New York foreclosures likely to continue as ARMs begin to re-set over next 4 years

As bad as the foreclosure problem has been, it’s apparently ready to get worse, according to this article in the New York Times (“Loans that looked easy pose threat to recovery“).

All the adjustable rate mortgages (“ARMs” for short) we’ve been hearing about are getting ready to re-set over the next four years, and that spells trouble for New York homeowners facing financial difficulty. Over 600,000 ARMs are expected to re-set, according to First American CoreLogic.

“This was a loan meant for sophisticated investors, or people who expected their cash flow to increase over time,” said Elena Warshawsky, a residential credit analyst with Barclays Capital, which expects 81 percent of the option ARMs originated in 2007 to default, with many ending in foreclosure.

Of course, this will affect not only people with ARMs facing foreclosure but everyone facing mortgage problems since the banks will now likely be in a less secure positions themselves not to mention being overwhelmed by all of the foreclosure and loan modification work.

If you’re a New York homeowner facing mortgage problems, foreclosure issues or considering bankruptcy in New York, please feel free to contact me for a free initial consultation to ask questions and get an assessment of your situation. It’s a difficult situation, but there are options for dealing with it. And the best way to make sure you know all of your options is to sit down with an experienced bankruptcy attorney.

ARMs, Bankruptcy, Brooklyn Bankruptcy, Chapter 13, Chapter 7, Foreclosure, Foreclosure mediation, Loan modification, Mortgage, New York Bankruptcy, New York Bankruptcy Lawyer

Rosenberg, Musso & Weiner, L.L.P
26 Court St # 2211
Brooklyn, NY 11242, USA
718-855-6840
http://nybankruptcy.net/

Recent Posts

Beware Grace Periods, Debtors

February 7, 2022

Too often, debtors see grace periods offered by lenders as free benefits. “Grace” makes it sound so innocent. However, debtors who routinely rely on grace periods when making payments will find themselves facing financial difficulties that might lead to bankruptcy. The reason is that although creditors offer grace periods to debtors, they also use them

Bankruptcy May Not Rescue You From Vicious Personal Disputes

January 21, 2022

Bankruptcy is a technical process that assumes everyone working within it is mostly rational. To the extent that it expects parties to deviate from irrational behavior, the Bankruptcy Code and its accompanying rules include incentives to keep parties in line. Creditors are usually large and impersonal, and they rarely care if their debtors file bankruptcy.

Non-Lawyers’ Explanations of Bankruptcy May Be Wrong

January 10, 2022

Do you have financial problems? Do you tend to ask your friends for advice? Is one of your friends an experienced New York bankruptcy lawyer who will explain the process for you? Are your friends otherwise knowledgeable people? The answer to these questions may be, “Yes but you don’t know it.” Although many bankruptcy lawyers

6 Steps to Take Before Filing Bankruptcy

January 3, 2022

Leaving your case to an experienced New York bankruptcy lawyer is not the only step on the to-do list before filing bankruptcy. There are many things debtors should do (and not do) before they file, and the more organized and mindful debtors are, the easier the process will be and the more effective the result.

Social Security Number Not Necessary for Bankruptcy

December 2, 2021

A question that’s commonly asked about New York bankruptcy is whether a debtor needs a Social Security number to file. Debtors ask because they sometimes run across the bankruptcy form title, “Your Statement About Your Social Security Numbers” (B 121), which asks debtors to list their current and prior Social Security numbers. The new bankruptcy

How Can a Debtor (or Creditor) Get a New Trustee?

November 19, 2021

The trustee in a New York bankruptcy case is usually not the debtor’s ally. His or her purpose is mainly to administer the bankruptcy estate or ensure the debtor’s repayment plan goes according to plan. Trustees pursue preference payments, fraudulent conveyances, and other malfeasance committed by debtors. They frequently initiate adversary proceedings against debtors. In

Free Consultation

(718) 855-6840

The office is open as per the NYS Covid-19 guidelines. We are now doing both in-person and telephone consultations. Please call the office at 718-855-6840 to schedule a time to speak with one of our experienced bankruptcy attorneys.