If you are facing foreclosure in Connecticut, you may have legal defenses you can use to challenge your lender’s action. With legal guidance, such defenses may help you keep your home.
What are some of the most common defenses that can help you fight foreclosure?
Failure to follow proper foreclosure procedures
Connecticut law requires strict adherence to specific procedures in the foreclosure process. If the lender fails to follow these procedures—such as not properly notifying the homeowner of the foreclosure or failing to provide the necessary documents—the foreclosure may be invalid.
Loan modification or forbearance agreement
If you and your lender have reached a loan modification or forbearance agreement, but the lender proceeds with foreclosure anyway, this may be grounds for defense. For example, if you’ve been making the required payments under a modified loan agreement or have a temporary forbearance arrangement, your lender may not have the right to foreclose while the agreement is in effect.
Improper or inaccurate accounting
Sometimes, lenders make errors in calculating how much is owed, such as misapplying payments or charging incorrect fees. If you can demonstrate that the lender has inaccurately accounted for your payments, you may be able to use this as a defense to prevent or delay foreclosure.
Violation of consumer protection laws
Connecticut law, along with federal regulations, provides protections for homeowners against deceptive practices by lenders. If your lender engaged in predatory lending, failed to provide required disclosures or violated other consumer protection laws, you may be able to challenge the foreclosure on these grounds.
Unlawful mortgage terms
If the terms of your mortgage were unfair or the loan was made based on misleading information, such issues could be used as a defense. For example, an adjustable-rate mortgage that dramatically increases your payments without proper disclosure could form the basis of a legal challenge.
It is important to note that not every defense will apply in every case and each situation is unique. If you are facing foreclosure, seeking legal guidance can help you explore these defenses and may help you protect your home.