Connecticut Foreclosures
Connecticut is Judicial Foreclosure state, which means that a bank cannot foreclose on your home without going through the Court. The homeowner is typically notified of the Lenders intent to foreclose after receiving one or more letters that demand payment of all outstanding mortgage payments, penalties and interest due in order to avoid the initiation of foreclosure proceedings. If you cannot pay the amount demanded, typically within thirty days of the demand, the Lender may file a Complaint, which is the start of the foreclosure case in Court. If you own and occupy your one to four family home in the state of Connecticut, the Lender must notify you of your right to participate in the Foreclosure Mediation program by providing a Foreclosure Mediation Certificate to you with the Complaint. The homeowner has 15 days to file an Appearance and The Certificate of Foreclosure with the Court to be considered for the important Foreclosure Mediation program.
Thus, it is critical you work with an attorney as soon as you receive the Complaint and Foreclosure Mediation Certificate. The Bernard Law Group, will file the Appearance, Answer, Special Defenses and the Foreclosure Mediation Certificate and will work to defend against foreclosure of your home in litigation or under Connecticut’s Foreclosure Mediation Program.
Foreclosure is tough, but legal help can lead to options like defense, modification, short sale, and mediation for success.
Defending Against a Foreclosure Action – Mediation
Possible outcomes in Mediation include a modification of the mortgage, a short-sale, or returning the deed of the home to the bank in lieu of foreclosure. The Foreclosure Mediation process is supervised by a Court Attorney who oversees the negotiations between the homeowner and the Lender. This is a critical process can take up to seven months or more. The law prevents the Lender from “dual tracking” – which is the practice of engaging in foreclosure mediation and foreclosure litigation at the same time. However, this does not mean that the threat of foreclosure is extinguished. Homeowners must meet several timeline requirements, submit several documents, forms, financial records and other information required by the lender during the mediation proceedings, to ensure that they are first approved for, and remain in the Foreclosure Mediation program. The Bernard Law Group has successfully represented clients in meeting the important time and document requirements, and negotiating with the mortgage lender to achieve the homeowner’s desired outcome, including avoiding foreclosure and remaining in the home.
Defending Against A Foreclosure Action – Litigation
A foreclosure proceeding can be a stressful and confusing time. If a homeowner and Lender cannot negotiate terms to avoid or resolve the foreclosure during the Mediation process available to homeowners in Connecticut, the Lender must go to Court to convince the judge why the Lender should be allowed to remove you from your one to four-family owner occupied home. The homeowner has the right to provide evidence and information to persuade a judge why it would not be equitable or fair to remove you from your home. The Bernard Law Group, will file the Appearance, Answer, Special Defenses and the Foreclosure Mediation Certificate and will work to defend against foreclosure of your home.
Conducting a Short Sale to Avoid Foreclosure
Even after a judgment of foreclosure is granted by the court, there may be opportunities for ongoing negotiations with the Lender, or potential improvements in your financial circumstances that can persuade the Court to grant an extension of time to avoid or mitigate foreclosure. The attorneys at The Bernard Law Group will aggressively pursue any appropriate option help you to achieve the objective you seek, whether that means remaining in the home or conducting a short sale.
A short sale is a process by which you and your lender agree to a sale of your home for less than the outstanding balance on your mortgage, particularly if your home is “underwater” and your outstanding mortgage is greater than the value of the home. For example, if you owe $275,000 on your mortgage, but your home’s value is $250,000, in a short sale your bank would agree to accept the full proceeds of the $250,000 as payment in full on your mortgage and you would not owe the remaining $25,000. While you will of course have to give up your home through the sale, the benefit of a short sale is that you avoid the hassle that a foreclosure can cause. And perhaps even more importantly, the lender may agree not to pursue a deficiency judgment for the remaining $25,000 against you. In addition, The Mortgage Forgiveness Debt Relief Act provides relief from taxes on the amount of the forgiven debt.
Banks are not required to accept your offer of a short sale, but at The Bernard Law Group we have extensive experience working with mortgage lenders and we will negotiate on your behalf and work to achieve a short sale. When a short sale is approved we will create and finalize the necessary paperwork to complete the short sale and avoid foreclosure.
Obtaining a Modification of Your Loan
Regardless of whether you have received a Pre-Foreclosure Notice or a Complaint of Foreclosure, the attorneys at The Bernard Law Group will represent you or during the Foreclosure Mediation Program to negotiate a Modification of Mortgage with your Mortgage Lender. If applicable, we will also review and rebut the Lender’s Federal Loss Mitigation Programs Affidavit used in denial of modification any under government loan modification program and clarify why your loan is eligible for such loss mitigation programs.
Need Assistance With Avoiding Foreclosure on Your Home?
At The Bernard Law Group, we are committed to doing everything we can to help our clients avoid the negative consequences of foreclosure. Call us today to see how we can help you.