There are many ways for people facing foreclosure to protect their homeownership. Some people file for bankruptcy, which can delay the foreclosure process. Others might negotiate with their lenders to obtain modifications that make their mortgages more sustainable.
People facing foreclosure might go to court to defend against the formal foreclosure process. An attorney can potentially help those facing imminent foreclosure challenge the legality of a lender’s attempt to obtain ownership of a property through legal procedures.
Mistakes can derail foreclosure attempts
Federal regulations and state laws both impose clear restrictions on the foreclosure process. Homeowners must miss enough payments for foreclosure to be a valid legal option. The lender must provide formal notice in writing before the foreclosure process begins.
In some cases, lenders may have failed to comply with communication requirements, which could force them to restart the foreclosure process. Other times, accounting mistakes, such as failing to credit an account, might mean that the homeowner is not currently at risk of foreclosure because they do not have enough outstanding missed payments.
Connecticut offers various systems to reduce the risk of foreclosure, including a foreclosure mediation program. In some cases, sitting down with a lender in a confidential mediation setting can help homeowners avoid foreclosure. Homeowners may need help determining what approach is most likely to help them protect their homes and accumulated equity.
Reviewing all communication with the lender with an attorney can help homeowners explore different solutions for defending against foreclosure. If lenders make mistakes regarding paperwork or financial records, those technical areas can influence the best strategy for fighting the foreclosure process.