Alternatives to Foreclosure in NY
A foreclosure is when a bank or other creditor seeks to collect on a debt by forcing sale of property and applying the proceeds from the sale to the debt. The foreclosure process is complicated and there are a variety of laws that are intended to protect property owners and provide them with the opportunity to contest or seek alternatives to foreclosure. If you are facing foreclosure, then contact a White Plains NY real estate attorney to review your options.
What are some alternatives to foreclosure?
There may be some alternative methods that can be utilized instead of foreclosure. This includes loan modification, bankruptcy, short sales, and deed in lieu of foreclosure.
1) Loan Modification
If you are eligible for a loan modification, you can revise the terms of the loan. This could include a reduction in the interest rate and monthly payments and an extension of the loan term. Loan modifications can be difficult to obtain, so you should consult with a real estate lawyer in White Plains NY who can guide you through the process.
Depending on the extent of your loan and other debts, bankruptcy may be a viable option to keep your home and get a fresh start. Before filing a bankruptcy action, you should consult with an attorney to ensure you understand the risks and benefits involved.
3) Short Sale
In a short sale, the bank agrees to accept a lesser amount to satisfy the loan. The bank would recover the amount for which the property is sold and you would avoid the negative consequences associated with a foreclosure. In a short sale, you may avoid the bank seeking a deficiency judgment for the remaining amount you owe.
4) Deed in lieu of foreclosure
In some cases, the bank will allow you to deed the property to them in exchange for a release from the mortgage obligation. This allows you to avoid the foreclosure process and could prevent negative effects on your credit.
Attorney Nicole Muscente and the team at Muscente Law can assist you with your foreclosure questions. Contact us to schedule a consultation.