As homeowners, we like to think that our mortgage lenders have our best interests in mind. After all, without lenders homeownership would be nearly impossible. But the truth is that lenders are not always landlords who care. Lenders are often large national companies focused on collecting principal and interest. These companies are run by everyday people, and people are not always trustworthy. Whether they are covering up their own mistakes or succumbing to pressure from their management, people cut corners. Foreclosure, however, must be done strictly according to the laws.
If you are experiencing foreclosure proceedings in New York, you must ensure that your lender is playing by the rules. An experienced foreclosure attorney from Moshes Law, P.C. will make sure that your lender is providing you the legal rights you are entitled to.
Foreclosure often occurs during difficult times for homeowners, potentially even during bankruptcy, and banks know this. Because of this, homeowners often feel defeated, and may not have the resilience or stamina to fight back. Similarly, the homeowner may simply believe that the bank has done everything right and that fighting back is futile. The truth, however, is that wrongful foreclosures are more common than many realize. While lenders rarely begin wrongful foreclosures intentionally, the laws governing foreclosures and lending are so complex, slip ups are common.
Lender wrongdoing is a general term to describe any wrongful activity by a mortgage lender. Oftentimes, these activities may seem proper to the average homeowner. Wrongdoing by lenders and their employees can happen in a number of ways, including:
Lenders are required to act in good faith during the lending and foreclosure processes. Bad faith is typically a “catch-all” claim that can encompass a number of improper acts. The difference between bad faith and wrongdoing is slight. An example of bad faith would be a lender failing to tell a homeowner about a default protection program. An example of wrongdoing, on the other hand, would be the lender telling the homeowner they do not qualify for the program when they really do. A bad faith claim is typically included with wrongful foreclosure claims.
Lenders sometimes make mistakes during the loan origination process. These mistakes will “carry forward” throughout the term of the loan and may possibly lead to a wrongful foreclosure claim. For example, if a bank employee improperly drafts the loan documents and subjects the homeowner to the wrong terms, the foreclosure may be wrongful. Lenders may also be required to disclose certain information to homeowners prior to the loan being finalized, which they may mistakenly omit.
Mortgages are binding contracts. Just like any other contract, they can be modified by a writing and sometimes orally. If you and your lender have modified your mortgage agreement, the lender must comply with the terms of the loan as modified. A foreclosure based on the original terms will be invalid. While it is generally very difficult to modify the terms of a mortgage orally, that is to say without a formal writing, it is possible in certain situations.
As established wrongful foreclosure attorneys,we have been helping New York residents fight against wrongful foreclosures for years. Lenders are often confident and intimidating, sometimes leading homeowners to believe that foreclosure is the only option. Foreclosures, however, are complicated and lenders make mistakes. Homeowners are often unaware that they have a potential wrongful foreclosure claim until they talk to a wrongful foreclosure lawyer. Our process has been designed with years of experience to ensure that your rights are protected. If you are facing foreclosure and believe that you may have a potential wrongful disclosure claim, contact Moshes Law, P.C. today. As the top lawyers for wrongful foreclosure in New York, our process is guaranteed to protect your rights.
We begin our process with a thorough review of your loan documents and communications with your lender. This is to help you understand where you currently are in the foreclosure process and to help us get a complete understanding of your legal situation and any applicable statute of limitations. Afterwards, you will know where you stand in the foreclosure process and what to expect going forward.
The next step is to determine the best response to the foreclosure. There are a number of tactics, from delaying foreclosure while you seek other living accommodations, to fighting the bank with a wrongful foreclosure counter lawsuit. We start with loan origination and ensure that the mortgage you agreed to is the mortgage you signed. We then review the entire foreclosure process, including your discussions with the bank, to identify any potential missteps or wrongdoings by your lender.
While proving wrongful foreclosure can be difficult, we have found that the best approach is to be prepared. Before we take action, we make sure that we thoroughly understand your situation. We present your case to your lenders only once we have put in the time and effort needed to be successful. While suing for wrongful foreclosure is a last resort, our process ensures that we are immediately ready to bring a lawsuit if needed.
New York homeowners experiencing foreclosure proceedings are in a better position than their counterparts in other states. This is because New York has barred non-judicial foreclosures. This means that foreclosure actions must take place in a court and before a judge and the lender must file a formal lawsuit against you to begin the process. This greatly reduces the cost of asserting a wrongful foreclosure claim because it may be simply asserted as a counter lawsuit to the bank’s foreclosure.
If you are going through a foreclosure and are seeking a wrongful foreclosure attorney in Buffalo New York, the Law Offices of Yuriy Moshes can provide you with the guidance and answers you need. The foreclosure process is designed to protect you and your estate, not the bank. Our attorneys are experts in fighting back against lenders who cut corners.
As experienced attorneys for wrongful foreclosure, we know that foreclosures happen in a variety of circumstances. Whether the lender has mistakenly claimed foreclosure or purposefully violated your rights, we commonly utilize a number of legal theories to ensure the best results for our clients. These theories include:
A legal relationship exists between the lender and homeowner. Because of that, the lender owes certain duties to the homeowner, including the duty to act reasonably. If the lender breaches one or more of these duties, they have acted negligently. An example of negligence would be the lender forgetting to include an important agreed-upon term when drafting the mortgage documents. Negligent behavior should be viewed in contrast to purposeful behavior. A negligent lender does not intend to harm the homeowner, but does so by acting unreasonably.
Negligent misrepresentation occurs when the lender makes an incorrect or misleading statement that the lender honestly believes to be true. For example, let’s say a homeowner contacted their lender about issues making future payments. The lender tells the homeowner that they have to be behind on the mortgage in order to qualify for mortgage assistance, honestly believing that to be true. Because of that, the homeowner skips the next payment. As it turns out, the lender was actually wrong and no assistance is available. Now the homeowner is in default due to the lender’s negligent misrepresentation.
Fraud occurs when the lender purposefully lies to the homeowner about the terms of a mortgage. This can occur in a number of ways, such as lying to entice the homeowner to enter into the mortgage, lying to make the homeowner believe they are in default when they are really not, or purposefully threatening or imposing improper fees on the transaction. Fraud may also occur when a lender is extremely aggressive during the foreclosure process and makes false statements to the homeowner, possibly to scare them or speed up the foreclosure process.
A mortgage is a legally binding contract and that runs both ways. These lengthy documents place a number of burdens both on the homeowner and lender. Both parties must comply with the terms of the mortgage or else they are in breach of the contract. For example, if a mortgage requires that the lender engage in settlement negotiations with the homeowner prior to initiating foreclosure, this must occur. Failure to do so will mean the lender is in breach of contract and will potentially prohibit the foreclosure action.
Wrongful foreclosure occurs when a lender initiates a foreclosure without any legal basis to do so. This could be because the lender has committed some other act, including the acts above such as fraud or breach of contract. A wrongful foreclosure also occurs, however, when the lender simply prematurely begins the foreclosure proceedings. The truth is that lenders make mistakes. Whether it be human error or a faulty computer program, homeowners should never blindly trust a lender who claims that a foreclosure is legal.
Moshes Law P.C. has been battling wrongful foreclosures in New York for years. We have helped hundreds of New Yorkers through their real estate troubles, including helping sue HSBC for wrongful foreclosure in New York. Our satisfied clients are happy to share their stories of success with our firm.
Foreclosure is not a battle you want to right alone. We specialize in wrongful foreclosures out of necessity to protect our clients. This is because wrongful foreclosures are more common than many realize. When negotiating with a lender, homeowners need someone on their side ensuring that the lender is playing by the rules. We have years of experience fighting for our clients against improper foreclosure practices. If you are seeking a lawyer for wrongful foreclosure, trust the experts at Moshes Law, P.C. to even the playing field and make sure the banks are playing fairly.
Yes. In New York, the bank must bring a lawsuit against you, through a summons and complaint, to foreclose on your home. This means that wrongful foreclosure is generally brought as a counter lawsuit to the lender’s foreclosure action. If the lender has not yet brought a foreclosure lawsuit, there is no foreclosure and, thus, no wrongful foreclosure to dispute.
While possible, a lawsuit for emotional stress will generally be successful only in the most egregious of situations. This claim is often called negligent or intentional infliction of emotional stress. This means that the lender would have to negligently or intentionally bring a wrongful foreclosure that causes you emotional stress. Such a claim would be highly dependent on the facts and circumstances.
Yes. Lenders owe homeowners certain duties. If a lender breaches these duties and the homeowner suffers damages as a result, the homeowner may prevail on a negligence claim.
Lawyers for wrongful disclosure claims must be both real estate attorneys and litigators. They must understand the real estate foreclosure process and be willing to leave the office and fight for their clients in court.
While the best way to win a foreclosure fight is by hiring an experienced and well prepared attorney, preparation should take place before the foreclosure process begins. Documentation is key. Keep meticulous records including the dates and content of discussions with your lender and keep copies of all relevant documents.
At the Law Office of Yuriy Moshes, we have been serving our clients fighting wrongful foreclosures in and out of court. We have assisted clients in Manhattan, Brooklyn, Queens, the Bronx, and Staten Island fight back against lenders who improperly cut corners and violate the law.
If you have received a foreclosure notice and believe that your lender has been violating your rights, contact the Law Office of Yuriy Moshes today.