Foreclosure Litigation

Weiss & Weiss represents both the owners of real property, as well as those private individuals who hold mortgages secured by real property, in protecting their legal rights in the event of a borrower’s default. If you are a borrower whose residence or other property may be in foreclosure, or threatened with same, our firm will initially negotiate with the lender for a modification of the loan in question.

If the matter goes to litigation, we will file an Answer with the appropriate legal defenses. In addition, we will attend the mandatory foreclosure settlement conference held in the Supreme Court of the County in which the property is located, and attempt to resolve the case through negotiation. Many of our clients have resolved their foreclosure matters through a loan modification negotiated by our firm.

We will also provide an appropriate legal defense if a modification cannot be negotiated. Foreclosure of a property requires many legal steps, and will we raise any issues with the Court if the lender does not follow appropriate legal procedures. These legal defenses will allow the homeowner to remain in their property while a resolution is negotiated.

In addition, if the owner is able to sell the property, we will handle the closing of the sale, ensure that the lender is paid and that any action is discontinued.

From the lender’s perspective, our firm also represents many private lenders who may hold a mortgage on real property. Our firm will negotiate with borrowers as may be necessary; and, if there is a default, using the proper legal procedures to enforce the security interest in the property. These legal procedures include the filing of a Notice of Pendency with the County Clerk regarding pending litigation and the commencement of a foreclosure action in the appropriate Court, including Westchester, Rockland and Putnam Counties, all five boroughs of New York City and Long Island.

Once a foreclosure action is filed, Weiss & Weiss will follow the correct legal procedures to have a receiver appointed for the property, as is standard in most foreclosure cases. The appointment of a receiver by the Court allows for a neutral third party to manage the foreclosed property, during the course of the foreclosure proceeding. As a foreclosure proceeding may take in the approximate range of six months to a year to resolve, it is vitally important that a receiver be appointed to protect the legal rights of the mortgage holder. A Court-appointed receiver will then issue notices to all tenants at the property advising them of their legal obligation to pay all rents to the receiver, and not to the current owner. The receiver will place all income from the property into a separate escrow account. This account will then be used by the receiver to pay the expenses for the property, such as utilities, property taxes, and insurance. This ensures that the building does not fall into disrepair and tax or other type of default during the foreclosure process.

During this time, our firm will then continue the litigation process by obtaining a judgment of foreclosure on the property. This can be obtained by several methods. If the property owner defaults and does not answer the foreclosure complaint, our firm will move the Court for a default judgment. If an answer is filed, we will generally recommend that we make a motion to dismiss the answer and for summary judgment as expeditiously as possible.

Assuming a judgment is obtained, the next step taken by our firm is to conduct a public auction of the property and bid on behalf of our client to obtain legal title to the premises. All auctions are legally advertised in compliance with the Court’s requirements. We also prepare post-auction documents as necessary to transfer the property to the successful bidder at the foreclosure auction.

We will also negotiate with all parties to attempt to resolve the matter more quickly in order to shorten the period of time required by the Courts to foreclose on property. We are familiar with commercial foreclosure procedures in all area Courts and will provide prompt, efficient, and personal service to our clients.