Tanya P. Dwyer Foreclosures Law Blog on Lawyers.com

We hear it in the news every day, foreclosures and homelessness are
rising and compounded by jobless rates.  I'm really surprised about the
number of people who sit back and let it happen to them.  Homelessness
is prevented every time a foreclosure is prevented. Will it take work?
Yes.  And if you're willing to do it, the rewards can be really great.

This entry discusses what home owners can do to lower their mortgage
payments to an affordable level.  Please, check out this entry, if
you're seeking a mortgage modificaiton.

Please, note that the following is not intended to be legal advice. 
Furthermore, there is no attorney-client relationship.  Everything
written below is merely my opinion about the state of the law in New
York.

So your lender is demanding payment in full.  When the judge slams
that gavel, one of two things will happen: you will keep your home
because you were proactive during foreclosure, or you will lose your
home.  Be proactive.  It's possible to save your home even at this
point.

Some homeowners, most notably the elderly and low income earners,
were rushed into bad loans.  They signed documents they did not
understand because a lawyer they did not choose, told them to sign. 
Sometimes my clients come to me with mortgage documents that are so
ugly, I know I'll be able to get great new terms for them to keep the
home just by picking up the phone.

The key to this process is (1) legitimately claiming that you were
not sophisticated in real estate matters at the time you signed and (2)
getting a person who understands mortgage documents to look for the
mistakes.  Some people only need to find $100+ worth of mistakes in a
document to get the outcome they desire.   Sometimes, there's a bonus -
improper service of the 90 day foreclosure notice. Improper service can
stop or reverse a foreclosure sale.

Foreclosure is a time sensitive proceeding.  Here are some cautions (not legal advice).

1. Lenders will take your money and continue with the foreclosure sale.
2. Once you have that 90 day notice, it's time to talk to the judge, not your lender.
3. Put your mortgage payments in a separate bank account, and answer the summons (answer the court, not your lender).

Attorneys in Brooklyn, Manhattan and the rest of NYC are becoming
pros at stopping foreclosures in this new world of sub-primes, balloon
payments, and new regulations.  If you're eligible for legal aid, it is
an excellent resource.

Whatever your income, take the time to figure out if you want to
keep your home or rent a new one.  Working with a professional may take
a few hours of talking and reminiscing and looking for documents, but
isn't it worth it for the chance to save your home?