A subprime loan is a type of mortgage that is often offered to borrowers with less than perfect credit.  Subprime mortgages usually have higher interest rates to compensate lenders for taking the risk that the borrower will default on the loan.  The housing market crash of 2008 was due in large part to the fact that many borrowers with subprime mortgages defaulted on loans. that are  that has annual percentage rate (APR) on the first lien which exceeds 3% over the yield on treasury securities with comparable maturity periods measured as of the 15^th day of the month in which the loan was consummated.  Alternatively, where a second lien is involved, a subprime loan is defined as a loan with an APR that exceeds 5% over the yield on treasury securities.

Subprime loans receive special treatment in foreclosures.  If you have a subprime loan, you may be entitled to a settlement conference once the foreclosure has been filed.

Immediately consult with an attorney. New York State law requires that your lender get permission from the Court to foreclose on your home. Typically, banks initiate this process by filing a Summons and Complaint against you and then personally serving you with a copy. Once you have received a copy of these documents, you should immediately consult with an attorney or local organization that can assist you with filing an Answer to the Complaint.  It is necessary to respond to the Complaint within twenty (20) to thirty (30) days. You should always submit an Answer, whether or not you can pay the bank; otherwise a default judgment will be entered against you.

Unfortunately, most banks are not helpful until after a homeowner has defaulted on their mortgage payment.  In addition, most banking institutions will not negotiate with you or apply partial payment to your monthly bill. The bank will likely return a partial payment to you or hold the payment in a separate escrow account without applying it to your debt.  At Soleil, Onua & Galloway, we recommend that our clients call the bank and find out their policy on partial payments. If the bank is unwilling to assist you, you should save as much money as possible in a separate account. This savings account should allow you to submit a substantial down payment towards any missed payments when working out a modification or another workout option.

Yes!  If you are able to pay the full amount of arrears, in addition to costs and fees, you can stop a foreclosure on your home at any time prior to an auction sale.

There are several ways to stop a foreclosure sale of your home.  An attorney should be contacted to discuss these options.  See also Bankruptcy to Stop Foreclosures.

In several states, homeowners have the right of redemption, which allows a