2885 Main Street
Stratford, CT 06614
203.378.9595
Share

Attorney Ben Proto - The Musings of a Mad Lawyer

Wednesday, June 6, 2018

Connecticut Foreclosure Alternatives

Foreclosure is a process by which a lender takes steps to recover the balance of a loan through the forced sale of the asset securing the loan. However, there are several alternatives to foreclosure that those behind on their mortgage payments may want to explore, including:

Short Sale

A short sale is a sale of real estate in which the proceeds fall short of the debts owed. This means that the holder of a mortgage, typically a bank, agrees to accept less than the total amount owed in order to reclaim at least a portion of the money owed. Short sales often occur when a property's value decreases to the point that it has been mortgaged beyond its market value.

Deed in Lieu of Foreclosure

This process entails the owner of the property returning it to the bank that holds the mortgage rather than waiting for the foreclosure process to begin. This option is appropriate when the amount of money owed is so much higher than the value of the property that it is considered impossible to find a buyer to make an acceptable short sale offer. Homeowners who choose this option often do so to avoid the long, complicated foreclosure process.

Loan Modification

An additional foreclosure alternative is loan modification, which is a negotiated plan with the lender to modify the mortgage so that the homeowner can stay in his or her home and make lower payments. When available, loan modification is an excellent option because it both prevents foreclosure and allows the lender to receive regular payments on the debt. Homeowners and banks typically prefer loan modification to foreclosure. During the loan modification process, which is also known as mortgage modification and loan restructure, the homeowner and lender work together in order to reach a compromise. During such negotiations, a loan's interest rate, length, and monthly payments are typically modified. When a loan modification is possible, it is far preferable to foreclosure for both parties since it permits the working mortgage arrangement to continue and the borrower to remain in the home. Therefore, debtors and their attorneys frequently pursue this method in lieu of other methods unless it appears that modification isn't possible.

Connecticut Foreclosure Attorney

If you are currently having trouble meeting your monthly mortgage obligations and believe that you may be at risk of foreclosure, please contact an experienced Connecticut real estate attorney to discuss your situation. An experienced Connecticut foreclosure attorney will ensure that you understand your rights as a borrower while keeping you apprised of all available legal options. At the Law Office of Benjamin S. Proto, we are fully prepared to defend you against foreclosure action in a court of law. In addition, there are a number of methods available that can delay or prevent the foreclosure process. Please contact the Law Office of Benjamin S. Proto for a free consultation.





© 2018 Law Office of Benjamin S. Proto, Jr. | Disclaimer
2885 Main Street, Stratford, CT 06614
| Phone: 203.378.9595

Land Use & Zoning | Business Law Services | Residential Real Estate | Commercial Real Estate | Administrative Law | Foreclosures | Election Law | Appellate Law | Real Estate Matters | Commercial Lease Negotiation | Real Estate Closings

FacebookLinked-In Company

Law Firm Website Design by
Zola Creative