A client was in foreclosure on a home that was underwater, owing more than the property was worth. The matter was already in active litigation when Tom filed a notice of appeal to challenge a court decision. After the appeal was filed, the lender reevaluated its position. The result was a loan modification that included a principal reduction, moving the client from negative equity to positive equity with a lower monthly payment.
The case started in a difficult posture: the borrower owed more than the home's market value, and a court ruling had gone against the borrower. Rather than treat the ruling as the end of the road, Tom appealed. The notice of appeal signaled that the lender would face continued litigation and potential delay. That changed the lender's calculus.
Once the appeal was on file, the lender became willing to negotiate. The parties reached an agreement that did more than temporarily modify the loan. The modification included a principal reduction that brought the debt below the property's value. The client went from facing foreclosure and negative equity to retaining the home with a lower balance and a manageable payment.
Why this matters: In foreclosure litigation, continuing to press the case, including through an appeal, can sometimes shift a lender's willingness to settle. Lenders weigh the cost and uncertainty of further litigation against the benefit of a negotiated resolution. That does not mean every appeal produces a principal reduction. It does mean that giving up too early can remove the leverage that makes a better deal possible. Every case turns on its own facts, its own timeline, and the specific lender involved.
Prior results do not guarantee a similar outcome. Every case is different. If you are in foreclosure and want to discuss your options, Thomas A. Sirianni, Esq. answers his own phone. Call (516) 314-1343 or visit thomassirianniesq.com. The office is located at 1 Pine Valley Road, Upper Brookville, NY in Nassau County.
Attorney Advertising. Prior results do not guarantee a similar outcome. Every case is different. Each case is evaluated on its individual facts and circumstances. The information on this page does not constitute legal advice and does not establish an attorney-client relationship.
Have a case you'd like Tom to look at?
Thomas A. Sirianni, Esq. answers his own phone. Call (516) 314-1343. Office located at 1 Pine Valley Road, Upper Brookville, NY.