Foreclosure and Loss Mitigation for Borrowers

If your residential or commercial mortgage loan is in default, contact Maria R. Cozzini, Esq., for effective legal representation in foreclosure and loss mitigation options. 

When unexpected circumstances occur that put your home or property at risk of foreclosure, it's important to know that you have options. Many borrowers find themselves in an unfortunate situation where they fall behind on their mortgage payments, often due to a job loss, downturn in the economy, disability, or even a death in the family.  In addition to the stress caused by the hardship, the borrower could also face the potential loss of their property.  For a business, this loss could be devastating.  However, for a family uprooted from foreclosure, the loss of a home could have traumatic and far-reaching implications.  Borrowers make mortgage payments for many years, with the expectation of building equity and wealth for their future, only to be faced with a foreclosure action and the potential loss of their property.

Mortgage defaults are at record high numbers and you are not alone if faced with this unfortunate situation. However, it is important that you act soon and contact an attorney for effective legal representation when faced with a financial hardship or if you are behind on your mortgage payments. Appropriate action can be taken to potentially avoid foreclosure, especially with early intervention, and the possible loss of your property.

Lenders often prefer to work with defaulting borrowers, whether commercial or residential, who are facing financial difficulty, rather than proceeding with a foreclosure action.  The foreclosure process is time consuming and expensive for both the creditor and the borrower.  Early communication is important, at which stage, other loss mitigation options may be considered to avoid foreclosure and potentially, to save the property.

Maria R. Cozzini, Esq., combines innovative ideas with effective strategies to help you keep your property or your home, through a workable solution to resolve the default. Depending upon your lender's willingness to work with you and your financial situation, such options may include a loan modification agreement or a forbearance plan, where payments are paused until the hardship is resolved. When selling is a better way to proceed, Maria R. Cozzini, Esq. will guide you toward the most advantageous situation and exit strategy. 

If the default cannot be resolved through loss mitigation options, Maria R. Cozzini, Esq., is ready to assist with methodical and aggressive legal action, including foreclosure defense.  Bankruptcy options will also be considered, where the borrower will have more time to resolve a default or to sell a property, and in certain situations, a mortgage lien can be removed  or reduced, providing substantial benefit for the borrower.  

You can rely on Ms. Cozzini's ability to negotiate with lenders and make use of all available remedies to help you keep your property or to stay in your home, or to provide the best exist strategy, depending upon your particular circumstances. 

If you are in default on your residential or commercial mortgage, please contact Maria R. Cozzini, Esq. at (908) 232-2414 or contact us online to schedule a free initial consultation to discuss potential options for your specific case,

Maria R. Cozzini, Esq., provides a strong defense to foreclosure based upon your individual facts and circumstances.

When your lender initiates a foreclosure action, it's essential that you take prompt action. Otherwise, the foreclosure action will quickly proceed as  uncontested and your property may be sold at a sheriff's sale. Foreclosure is a very serious matter and requires an effective legal response. Maria R. Cozzini, Esq., will review your case and determine any legal defense to contest the foreclosure action,  Depending on your circumstances, we will get to work to uncover the facts and may be able to challenge the foreclosure if we find:

• Your lender failed to follow state-mandated procedures.
• The mortgage company made errors such as incorrectly applying payments, crediting payments to the wrong party, charging erroneous fees, or overstating the amount of your loan.
• Your lender failed to provide monthly billing statements or failed to properly escrow your loan for taxes or insurance.
• Your lender failed to notify you of your loan default or to provide required notices.
• Your lender does not have standing to foreclose.
• You are an active-duty service member.

Foreclosure defense is difficult.  Money was loaned and the creditor is normally entitled  to repayment.  However, we will explore all potential defenses to a foreclosure action. If these situations or others exist that show your lender has engaged in a foreclosure action that's illegal or unwarranted, we will press your case in court. During the foreclosure, we will explore all options to help you save your property. If filing for bankruptcy offers you a better option for repaying your debt and keeping your property, we can guide you through the process.

There are loss mitigation options to foreclosure.

In many cases, borrowers may be able to work with their lenders to avoid foreclosure. Maria R. Cozzini, Esq. can clearly and effectively present your case to your mortgage company or bank, so you can potentially make use of these options:

• Mortgage modification —  You may be eligible for a loan modification, which capitalizes your arrears into a modified principal balance.  Lenders can reduce the interest rate, extend the loan term, and defer payments, when considering a request for a loan modification.  Lenders will usually require a complete loss mitigation application, including income, expense, and asset information. Maria R. Cozzini, Esq. can negotiate with your lender to have the terms of the original loan modified to payment amounts you can afford, while capitalizing or deferring the mortgage arrears that you owe..
• Loan Forbearance -- If your failure to make timely mortgage payments resulted from a temporary financial setback that you can recover from, we may be able to seek loan forbearance from your lender. Forbearance gives you a temporary reprieve from making payments while your lender agrees not to foreclose during the forbearance period. Once your hardship is resolved, mortgage payments continue.
• Reinstatement --  Although not possible for most borrowers, a defaulted loan can be reinstated up until entry of the final judgment of foreclosure by paying the amount due for the mortgage arrears and bringing the loan current. Withdrawal from a 401(k) or retirement account or a loan form a family member may provide the funds needed to save your property.

Lenders prefer loss mitigation options to foreclosure, due to the cost and delay associated with a foreclosure proceeding.  We will press for a favorable outcome in your case, where a loan modification or forbearance can resolve the default and allow you to continue making payments while keeping your property. If you are in default, please contact our office as soon as possible.   Earlier intervention will usually result in a better outcome.

Exit strategies may provide the best option in certain cases.

Loan modification or forbearance may not be a viable option in all cases. Depending upon your income and expenses, a lender may deny loan modification assistance if the modified payment will not be affordable. In those cases, a sale of  your property may be your best option to avoid foreclosure.  When selling your home or property is in your best interest, we can negotiate with your lender to provide these options:

• Market Sale —  If the market value of your property is higher than the amount that you owe on the mortgage loan, the property can be listed for sale and the loan paid in full at closing, with the net sale proceeds after closing costs paid to you.  This would allow you to keep any equity in the property after the sale.  In the present strong market, many defaulting borrowers are able to cash out their equity rather than lose their property in a foreclosure, but timing is critical.
• Short sale — If the amount that you owe on your mortgage loan is greater than the current market value, a short sale may be an option. A short sale allows you to sell your home for less than the amount you owe on the loan and keeps your lender from foreclosing, which benefits both parties. The lender would review all closing costs and would have to approve the sale based upon a short payoff amount that would be paid to the lender at the closing.  In certain cases, the lender may agree to cash for keys or relocation assistance for the borrower.  Short sale is preferred over a foreclosure, since the lender avoids the cost and delay of the foreclosure process.  Short sale provides a clean exist strategy for the borrower, where the house or property is sold to a third party, without the stress of a sheriff sale.  

• Deed in lieu of foreclosure — A deed in lieu of foreclosure allows you to relinquish your interest in your home for the amount of the loan by exchanging your deed for the loan cancellation. We will negotiate with your lender on the terms and meticulously prepare the agreement to ensure you are completely relieved of the loan debt. For a deed in lieu of foreclosure, there can be no other mortgage loans or judgments affecting the property. Deed in lieu may also allow for cash for keys or relocation assistance.

While the decision to sell your home or property can be a difficult one, we will make sure you understand the benefits and risks so you can proceed fully informed before engaging in any transaction. In all cases, our goal is your best interest  when facing foreclosure.

Contact Maria R. Cozzini, Esq., for help if your loan is in default or if you are facing foreclosure.

At the Law Office of Maria R. Cozzini, LLC we assist borrowers when faced with defaulted mortgage loans. We will explain your options and guide you in making the best decision for your circumstances. Call Maria R. Cozzini, Esq., at (908) 232-2414 or contact us online to schedule your free initial consultation.