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RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 26748
Experience:  10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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friend of my was late on mortgage for 3 month like 2 or 3 years

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friend of my was late on mortgage for 3 month like 2 or 3 years back, when they try to refinance, bank refused to refinance due to bankruptcy record, now they have not been able to pay their mortgage for the last 2-3 years and been live in the same house, what course of action they can take right now to prevent force closing ? they are live in state of New York
Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help solve your problem.

Good afternoon. I certainly understand the situation and your concern for them. Do they have any legal defenses? Have they spoken with the lender about a loan modification?
Customer: replied 3 years ago.

I think they did but lender seem to refused it from day one and I was told that was about 2-3 years ago. I will have more detail later when I talk to them to see what bank they are with, from what I understand, last time they try to do loan modified, the bank want security deposit like 20-30k in escrow account.

Chris, thank you for the additional information. If the lender has started the foreclosure proceedings, they have every legal right to raise any defenses which they may have, to prevent the lender from foreclosing. If they want to fight this, they should consider retaining legal counsel. If this is contested, it could allow them an additional 6-12 months in the home, if they have valid defenses to raise. Another option would be to see if the lender would consider an in-house loan modification, allowing them to retain the home. If they want a deposit, it is likely a result of the bank having questions about their ability to pay, if the loan is modified, so they are not back in the same position, in a few months. The lender has to be able to show they have standing and are the owner/holder of the note and mortgage. They also have to show that they complied with all conditions precedent and that there are no defenses which can be raised, preventing them from foreclosing.
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I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!
Customer: replied 3 years ago.

I am still gather some information from her, but so far I know it is Citibank, I will try to get more detail from her as I get to talk to her later to see if I can give you all the information at once

Ok, thank you.

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