Keep Home Your Own : New York Real Estate Lawyers & Attorneys : Rubin & Licatesi Law Firm : NY Loan Modification, Foreclosure : New Jersey, Long Island

“Someone is listening.” During the past year, we have read much about the First Time Home Buyers tax credit, which provides up to $8,000 to first time-home buyers but is set to expire at the end of November. The Senate now has a bill which, if passed and then send to the House for similar action, could extend this tax credit up to April 30, 2010 and may also be available to repeat buyers at a reduced credit who have owned their homes for at least five years.

Within minutes of this release to news agencies, Realtor groups and other related real estate authorities began to publicize these events. Warning: This widely circulated news is depressingly, not a done deal, but at least we know that someone in Washington is listening.

We are living in the middle of extreme and significant changes in housing, jobs and the fallout from a challenged economy. We thought that someone was listening when the Federal Government classified loan modifications and lender based work outs as its #1 priority. Simply stated, it has not happened. The statistics bear out the overwhelming failure of this initiative to keep homeowners in their homes by loan modifications.

Frustrated by so many failed Federal homeownership programs, we should all be wary of this published Federal tax credit extension until it is passed into law, but we should also be pleased that “someone is listening” in Washington, and knows that our homeownership needs must be addressed to accomplish an economic recovery.

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 "Who would have thunk?" The F-Word in the luxury real estate market. A recent office visit from a new potential client suggests to me that even the "upper classes" now believe in loan modifications & counsel sessions to discuss their homeownership woes and troubles. It is quite common that I receive a call from an upper middle class or a family that some might characterize as the "wealthy" side of the tracks. These homeowners are also suffering defaults in their mortgage payments and have huge losses in this economy.

Is it a "planned default" before the hammer hits or has their market value really fallen to new lows? The fact that these families are now seeking consultations in our law firm says that the decision to allow a significant loss of a credit or FICO score has crossed previously and well defined social, political & economic barriers. Despite the known fact that such defaults may be reported in their credit scores for 7 years, these new clients must increasingly face the anguished issues formerly known only by a far different segment in our neighborhoods.

Not only do these defaults lower their mortgage ratings, but their credit card rates & some employers may also consider the mortgage default. These are no longer academic debates. Homeownership defaults have crossed all lines and reach even into the heart of Manhattan condos overlooking Central Park and Park Avenue.

Consider talking to an attorney, it may allow and permit the consequences of mortgage default in your family to avoid bankruptcy filing and offer valued discussion in these often troubled areas of homeownership.

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Courts now routinely provide special parts & rules for foreclosure actions of residential mortgage loans. Clients are talking to our firm about loan modifications and what happens next, if the lender starts the foreclosure action. Borrowers' confidence and degrees of comfort rise during the modification months only to be assaulted again with a certified mailing or a process server delivering the foreclosure summons and complaint..

Lenders now are looking at recent court rulings no longer allowing the process to go without scrutiny when the homeowner challenges the lender to prove a case. Many homeowners no longer have any idea or clue who has sued them; the plaintiff in the foreclosure lawsuit was not the original lender to the homeowner.

Everyone starts looking for the Note, the loan document which evidences the homeowners' obligation to pay the loan. Simply stated, our Courts are being called upon to enforce loans & foreclosure actions which may not be evidenced by the original, signed loan documents, and some Judges won't permit the process unless the lender produces the Note.

The past several years has shown enormous growth in opportunities to keep families in their homes and avoid foreclosure through loan modification. The follies that families participated in by borrowing monies on their homes with Lenders' exotic products may now be coming to the end of the second act of this play...proving the existence of loan documents may be another incentive for Lenders to continue the growth of loan modifications and avoid foreclosures.

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We have just concluded a successful negotiation of office space for a small Long Island law firm. Lease signed in 3 days of intense back and forth; mostly because everything always waits for last minute, backing one lease offer of "freebies" against another until its last man standing, and who gives up first to get the tenant. Even with it signed, tenant realizes it wants more, and then what to do? We resolve that and then off to court on a foreclosure conference.

Afternoon session in Riverhead; another 50 families lined up to see their fate. We see some daylight in our case so it gets adjourned. Now only 49 families hopeless!! Some approach me to take their case. I decline.....very old superstition--bad luck to pick up cases in courthouses!! Pretty stupid superstition yet it has always held true for me....

Then 70 mile drive to Brooklyn to meet two new clients---one needing a loan mod--2years they haven't paid their mortgage and another family up to their neck in over leveraged investment property!! Good intentions gone bad-- tenants not paying, lost jobs, bad judgments etc. Followed by a client looking to buy an investment.

9pm. Still placating our new tenant who needs further concessions. That's one more wonderful day.

Nobody has a better job than me. 14 hours of helping families & clients.

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