WHAT TO DO WHEN YOU CAN’T AFFORD YOUR MORTGAGE
A home mortgage is a secured debt. Secured debt is debt that is held against an asset; if the debt is not paid back by the borrower as agreed upon the asset can be taken by the lender. If you do not pay back your mortgage in the manner specified in the mortgage agreement, your lender can take your house. For this reason, it is essential that you do not fall behind on your mortgage payments.
If you are having trouble making payments or think you may be facing future payments that you cannot afford, cut back on your spending. Do everything in your power to make up the missed or late payments. If you have other debts that suck up your funds before you pay for your mortgage, make your mortgage payments the top priority.
If you fall behind on payments and are unable to catch up then you probably cannot afford the mortgage you currently have and must act quickly.
Contact your lender immediately,
Do not ignore the lender’s letters or calls. Let them know that you are having difficulty and are willing to do whatever is necessary to stay current on payments and keep your house. There are a number of steps the lender may consider taking to remedy the situation.
http://www.banking.state.ny.us/hetpcaym.pdf
If you still find that you are unable to afford your mortgage or feel your lender is not willing to help, there are many legitimate resources available to you. You must act quickly to address the situation—before you lose your home.
Contact the New York State Banking Department Consumer Helpline at
1-877-BANK-NYS
(1-877-226-5697)
If you’re having trouble making mortgage payments, or if you’re in foreclosure or default, the three most important steps to take are:
Contact the Banking Department - The Banking Dept. can direct you to the appropriate legitimate resources for your particular situation. These resources may include approved housing counselors, legal assistance, licensed real estate brokers or other appropriate government agencies.
Avoid scams that specifically target individuals that are in foreclosure or default.
Most foreclosure scams involve predators who know that a home owner is in trouble and trick you into signing away your home by promising to rescue you from foreclosure. They offer to temporarily hold onto the house while you catch up on payments, or they promise to consolidate your debt by offering new loans that turn out to have outrageous fees attached.
HOME EQUITY THEFT SCAMS How they work and how to avoid them
http://www.banking.state.ny.us/hetpfsc.pdf
Actual Foreclosure Rescue Specialist Letter-
DON’T FALL FOR THIS!
http://www.banking.state.ny.us/hetpssa.pdf
Know all of your rights and responsibilities under the law.
As of February 1, 2007, The Home Equity Theft Protection Act covers the sale of certain homes in foreclosure or default. If you are planning to sell a home that is in foreclosure or default, be aware of your rights under this new law, and know what to expect from a legitimate buyer. If your sale is protected by the law, and your buyer fails to fulfill any of these requirements you may be able to void or legally cancel the contract and the sale and you may be able to sue the buyer for recovery of damages. The Banking Department recommends that you not enter into any agreement without first calling them. To learn more about this law see Home Equity Theft Prevention Act Fact Sheet.
Home Equity Theft Protection Act
On February 1, 2007 the Home Equity Theft Protection Act becomes effective in the State of New York.
The act effects Section 595-a of the Banking Law, Section 265-a of the Real Property Law, and adds a new section 1303 to the Real Property Actions and Proceedings Law.
The Act, a response to the alarming rise in home equity theft across New York State, requires written disclosure to homeowners regarding the terms of a title transfer that occurs when a home is in foreclosure, and provides the homeowner with the right to cancel the deal within five days of signing the agreement.
A typical scam unfolds as follows: the predator gets a deed to the property promising that title will be re-conveyed when the distressed homeowner’s credit is restored. The predator then refinances the property and cashes out the homeowners equity, and walks away from the property.
The Act prohibits making false statements with intent to defraud the homeowner and mandates a consumer education notice to be sent to all homeowners in foreclosure warning them about these types of scams. The Act provides for both civil and criminal penalties for violations. Under the Act, mortgage lenders are required to include with their foreclosure notices relevant information for state agencies who can assist the homeowner printed in English and Spanish on colored paper, and in 12 point bold type print. The notice warns the homeowner about being approached by people offering to "save their home." The notice must follow verbatim the statute. Failure to do so could nullify a foreclosure.
Under the Act, a default exists if a homeowner is two months or more behind in mortgage payments.
From a title perspective, RPL 295-a(8)(a) is most disturbing as it makes any transfer that is in material violation of the Act voidable and can be rescinded by the Seller within two years of recording the deed. The Act affects one to four family dwellings. The Act amends paragraphs (e), (f), (g) of Section 595-a of the Banking Law, and adds a new paragraph (h) thereto. It also adds a new section 265-a to the Real Property Law; and adds a new section 1303 to the RPAPL.
copy from judicialtitle.com
HOME EQUITY THEFT PREVENTION ACT Your rights under the law
http://www.banking.state.ny.us/hetpyrul.pdf
FOR MORE INFORMATION AND HELP YOU CAN (AS ALWAYS) CONTACT ME
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