New York Zombie Foreclosure Warning: An Army Of Bottom Feeding Lawyers Are On The March To Shake You Down!
MFI-Miami is issuing a New York Zombie Foreclosure Warning!
Armies of bottom-feeding lawyers armed with thousands of New York Zombie foreclosures coming! They are barging down the doors of courthouses across New York like Walmart shoppers on Black Friday hoping for free money for their clients.
This time around its not first lien holder seeking deficiency judgments. It’s the servicers for the second mortgage who have risen from the dead like a horde of zombie.
Homeowners who faced foreclosure in the wake of the 2008 financial crisis could be served at any time. It was assumed these lenders wrote off the debt or accepted short payoffs from the first lien holder.
Most foreclosure victims have moved on with their lives. They have also made their foreclosure a distant memory. They are now back to sipping their Pabst Blue Ribbons and enjoying the benefits of a robust economy.
Process Servers Show Up At Your Door Years After A Foreclosure Like A Teenager Trying To Tell You That You Are Their Father
We issued this New York zombie foreclosure warning because we’ve heard process servers are knocking nearly a decade after their foreclosure. Yes, it’s quite the shock. It’s kind of like a teenager showing up at your door telling you that you are her father.
Lawyers handling this 2nd wave of New York zombie foreclosures are more dangerous and insane than before. They can also permanently scar a person’s credit rating for years.
Usually, it’s the first lender who foreclosures and people generally square off with them. It was assumed the 2nd mortgage lender was paid off when the 1st lien holder took possession. Or the 2nd lender wrote off the loan and walked away sulking.
Normally, that would be how it would go down.
Unfortunately, the financial crisis was such a disaster on the US housing market, that conventional wisdom went out the window.
Lenders went into panic mode. It became dog-eat-dog and every man for themselves. First lien holders took what money they could from deflated home values. Consequently, they cleared the title on the property and moved on. Thus, leaving the second lienholder holding worthless paper.
New York Zombie Foreclosure Warning: Lawyers Pursuing Zombie Foreclosures Are Pulling Some Crazy Shenanigans
Lenders of defaulted second mortgages are feeling pretty confident and cocky now that the economy has picked up. They have one of their own in the White House, home values are on the upswing and people have lots of disposable income. So here comes the bottom-feeding lawyers.
Many times, these cases are garbage and are past the statute of limitations. Yet, lawyers are filing them anyway and pulling shady tricks in the hopes of getting $15,000 or $20,000.
New York Zombie Foreclosure Lawyers Think They Are Contestants On The Price Is Right
It also seems as if the second mortgage holder thinks they are contestants on the TV game show, The Price Is Right. Lawyers claim the homeowner owes four different deficiency balances usually ranging from $15,000 to $28,000 in the complaint.
It’s as if lawyers believe they are bidding on a motor scooter on The Price Is Right. They are hoping the judge is Bob Barker who will tell them what the right price is.
Even the pre-foreclosure Letters of Acceleration make no sense. One homeowner who contacted MFI-Miami about her zombie foreclosure received two letters of acceleration from a law firm hired by an unknown mortgage servicer.
The letters dated 24 days apart state two different very different outstanding balances owed by the former homeowner. The first letter stated the former homeowner owed roughly $17,500 with the second letter stating she owed over $25,000.
New York Lawyers Claim 2nd Mortgages Were Never Foreclosed On
I had a New York lawyer call me last month on a case involving a zombie foreclosure on a 2nd mortgage. The lender filed a collection action against her client in October 2019 from a property her client lost in foreclosure in 2014.
The plaintiff is alleged Breach of Contract. New York has a 6-year statute of limitations on contracts like most states.
The plaintiff also claimed they had a right to collect under New York’s 20-year statute of limitations. They claimed the foreclosure gives them that right. In New York, foreclosures are considered de facto judgments.
Yet, there is one small problem with this argument. The plaintiff, in this case, didn’t bring the foreclosure action in 2009. The first lien holder did. The first lien holder executed the foreclosure and took title to the property. They then performed a post-redemption sale with a loss of $50,000. Only the first lien holder can invoke rights under New York’s 20-year statute of limitations law.
Call MFI-Miami today to learn more at 212.381.6035.
Also, Check Out These Other Articles About New York Foreclosures:
New York Foreclosure Lawyers Must Now Prove Standing To Foreclose
Real Estate Vultures Circle New York Homeowners In Foreclosure
New York Reverse Mortgage Scam Alert!
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