appropriate  business-minded approach can lead to resolutions that minimize losses (or, in some situations, maximize gains), even in difficult situations.

Whatever you do, be careful to avoid foreclosure scams.  All too often, I hear of people being taken advantage of when they’re facing foreclosure.  I see it frequently in residential cases, and sometimes in the commercial context as well.  If you hire an attorney, make sure you understand what services they're providing, and how you are being charged for those services. If you choose not to hire an attorney, work with your lender, and, on the residential end, ask a government agency or legitimate non-profit for advice and help completing the borrower’s assistance form.  (The Long Island Housing Partnership has programs throughout Long Island; or you may  want to check with Nassau County’s Office of Housing and Community Development, or Suffolk County’s Department of Economic Development).