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Question
Recently my wife and I have been served with a summons of foreclosure, however we have also gotten and signed a mortgage modification agreement with the mortgage company. One I would like to know if I should answer to the summons? or does the mortgage company handle dropping the lawsuit. I am still within my 20 days to reply. I live in NY and according to the law I have 20 days to answer the court. Also I would like to know which format I should address the court. The mortgage company is telling me I have time to make the initial payment to start the new agreement. Please advise thank you for your time.
Yes, by all means you need to respond to the summons but first I would ask the courts for an extension of time in order to seek counsel. This should give you an additional 30-60 days before the foreclosure can move forward and allow time to consummate the modification. They should dismiss the case once they get the first payment and signed agreement. If not file your answer and explain that they did not honor their agreement and modify the loan. What my concern is why did they file foreclosure if they were already working on the modification? It is counter productive. But, it is the nature of the beast.
As for the format for the letter, just make sure you make note of the case number and the name of the mortgage company. Make sure to sign and date your request and send it to the courts by certified mail, return receipt requested.
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.
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