Preventing Home Foreclosure
We provide legal assistance to people in Hartford and New Haven who are facing foreclosure of their homes. If you need to prevent a legal foreclosure action against you, read on to find out how we can help.
Foreclosure is something everyone wants to avoid. Most people will do anything they can to save their homes. If you are dealing with insurmountable debt and considering bankruptcy or other options for stopping foreclosure on your home, it is important to talk with an attorney who will help you take advantage of the options available to you.
- Mortgage Loan Modification
- Foreclosure Mediation Process
- Waiting Time To Buy After Foreclosure
- Keeping Appliances During Foreclosure
- Selling Your Home Before Foreclosure
At The Law Offices of Ronald I. Chorches, our bankruptcy attorneys have decades of experience handling bankruptcy and providing other debt-relief solutions to help clients prevent house foreclosures in Hartford, Connecticut. With a shared dedication to helping clients find a fresh financial start, we will work with you personally to discuss your options and help you find the best solution for your case.
Will Bankruptcy Help Me Save My Home?
For most people facing serious debt problems and considering bankruptcy, the first and most pressing question is, “will bankruptcy save my home?”Indeed, your house and land most likely represent your most valuable assets, besides being your home. It is critical to work with an experienced lawyer who can help you through the bankruptcy process or find an alternative to bankruptcy that can help you save your home.
The Emotional Toll of Facing Foreclosure
People often think of foreclosure in strictly financial terms. What does it mean for your credit score? How will it impact your ability to get a loan in the future? These are important questions, but some experts point out that it’s more than money. There is also an emotional side. There’s a mental side. They claim that losing a home can be traumatic in the same way as losing a loved one or getting divorced.
For instance, a person may have family memories or even childhood memories in the home. Maybe he or she grew up there and bought the house from his or her parents when they moved. Losing it to foreclosure means the person can never again go back to these places that are so ingrained in his or her life.
People often have a lot of pride in their homes. They may even view them as an indicator of success. Losing the house can make it feel like the person’s entire life has been a failure. This is clearly going to have more of an impact than just needing a new place to live. On top of that, there’s the aspect of community. Neighbors have become friends. Family members may live nearby. People are connected to more than just their houses, and that’s also lost in foreclosure.
Powerful Tools For Stopping Foreclosure
If handled properly, bankruptcy is one of the most powerful tools available for stopping foreclosure and saving your home. In addition to the automatic stay, which prevents lenders and their agents from engaging in any collections activities against you for the duration of the bankruptcy process, bankruptcy also provides a long-term solution to saving your home.
In Chapter 7 bankruptcy, you can keep up to $75,000 in equity. By eliminating most of your other consumer debt, we could put you in a position where you could continue making your mortgage payments and be able to keep your home. Similarly, in a Chapter 13 bankruptcy, we could help you get onto a three-year or five-year payment plan that will be more manageable for you, allowing you to keep your home.
Chapter 7 Options
Chapter 7 bankruptcy eliminates debt attached to the home, such as mortgages. It also forgives tax liabilities for losses that the lender takes on due to the homeowner’s default. For this to apply, the owner must have used loans given by the lender for home payments or improvements.
Note that it does not guarantee that you will keep your home and the court may force you to give up some of your more valuable possessions in order to pay your debt. You also may be ineligible for some of these benefits due to your income levels.
Chapter 13 Options
Declaring Chapter 13 bankruptcy lets you set up a payment plan that allows you to pay off your debt. But, keep in mind that you will need enough money to pay off both your debt and regular mortgage payments. Chapter 13 bankruptcy can remove second or third mortgage payments as well.
Keep in mind that the lender can file a motion to lift the automatic stay and ask the bankruptcy court to proceed with the sale. If they are successful, then you may not get as much time as you could have. You may still have approximately two months or more though. It depends on when the lender begins the process. This is why timing is important, and once you discover you may face foreclosure, to get in touch with our office promptly.
Early Intervention Is Key
Helping clients through the bankruptcy process as a means to stopping foreclosure usually requires early intervention. In some cases, a foreclosure is imminent. If this is your situation, contact us quickly. We can immediately begin negotiations with your mortgage lender to modify your loan and find other bankruptcy alternatives that could help you save your home.
Although bankruptcy is sometimes a scary prospect, it is much better than foreclosure. Foreclosure is a permanent stain on your credit and you lose your home. Bankruptcy allows you to get a fresh start. Contact our office so we can take you through your options and may help save your home.
Exemptions Can Also Help
There are also generous exemptions that allow you to shield a significant amount of equity in your home. Exemptions are tools that can be used to help you keep your home.
The federal government allows you to exempt the equity in your primary residence for up to $21,625, or double that for a married couple. You can claim either the federal or the state exemption, and under Connecticut exemptions you can protect up to:
- $75,000 of the equity in your home
- $150,000 if you are filing a joint bankruptcy with your spouse
In some cases, this may include looking at Chapter 13 as a better bankruptcy option particularly if you have significant equity in your home and a good likelihood of being able to pay off your debts in a three to five-year time frame.
How Long Does Foreclosure Take?
Foreclosures often take several months and thus it gives homeowners time to assess their options and make the best decision possible. It will also postpone the foreclosure until the court finalizes the bankruptcy.
Alternatives For Saving Your Home
An impending foreclosure can be stressful and scary. And, often, it seems like the only way out of debt. But, there are other methods to pay off your dues. Bankruptcy may be an option not only to start fresh but also to save your home. Through mediation or other forms of negotiation you can work out mortgage modifications that could include lower payments, lower interest rates and even a lowered principal.
- Forbearance agreement: a forbearance agreement will allow you to work out a plan with your lender that allows you to catch up on late mortgage payments over a one-year period of time. It may require you to pay back a portion of what you owe upfront.
- Short sales are used when you owe more than the current value of the home. When considering this option, it is important to work with an attorney to ensure that you do not receive a deficiency judgment.
Get In Touch With Us
If you’re facing significant mortgage debt or imminent home foreclosure, we will work with you to find a solution and help you find a fresh financial start. Call us today at 860-563-3955 for more information and to get the process going. You can also schedule your free consultation on our consultation page.