To be clear, when we talk about Long Island foreclosure attorney, we mean home loan foreclosure. Now, it is undisputed that for majority of individuals, the most significant and high valued purchase they will make, is a family home i.e. house and lot, condominium, townhouse, apartment complex, etc. The bottom line is you purchase a property involving a house and a lot, and you are named as an owner.
Again, for majority of homebuyers, the purchase of real estate property is usually done via mortgage. In other words, a bank/lender forwards the full purchase price to the seller, and you undertake to pay the bank/lender stated number instalments, for a specific period of time, comprising of the principal and interest.
In case you fail to pay a specific number of instalments, the bank/lender sends you a couple of warning letters. If you are still unable to pay, you are sent a notice of foreclosure. Again, if you are unable to pay, the bank/lender will undergo the appropriate procedure that will divest you of ownership and possession of the property subject of the mortgage.
When Do You Need a Long Island foreclosure attorney?
Most of you will probably answer this way “When you are under threat of foreclosure”. You aren’t wrong of course. But the services of a Long Island foreclosure attorney is also relevant even prior to or during the negotiations for the mortgage. Why is that?
First, by law, banks and lenders are duty bound to explain to you in detail every aspect of the mortgage. The problem is, this rarely happens. To be honest, the homebuyer is partly to blame. This is because they tend to faint full understanding while the lender let’s it go at that.
By hiring a foreclosure attorney, or at least consulting with one, you are given useful bits of information that we like to call red flags. By knowing these bits of info, you get to ask the right question and the lender is forced to admit to a few embarrassing bits of information.
For example: You apply for a home loan and are pre-approved for what is known as an Adjustable Rate Mortgage. The low interest rate is so appealing that you think it is a good idea. You are lulled into the a sense of confidence. You can pay for a home loan! Yes you understand that after the 5 year fixed period your interest rate will be recomputed. But you believe that the recomputation will be somewhere near your initial fixed rate.
For example: the 5 year fixed period for your ARM loan is 7.22%. So you expect anywhere around 8% after the recomputation. The problem is, in most cases you’ll be lucky to get 12% interest rate after recomputation. There have been horror stories about a jump of more than 2 digits from the initial fixed rate to the recomputation. It gets worst. The recomputation happens several times during the lifetime of the loan.
By consulting with a Long Island foreclosure attorney, you get a different perspective of how home loans work. You get to ask questions to a disinterested third party who has expertise in what the law demands of banks and lenders as well as your rights and duties as a buyer of real estate. All these information that you get forms part of your due diligence.
The bottom line is, in the grand scheme of things, how much is $500 dollars when you consider the value of the property you are purchasing. Is it not better to spend a little bit more just to make sure that you get the best deal possible and are given fair warning on specific aspects of your loan contract?