Frequently Asked Questions Pertaining to Foreclosure Matters
Do you represent borrowers or lenders?
Unlike many law firms, Weiss & Weiss represents both borrowers and lenders in foreclosure cases. We have extensive knowledge and experience litigating both sides of foreclosure cases. Our firm has the ability to commence foreclosure actions on behalf of both institutional and private lenders, as well as defend such actions. We believe that representing both lenders and borrowers gives us a unique perspective into such matters and gives us an advantage over a firm that only represents lenders or borrowers.
Do you charge your standard hourly fee or a flat rate for foreclosure matters?
Depending on the situation, our firm may charge either a flat rate or an hourly rate for these matters. If a lender has several non-performing loans requiring legal action, we will generally negotiate a flat rate for the representation on a per-case basis. For defending borrowers, we charge an hourly rate, as we cannot anticipate how extensive the court time will be in order to resolve a matter brought by a lender when the borrower is in default.
I have bought a non-performing loan from the original lender. What is my legal position?
Our firm frequently represents parties who have purchased non-performing mortgages from institutional lenders. In such cases, we ensure that the purchasing party has the legal right to foreclose on the property and that the transfer papers are legally correct. We will then commence foreclosure proceedings, or, if the institutional lender has already done so, we will arrange to have the purchasing party legally substituted for the institutional lender and our firm will litigate the action on behalf of our purchasing client.
I am a private lender whose borrower has defaulted. Can you assist me?
Our firm frequently represents lenders who have made loans on single properties to the property owner. We can expeditiously commence foreclosure proceedings on behalf of such lender and we will ensure that the lender’s legal interests are protected.
I am renting a property, and the property is in foreclosure. What are my legal options?
This situation arises fairly often among our client base. In such situations, we will monitor the foreclosure action to ensure that the renter’s legal right to possession is maintained. We will often advise our clients to pay rent due to the landlord to be paid to our firm to be held in escrow, pending resolution of the ownership of the property. Keep in mind that New York law protects tenants with a valid lease, even when the property being rented is in foreclosure. Our firm is expert in ensuring that our clients can remain in possession.
What is the end result of a foreclosure litigation?
After an action is commenced, eventually a Court will issue a foreclosure judgment allowing the property to be sold at public auction. If no other parties bid at the auction, the lender will take title to the property through a referee’s deed. If a third party bids more than the amount owed to the lender, then the third party may take title to the property after paying the outstanding debt to the lender, plus costs and attorney’s fees.
What documents are required when meeting with your attorneys?
In order to properly evaluate a case, we request that a copy of all loan and mortgage documents be provided to our firm. We would also request copies of all written communications between lender and borrower be provided. If the loan has been purchased from a third party, we require copies of all assignment documents. Finally, if the matter is in litigation, copies of all court documents. If same are not available, we can obtain same directly from the Court.
Do you handle cases throughout the metropolitan area?
Our firm handles matters in all five boroughs of New York City, as well as Westchester, Rockland, Putnam, and Nassau Counties.
Do you handle both commercial and residential foreclosure matters?
Our firm handles both commercial and residential foreclosure matters. Recent changes in New York laws impact foreclosures that are residential in nature. Our attorneys are familiar with all laws governing this complex area and will ensure that they are complied with in all foreclosure actions.