March 25, 2024

Help With Mortgage Foreclosure: What You Need to Know

There’s many courses of action to protect your biggest asset from foreclosure

Navigating Mortgage Troubles: Insights from a Recent Court Decision

Falling behind on mortgage payments is a daunting reality for many homeowners. It's a situation that can quickly escalate to the risk of foreclosure—a legal process where a homeowner loses their property due to the inability to keep up with mortgage obligations. But what options do you have when faced with this distressing scenario? A recent court decision on one of the cases handled by Petroff Amshen LLC sheds light on this very issue, providing critical insights and hope for those seeking to save their homes from foreclosure.

"With millions of homeowners in distress, many borrowers are continuing to experience serious problems seeking loan modifications or other alternatives to avoid foreclosure." - CFPB

Understanding the Legal Battle

In the case of Wilmington Savings Fund Society, FSB v. Williams*, homeowners John Williams and Karen Anderson found themselves in the throes of a foreclosure action initiated by their lender. The legal proceedings centered around the lender's compliance with specific procedural requirements before a foreclosure action can be commenced. These procedural steps are critical as they ensure homeowners are adequately notified and given a chance to rectify the situation before losing their homes.

An initial order denied our cross-motion seeking to dismiss the complaint or have a chance at amending the answer, as we were retained after the initial answer period. Our appeal granted us the answer, taking in our appellate claims as the amended answer.

The Importance of RPAPL 1304

A key aspect of the case was the application of RPAPL 1304, a legal requirement that mandates lenders to send homeowners a 90-day notice before starting foreclosure proceedings. This notice must be sent in a separate envelope from any other correspondence and cannot contain false or misleading information. The intent is to provide homeowners with a clear warning and opportunities to avoid foreclosure, such as seeking mortgage assistance or restructuring their loan.

The Court's Decision: A Ray of Hope

The court's decision was twofold. First, it found that the defendants did not prove that the 90-day notice was non-compliant with RPAPL 1304, thus not dismissing the foreclosure action outright. However, and most importantly for our clients and all homeowners facing similar challenges, the court allowed John and Karen to amend their defense. This aspect of the decision underscores the judiciary's openness to allowing homeowners to present additional arguments or evidence that could potentially save their homes from foreclosure. Immediately on amending the response as our appeal, the charges were rendered without merit and the home was thoroughly preserved.

The case of Wilmington Savings Fund Society, FSB v. Williams and Anderson offers hope and valuable lessons for homeowners struggling with mortgage payments. It emphasizes the importance of legal advice, understanding your rights, and proactively addressing mortgage difficulties. Remember, falling behind on payments does not automatically lead to losing your home—there are steps you can take to navigate the situation and save your house from foreclosure! At Petroff Amshen, we explore all options to actively cover your property.

*Client names have been changed to preserve their privacy.