There is really nothing you can do, officially speaking, until you’re served with papers by a marshal. Once that happens, you can file for foreclosure mediation through the court system.
That said, most banks don’t want to take title to the property, because they’re not in the business of owning, maintaining, insuring or selling property; they really try to work with people and as long as you have a hardship, they will so their best.
What Are Some Reasons That People Find Themselves Facing Foreclosure?
One big reason people often find themselves facing foreclosure is because of a health issue, or that one or both spouses find themselves unemployed or underemployed, although another big reason is divorce. When you go through a divorce, you most likely are living on the financial brink, and now you have to maintain two separate households. Other reasons why people end up in that position are due to a death in the family, especially one of the owners; most people don’t just stop paying; it usually takes a hardship.
At What Point Is It In My Best Interest to Obtain an Attorney?
You should retain an attorney the second the marshal leaves the paper at your steps that starts the foreclosure; they can help you try for a mortgage modification on your own. Also, in Connecticut, we don’t have non-judicial foreclosures; everything has to be done through the court, which means an attorney is crucial.
Judicial foreclosures are better because you have more protection; everything is overseen by a judge, which is better than what happens in a non-judicial foreclosure, which forces you to rely on the lender’s lawyer to do everything correctly and to protect your rights.
Do You See People Ever Owning a Home Again After a Foreclosure?
That happens a lot; your life is not over if you’ve lost your home in foreclosure; besides the alternatives to help you keep your house, you can also do a deed in lieu of foreclosure if you have no other liens on the property other than the mortgage. You just pay to transfer title to the bank in lieu of foreclosure. You can do a short sale, and if your house is worth less than you owe, the bank agrees to take the net is in the sale and you walk away owing them nothing.
Can a Lender’s Failure to Comply Possibly Affect My Case?
Lenders have been fined and prosecuted when they had a lot of difficulties following the procedures for a foreclosure. They have settled with the United States government or with states for violations of federal and state law; unfortunately, because they have such high volume, they don’t always do what they are supposed to do; if you’re looking for a principal reduction and there was one lender that entered into a settlement with the government, because of penalty they agreed to forgive so much in principal in billions so it could really benefit you for their prior mistakes.
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