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TJ, Esq.
TJ, Esq., Attorney
Category: Real Estate Law
Satisfied Customers: 12212
Experience:  JD, MBA
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I would like to know what options are available to me to

Customer Question

I would like to know what options are available to me to reclaim my property when mortgagee is overdue in monthly payments due to me when mortgage instrument states a time frame for payments to be made. the mortgagor is a corporation and may file for a bancrupcy . I want to know what I have to do to legally to optain my poperty back. the mortgage i hold is currently is filed with the county clerk in my jurisdiction of Suffolk county,n.y. can I file all necessary papers or do I need a attorney
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  TJ, Esq. replied 1 year ago.

Hello and thank you for the opportunity to assist you. My name is ***** ***** I will do my very best to answer your legal questions.

However, I don't quite understand the situation. You mentioned a mortgagee, a mortgagor, and you as if you are all different parties. But you also mentioned that you hold a mortgage, and you further mentioned that you own the property in question. Those facts don't really fit. Can you please clarify the facts and each party's role in this problem?

Thank you.

Customer: replied 1 year ago.
I currenty hold mortgage on property and I am due the monthly payments that are in arrears to me. I sold property to a corporation which may file for bancruptcy
Customer: replied 1 year ago.
ar you still there
Customer: replied 1 year ago.
I haven't heard from you I have paid your service and would like to hear from you
Expert:  TJ, Esq. replied 1 year ago.

Hi again. Thank you for clarifying.

I am in the process of typing an answer for you. Please bear with me while I continue typing. Thank you.

Expert:  TJ, Esq. replied 1 year ago.

So you are the mortgagee and the seller. The corporation is the mortgagor and the owner, and it may file for bankruptcy.

First and foremost, you must foreclose, and this isn't something for a layman to do. You will need to retain an attorney to handle this for you. Foreclosing is the process by which the property is sold at auction, and the proceeds are then given to the mortgagee to apply towards the unpaid loan. If the selling price does not cover the entire loan balance, then the mortgagee can sue for a deficiency judgment, which is an unsecured debt (though it can become secured if the mortgagor has other assets to go after). In most cases, the mortgagee ends up buying the property himself at the auction because the property is often not worth the balance of the loan, and the mortgagee does not want the property to sell to a third party for too little. So, there is a good chance that you'll end up with ownership to the property after the foreclosure sale.

As for the possible bankruptcy, it will temporarily stop a foreclosure. However, the good news is that you can file a motion for relief in the bankruptcy court. If granted (and they almost always are), then you will have the blessing from the bankruptcy court to continue with the foreclosure sale. Unfortunately, a bankruptcy may bar you from obtaining a deficiency judgment against the corporation. Accordingly, it's possible that your only relief, if a bankruptcy is filed, is the foreclosure sale itself.

Thanks for your patience while I typed that out. Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied.

Customer: replied 1 year ago.
thank you for your assistance and would like to know approx. how long something like this would take and if I could incur any other financial costs it may cost me prior to a forclosure and a general legal cost for services from attorney. I presume I would lose all payments due to me while in process of forclosure etc.
Customer: replied 1 year ago.
also can corporation operate freely while litigation is in progress and can they cause property to fall in disrepair or other situations to allow property to lose value
Expert:  TJ, Esq. replied 1 year ago.

Hi again.

It will likely take about 9 months to foreclose in NY. This includes the time it will take to send a "breach letter" (i.e., a formal letter informing the mortgagor that he has 30 days to cure the default), and for the court to rule in your favor, and finally to advertise and sell the property.

Your foreclosure expenses (such as attorney fees, advertising costs, etc.) would be added to the balance that you are owed.

Yes, the corporation can continue to operate while the issue is litigated. Unfortunately, the corporation can indeed allow the property to fall into disrepair. If it vacates the property, then you have the right to secure it (e.g., change locks, winterize it, etc.) to prevent further damage, but if the corporation retains possession during litigation, then you will have to wait until after the sale (and possibly after an eviction) in order to get access to the property.