Many people buy homes in Connecticut with the intention of staying in the house for many years. Usually people receive the funding to buy the homes by obtaining a mortgage from a bank. At the time of the purchase people probably have a good understanding of their financial situation and know what they can afford each month. However, people cannot predict the future and mortgages can be based on a 30 year repayment plan. During that time a lot can happen.
Sometimes people may lose jobs or have medical issues that prevent them from working and force them to incur medical debt. Sometimes people’s children will need expensive medical treatment or other expenses. These situations can make it difficult for people to continue paying their mortgage. If they fall behind in payments, the bank can initiate foreclosure proceedings against the homeowner and eventually take the property back.
This can be completely devastating for families who already are probably dealing with significant hardships. While initially it may not seem like there is much people can do, there are potential defenses to foreclosure.
One is by analyzing the chain of title of the mortgage. Over time mortgages are bought and sold by various banks and financial institutions. Each time this occurs, the companies are required to record the transfer, but there are many times when that may not occur as mortgages are bought and sold routinely. If there is a transaction that was not recorded correctly it could create a defect and prohibit the current owner of the mortgage from foreclosing.
There are many people in Connecticut who are in tough financial positions and may be facing a foreclosure action. People who find themselves in this unfortunate position may have defenses though and could potentially save their home. Consulting with an experienced attorney may be beneficial as foreclosure defense can be a complicated process.