Latest news with #ForeclosureAbusePreventionAct
Yahoo
30-04-2025
- Business
- Yahoo
What Foreclosure Does to Your Credit Score - and Why It Doesn't Have to Be the End of the Story
Foreclosure can significantly damage your credit, but it doesn't have to be the end of the road. By reviewing the foreclosure process for legal violations and disputing inaccuracies on your credit report, you can potentially save your home and rebuild your financial future. NEW YORK CITY, NEW YORK / / April 30, 2025 / Foreclosure can severely damage an individual's financial future - but it doesn't stop there. It also disrupts families, destabilizing entire households. However, with the right legal review, that damage can often be prevented or corrected. When a homeowner falls behind on mortgage payments and the bank attempts to take possession of the property, the consequences can last a long time. One of the most immediate and devastating impacts is a significant drop in the person's credit score, often by up to 100 points. This foreclosure remark can stay on the file for seven years, affecting almost every aspect of someone's credit life, from renting an apartment to qualifying for a credit card, or even passing background checks for employment. However, foreclosure doesn't have to be the end of the story. In many cases, a thorough legal review of the foreclosure process can overturn the legal action, saving the property. Likewise, a careful review of the credit report might uncover errors or violations that could have contributed to a lower credit score even before the foreclosure remark. What Foreclosure Does to Your Credit Score - And Why It Matters Foreclosure is one of the most damaging entries that can appear on a credit report. Credit agencies view it as a serious failure to pay debt, which signals high risk to future lenders. Beyond the rating score, this event often results in limited access to affordable housing, higher interest rates, and lost financial opportunities. Yet, many consumers are unaware of what actually happened during their foreclosure. From incorrect notifications to rushed legal procedures, there are many ways a foreclosure can be mishandled. A Legal Review Can Help Homeowners Safeguard Their Rights While some may recommend simply "waiting it out," a foreclosure defense attorney will review the foreclosure process from the start, which is critical. Identifying any violations or procedural errors early on can provide legal grounds to challenge foreclosure and potentially protect the homeowner's rights. A proactive legal review can help individuals determine if their rights were violated under the foreclosure process. A major legal instrument for defending legal rights is the Foreclosure Abuse Prevention Act that provides an extra layer of protection for homeowners facing an unfair or improper foreclosure. This law requires lenders and financial institutions to follow fair and transparent procedures during the foreclosure process, ensuring that consumers' rights are respected. Foreclosure Defense Attorneys with a Long-Term View The emotional toll of foreclosure often leads homeowners to accept it without questioning. Feelings of shame, confusion, and fear of further legal complications prevent many from seeking help Petroff Amshen LLP's legal approach is focused on immediate defense and long-term protection. As experienced foreclosure defense attorneys, the firm investigates not only the legality of the foreclosure itself but also its ongoing repercussions, particularly how it has affected a client's credit profile. The legal team takes a comprehensive approach: Was the foreclosure properly executed? Were the consumer's rights violated? If so, Petroff Amshen LLP employs strategies to directly address those issues, combining strategic litigation with informed legal action. A Comprehensive Legal Review to Mitigate Further Damage Petroff Amshen LLP encourages anyone affected by a foreclosure to seek a legal review, not only of the foreclosure event itself but of its ongoing impact. While foreclosure may seem like the final word, it doesn't have to define someone's financial future. Credit Repair After Foreclosure A foreclosure may be removed from a credit report after seven years, but consumers don't have to wait that long to take action. An accurate attempt to rebuild someone's financial future should also involve reviewing the report for inaccuracies and disputing any errors that could be impacting the credit score. Even before the seven-year mark, correcting additional issues can boost their credit score and help restore financial stability. Under the Fair Credit Reporting Act, consumers have the right to dispute any information on their credit report that is inaccurate, incomplete, or unverifiable. This includes disputing the presence of foreclosure if it is being reported for more than seven years and any other wrong remarks on someone's credit accounts. If inaccuracies are found and reported, this could lead to an immediate improvement in the consumer's credit score, allowing them to rebuild their financial standing faster. Petroff Amshen LLP encourages homeowners to act quickly to ensure any potential damage to their credit profile is minimized. A legal review not only helps address immediate issues but also sets the foundation for future financial success. Contact Information Gabriel Botero Media Relationsmedia@ 336-4200 SOURCE: Petroff Amshen LLP View the original press release on ACCESS Newswire Sign in to access your portfolio
Associated Press
15-04-2025
- Business
- Associated Press
New York Court Shuts Down Foreclosure Attempt, Citing Expired Deadline Under the Foreclosure Abuse Prevention Act
Petroff Amshen LLP's foreclosure defense attorneys secured a major legal victory after a New York court dismissed a time-barred foreclosure case. The ruling confirms that the Foreclosure Abuse Prevention Act ('FAPA') applies retroactively and blocks financial entities from manipulating timelines. This decision protects homeowners and strengthens legal defenses against long-standing foreclosure threats. NEW YORK CITY, NEW YORK / ACCESS Newswire / April 15, 2025 / A Brooklyn homeowner has won a major legal battle after a New York court dismissed a foreclosure case brought by a financial entity. The court ruled that the foreclosure was filed late-and that the bank couldn't legally restart the process after the deadline had already passed. The case was handled by Petroff Amshen LLP, a New York law firm that fights for homeowners facing unfair or prolonged foreclosure threats with legal advocacy for its clients. The foreclosure in question was tied to a mortgage that had been the subject of a previous foreclosure case years ago. That earlier case had been dismissed, but the financial entity later tried to bring it back to court by sending a letter in 2018-claiming the mortgage was no longer accelerated. That move was meant to restart the clock and give them more time to file a new foreclosure. Thanks to the Foreclosure Abuse Prevention Act ('FAPA')-designed to stop financial institutions from dragging out foreclosure cases for years-banks can no longer restart the timeline just by sending a letter. The law protects homeowners from being stuck in legal limbo and applies to cases that were already in progress before the law was passed. Importantly, the court confirmed that FAPA can be applied retroactively, even to foreclosure actions that started before the law existed. The court rejected arguments that this violates constitutional rights like due process or contract protections, stating that the law was created to fix a confusing and unsettled area of foreclosure litigation. Because the rules around deacceleration weren't clear in 2018, the court determined that applying FAPA retroactively does not unfairly harm financial institutions, and instead accurately protects homeowners' rights. 'This case represents more than just a legal victory-it's a critical moment for homeowners who have been left in limbo by the banking industry's inconsistent and self-serving tactics,' said Steven Amshen, founding partner of Petroff Amshen LLP. 'The court sent a clear message: you cannot manipulate time and law to trap people in endless foreclosure cycles. FAPA exists to level the playing field, and we're here to enforce it.' The judge agreed that the six-year deadline to start a foreclosure had already passed, and that the attempt to reset the clock wasn't valid under the law. As a result, the court dismissed the foreclosure case entirely and denied all of the financial entity's requests, including its efforts to move forward with the process. This ruling is part of a growing number of decisions that show how FAPA is helping New Yorkers stand up to unfair foreclosure attempts. It sends a strong message: homeowners deserve clear answers, legal protection, and finality-not years of stress caused by repeated filings. Key highlights from the court's decision: Petroff Amshen LLP, a New York based law firm, has been advocating for New Yorkers' to keep their home since the 2008 recession, helping people fight back against foreclosures, mortgage abuse, and credit damage. Their foreclosure defense attorneys work directly with homeowners to challenge illegal practices and defend their rights in and out of court. 'As long as financial entities continue to use delay tactics and stretch the law to their advantage, we will be in court fighting back,' added Mr. Amshen. 'Our clients deserve finality, dignity, and protection-and we won't stop until they get it.' Contact Information Gabriel Botero Media Relations [email protected] (718) 336-4200 SOURCE: Petroff Amshen LLP press release
