East Northport, NY asked in Foreclosure for New York

Q: NY: In foreclosure past 5 years represented by council on per diem basis.

Mr xxxx took over servicing from Nationstar for Freddie Mac. They sent someone to my home 2 months ago to tell me to call Mr xxxx to discuss mitigation. They apparently don’t know (care) that I’m in litigation. Nothing to lose so I speak with them and provide all my info. They respond, “we have all the docs we need, sit tight”. 30 days later...denial letter. No reason except Freddie won’t make deal. I send them appeal letter. They respond “we take this very seriously. Will get back to you in 30 days”. Two weeks later get letter “We are no longer your servicer, in 2 weeks you will have to deal with new servicer Shellpoint. Mr xxxx never responds to Appeal. Shellpoint just sent me Validation of debt letter with past due notice, late fees, escrow, “this is an attempt to collect a debt” notification. Where is my Appeal decision? Do I now begin anew by sending Fair Debt Collection Practice 1692g to Shellpoint? Can they do all of this with full knowledge that I have case in court? HELP

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3 Lawyer Answers
Derek John Soltis
Derek John Soltis
Answered
  • Foreclosure Defense Lawyer
  • Jersey City, NJ
  • Licensed in New York

A: There is no longer any laws that mandate a bank give loan modifications except under FHA loans, and even then there are tight deadlines. You should contact Shellpoint about a loan modification, while pointing out you were waiting for an answer on your appeal.

Jonathan David Warner agrees with this answer

1 user found this answer helpful

Michael David Siegel
Michael David Siegel
Answered
  • Foreclosure Defense Lawyer
  • New York, NY
  • Licensed in New York

A: These things are bureaucratic disasters. Just start over with the new servicer. There is no violation against you of any law.

Jonathan David Warner agrees with this answer

1 user found this answer helpful

Jonathan David Warner
Jonathan David Warner
Answered
  • Foreclosure Defense Lawyer
  • Albany, NY
  • Licensed in New York

A: If you were my client, I'd advise you to start over with the new mortgage servicer. I'm not certain what there is to "litigate" with respect to your case, but most decisions favorable to borrowers are overturned by an appellate court. Thus, it would likely behoove you to continue working amicably with the new mortgage servicer.

Technically speaking, however, RESPA requires the new mortgage servicer to begin their review where the prior servicer left off. With this having been said, the maximum recovery for you, personally, is $2,000.00. Your attorney - if you elected to retain an attorney for this separate matter - could collect attorney fees (no limit on the amount), but this award would surely be comparatively insignificant in proportion to the amount in controversy on the mortgage.

Further, given that you have a case in Court, they aren't required to negotiate with you on any loan modification. It sounds like they're trying to work with you and, for what it's worth, you might consider returning the favor.

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