Foreclosure Lawyer CT
Foreclosure is the legal process that happens when a borrower fails to make timely payments on a home loan, and the lender takes possession of the house as collateral. Generally, the borrower is given a specific timeframe to bring their loan up-to-date and prevent foreclosure. However, if the borrower cannot do so, the lender may proceed with a public auction of the property to pay off the outstanding debt. Foreclosure can have detrimental consequences for both the lender and the borrower. The lender may suffer financial losses if the sale of the foreclosed property does not fully cover the outstanding debt, and the borrower loses their home and damages their credit. If you’re facing foreclosure, consider speaking to a foreclosure lawyer in CT from The Law Offices of Ronald I. Chorches. Foreclosure can be a scary ordeal, and you don’t want to go through it alone.
Reasons to Hire a Foreclosure Lawyer in CT
When facing foreclosure, an experienced lawyer by your side provides many benefits. For example, your lawyer can inform you about a loan modification that involves revising the original loan terms, such as extending the loan length or lowering the interest rate. In addition, your lender may try to evict you from your home if you fall behind on payments. They may use illegal methods to force you out. However, with a foreclosure lawyer, you can avoid such unlawful practices. Your lawyer can advise you on your rights and the time you have to stay in your home.
Since foreclosure lawyers have extensive knowledge of foreclosure laws, procedures, and legal strategies that can help protect your rights, they can provide you with personalized advice depending on your specific situation. Moreover, if your case goes to court, a foreclosure lawyer will be by your side to represent and defend you. Above all, your lawyer will give you peace of mind and reduce the stress and anxiety associated with such a challenging process.
How To Stay In Your Home Even if You Face Foreclosure
A foreclosure lawyer can help you minimize your loss of assets, and you may even be able to remain in your home. The threat of foreclosure does not have to render you homeless. You can try the following with the aid of the Law Offices of Ronald I. Chorches before you hand your house keys over for good.
Communicate With Your Lender
If you’re struggling with finances, reaching out to your mortgage lender is crucial, even if it seems daunting. While your lender may not be willing to adjust your monthly payment, they may offer resources and options to help you become current on your mortgage. These options are not typically readily available on the lender’s general information brochures or website.
However, communicating with your mortgage lender can be challenging, as they may not be forthcoming with their customers. This is especially true if you’re unsure about what questions to ask. Engaging a foreclosure lawyer as your legal representative and mediator can help keep lines of communication open between you and your mortgage lender.
Pay Partially When Possible
If you’ve fallen behind on your mortgage payments by a month or two, it’s not necessary to pay off the entire overdue amount at once. Instead, your foreclosure lawyer may suggest paying as much of the outstanding balance as possible. Additionally, your lawyer may work with your lender to create a special catch-up plan that would make the payments more feasible and manageable for you.
Seek Out Little Known Resources
Your lender may not be informed about the various resources that are available to help you save your home from foreclosure. For example, your foreclosure lawyer may assist you in identifying grants for which you are eligible. Additionally, if your financial situation reflects a hardship, you have the right to request a mortgage modification from your lender. If you have a fixed income or are facing a medical emergency, you may also be eligible for subsidized mortgage payments or a deferment.
What To Expect During the Foreclosure Process
Typically, your mortgage payment is due on the first of the month. If you fail to make a payment within 30 days, your lender may contact you with a reminder letter or phone call. Furthermore, your bank may add a late fee. Usually, lenders refrain from taking collection actions during the initial 90-day period of delinquency. We usually recommend you make partial payments during this period if possible. Following the 90-day period, your bank may send a demand letter, giving you 30 days to bring the past three months’ payments up-to-date to avoid collection proceedings.
Notice of Default
After four months of missed payments, your bank usually begins foreclosure proceedings. The first step in this process is to send you a Notice of Default. This official letter gives you an additional 30 days to get your loan caught up. A foreclosure lawyer can ensure your lender adheres to the federal regulations during this process.
Notice of Sale
When you are more than 120 days behind on payments to your lender, they can file paperwork to begin the foreclosure process. The lender’s attorney schedules the home for auction and files the notice of sale with the county. The auctioneer may organize the deal in as little as two to three months. However, a foreclosure lawyer may still be able to work with your lender to make payment arrangements before the auction.
Transfer of Ownership
The lender establishes the beginning price for the auction of your house. This amount is the minimum they hope to get from the sale, and the price should cover the loan, past due fees and any other taxes or liens owed to the bank. During the auction, the house goes to the highest bidder. If your home sells for more than the amount you owe the bank, a lawyer from the Law Offices of Ronald I. Chorches may be able to get the overages returned to you. If your home doesn’t sell at the auction, it becomes the property of the bank. The lender then lists the house for sale to recoup the money lost on your loan and legal fees.
When the home is sold at auction or taken over by the bank, you must leave the property. You may get a few days to remove your belongings. After that, the authorities will force you to leave.
Fighting a Foreclosure
Fighting foreclosure is a necessary action to take if facing this unfortunate occurrence. There are many different ways that a foreclosure can be fought and each may save your home or property. One of the most common ways that is recommended is to file for bankruptcy. Filing for bankruptcy can help to provide some financial relief for those who are struggling to pay off debts.
The type of bankruptcy that is recommended to file for in this case is Chapter 13. Chapter 13 is generally filed by individuals and puts them on a repayment plan to pay back creditors over a 3 to 5-year period. What makes this favorable for foreclosure is that this bankruptcy type doesn’t require the liquidation of assets like in a Chapter 7 bankruptcy. Chapter 7 is also a typically individual filed bankruptcy type but requires the liquidation of assets that many times may require the selling of a home or property.
Our experienced team has helped numerous clients fight foreclosure and keep their homes. For example, special provisions may exist to prevent foreclosure for a specified period if you’re an active-duty military member. We’ll carefully review your case with you and help you better understand why and how the foreclosure process has arisen.
Scheduling a Consultation with a Foreclosure Lawyer
It’s crucial to promptly consult with a foreclosure lawyer if your mortgage lender is threatening foreclosure. In your first meeting, provide your lawyer with information about your foreclosure, such as the extent of your delinquency in payments. You should also ask your lawyer important questions, such as whether you have a viable defense against foreclosure and what the expected duration of the process will be. The process of foreclosure can be overwhelming and intimidating, and it’s crucial to have the support and guidance of an experienced legal professional by your side. Please contact us today to schedule your consultation.
We serve clients across Connecticut, including Bridgeport, Waterbury, and New Haven.