Creditor Rights and Protection Attorney

Maria R. Cozzini, Esq., represents creditors in foreclosure actions, bankruptcy proceedings, and loss mitigation options, such as loan modifications, forbearance plans, short sales, and deeds-in-lieu of foreclosure.

A mortgage gives certain rights and protections to a secured creditor should the borrower fail to make required payments.  Upon default, the creditor has the right to accelerate the amount due and file a foreclosure action to recover the property. Once a final judgment of foreclosure is entered, the property can be sold at a sheriff's sale and the proceeds paid over to the creditor.  In many cases, a defaulting borrower will seek protection in the bankruptcy court, which provides the borrower with additional time to cure a default or to sell the property. In certain cases, bankruptcy will enable a borrower to remove a lien from the property or reduce the amount of the claim owed to the creditor. 

To minimize loss, when faced with a defaulted mortgage loan, a creditor requires effective legal representation from an attorney experienced with the intricacies of both the state court foreclosure process and bankruptcy practice. An experienced and skilled attorney is required to successfully prosecute a foreclosure action from start to finish, while navigating the intricacies of any potential bankruptcy filing. Maria R. Cozzini, Esq., has extensive experience with all aspects of creditor's rights and protection. Ms. Cozzini will take the steps necessary to fully protect the creditor's interests throughout the foreclosure process and in any bankruptcy proceeding filed by the borrower. 

When advantageous for the creditor, Ms. Cozzini will explore loss mitigation options, including loan modification or forbearance agreements, turning a defaulted loan into a performing obligation. Ms. Cozzini is also experienced with short sales and deeds-in-lieu of foreclosure, where exit strategies provide the best option for the creditor to minimize loss.  

Maria R. Cozzini, Esq. effectively handles all steps in the mortgage foreclosure process, from issuing required pre-action notices and filing of the complaint, through entry of the final judgment and completion of the sheriff sale. If the borrower files for bankruptcy at any stage of the foreclosure proceeding, Ms. Cozzini will provide methodical and skilled legal representation to protect the creditor at every step. Her goal is to protect the creditor's interest and maximize recovery through effective and expedient representation.  

Loss Mitigation May Provide Effective Options.

Foreclosure can be both a time-consuming and expensive process for creditors and borrowers. Often, the creditor can work with the borrower in an effort to find a resolution to a mortgage default, by exploring the reason for the default and whether the hardship has been resolved, and considering the borrower's finances, including income, expenses, and ability to pay. Valuation of the property is also a crucial factor when considering loss mitigation options.  Creative strategies can sometimes turn a defaulted loan into a performing obligation, upon terms favorable to the creditor.  When not possible, exit strategies can also be considered to avoid the cost and delay associated with a foreclosure action. To help clients save both time and money, Maria R. Cozzini, Esq. assists creditors in actions such as these: 

  • Reinstatement  -- The Borrower tenders payment in full to cure the arrears.  The Borrower may be able to take a withdrawal from a retirement account or borrower funds from family or friends.
  • Mortgage modifications — Loans are modified to resolve the mortgage arrears, which may require a reduced interest rate, extended term, or a deferred balance, based upon financial information provided by the borrower.  Defaulted loan will be turned into a performing obligation.
  • Mortgage forbearance plans — Loan payments are paused due to a temporary hardship.
  • Short sales — For borrowers who do not qualify for a loan modification or forbearance plan to resolve arrears, the creditor may approve a short sale, where the net proceeds from selling the property fall short of the amount owed on the debt. The lender avoids the time and expense of foreclosure and can often realize a higher return through a short sale as it would through a sheriff’s auction.  In areas where the housing market may be picking up, this remedy could be a viable option. 
  • Deeds in lieu of foreclosure — A deed in lieu of foreclosure allows a borrower to relinquish interest in a property for the amount of the loan by exchanging the deed for the loan cancellation. There normally cannot be any other liens or judgments against the property for deed in lieu to be a viable option.

The Client's objectives are our first concern.

Maria R. Cozzini, Esq., will consider your business' objectives in determining an appropriate case strategy.  If the situation requires immediate action, Ms, Cozzini will proceed quickly and aggressively.  In another case, a client may prefer a more deliberate approach, where the client's interests are not at immediate risk. Ms. Cozzini provides skilled guidance for her clients through the mortgage default process.

Contact a dedicated creditor rights' attorney

The Law Office of Maria R. Cozzini, LLC represents creditors faced with defaulted  loans, including foreclosure, bankruptcy, and other loss mitigation options, such as loan modification, forbearance plans, short sales, and deeds-in-lieu of foreclosure. To schedule a free initial consultation, please contact Maria R. Cozzini, Esq. at (908) 232-2414 or contact us online.