Rockland County Foreclosure Mediation Lawyer

If you have recently been served with foreclosure papers, or you believe your lender may begin foreclosure proceedings in the near future, you are most likely wondering whether there is anything you can do to keep your home. Fortunately, in many cases, there is. New York law gives many homeowners the opportunity to participate in foreclosure mediation before a foreclosure case moves further through the court system. While foreclosure mediation does not guarantee that you will be able to keep your home, it does provide an opportunity to sit down with your lender, discuss your financial situation, and determine whether there is a solution that works for both parties. We at the Law Office of Peter A. Hurwitz, PLLC have extensive experience representing clients in foreclosure mediation, and if you need a skilled Rockland County foreclosure defense lawyer you can depend on, look no further than our firm. Contact us today to learn more about foreclosure mediation and how we can help you through the process.

What Is Foreclosure Mediation?

Simply put, foreclosure mediation is a court-supervised process that gives homeowners and mortgage lenders the opportunity to discuss possible alternatives to foreclosure before the case continues through litigation. Rather than immediately allowing the foreclosure action to move forward, the court encourages both sides to negotiate in good faith to determine whether a resolution can be reached.

Generally speaking, the purpose of foreclosure mediation is to determine whether there is a way for the homeowner to avoid foreclosure while also addressing the lender’s concerns, and during the process, both parties will typically exchange financial information, review the homeowner’s current financial circumstances, and discuss available loss mitigation options that may help resolve the matter.

It is important to understand that mediation is not a trial, nor is it a hearing where a judge decides who is right or wrong. Instead, it is an opportunity for productive discussions outside of the traditional litigation process. In many cases, these discussions allow homeowners to explore options that may not have otherwise been available.

Is Foreclosure Mediation Mandatory in New York?

In many cases, the answer is yes.

New York law requires mandatory settlement conferences in many residential foreclosure actions involving one-to-four family owner-occupied homes that serve as the borrower’s primary residence. The purpose of these conferences is to give homeowners a chance to negotiate with their lender before foreclosure litigation progresses any further.

During these conferences, both the homeowner and the lender are required to negotiate in good faith, meaning that the lender cannot simply appear at the conference without genuinely considering available foreclosure alternatives, and it also means that homeowners should be prepared to provide complete financial documentation and actively participate in the process.

That being said, it is important to understand that mandatory mediation does not mean that a loan modification or another settlement will automatically be approved. Even so, many homeowners are able to explore options that could reduce their monthly payments, restructure their loans, or otherwise resolve the foreclosure before it reaches a final judgment.

How Does the New York Foreclosure Mediation Process Work?

The mediation process generally follows the same basic steps, which are as follows:

1. The foreclosure lawsuit is filed. Once the lender begins a foreclosure action, homeowners who qualify under New York law are generally scheduled for a mandatory settlement conference.
2. The court schedules the settlement conference. Both the homeowner and representatives for the lender are expected to appear and participate in negotiations.
3. Financial documents are gathered and exchanged. Homeowners will often need to provide tax returns, pay stubs, bank statements, hardship letters, mortgage information, monthly expense information, and various other financial records so the lender can fully evaluate the situation.
4. Negotiations begin. During the conference, the lender reviews the homeowner’s financial information while discussing possible foreclosure alternatives.
5. Additional conferences may be scheduled. It is not uncommon for multiple conferences to be necessary, particularly if additional documentation is requested or the lender needs more time to review the homeowner’s application.
6. The matter is resolved or litigation continues. If the parties reach an agreement, the foreclosure may be resolved without further litigation. If they cannot reach an agreement, the foreclosure case will generally continue through the court process.

What Types of Resolutions Can Be Reached During Foreclosure Mediation?

Fortunately, depending on your financial circumstances and your lender’s willingness to negotiate, several different resolutions may be available. Some of the most common are as follows:

• Loan modification that changes the interest rate, repayment period, monthly payment, or other loan terms.
• Repayment plans that allow missed mortgage payments to be repaid over time.
• Forbearance agreements that temporarily reduce or suspend mortgage payments while the homeowner experiences financial hardship.
• Loan reinstatement after the homeowner pays the overdue balance and brings the mortgage current.
• Short sales that allow the property to be sold for less than the remaining mortgage balance with the lender’s approval.
• Deeds in lieu of foreclosure in which ownership of the property is voluntarily transferred to the lender instead of proceeding through foreclosure.
• Other negotiated resolutions that address the homeowner’s unique financial circumstances and satisfy the lender’s requirements.

Contact a Foreclosure Mediation Lawyer in Rockland County, NY Today

The bottom line is that is you are facing foreclosure, you should strongly consider speaking with an experienced foreclosure mediation lawyer as soon as possible. At the Law Office of Peter A. Hurwitz, PLLC, we have helped clients facing foreclosure in Rockland, Westchester, and Orange Counties, as well as in New York City, for decades, and we’re here to help you too. We know how important it is for you to remain in your home. We’re here to do everything in our power to ensure that happens. Contact us today so we can begin building a comprehensive strategy on your behalf.