13 Aug What to do when you are being foreclosed – Connecticut
It’s no secret that foreclosures have increased dramatically in the past few months with the collapse of the sub-prime market. Connecticut has placed ninth in the country with nearly a 125% increase over last year for the month of June. This follows previous increases of 66% and then 87% for April and May. What can you do when a foreclosure is filed against your home?
Once you are served with foreclosure papers, the clock is ticking. Everything you do is measured from the “Return Date”, a date printed on the Summons form as set by the mortgage company’s lawyer. The process of foreclosure is much faster now than in years past when a typical case could take a year or more. Now, a foreclosure in Connecticut can be complete in less than 2 months from the Return Date.
If you want to save your home, your choices are few. If you are dealing with the loss mitigation department of the mortgage company,keep an eye on that return date. If too much time is passing, you may need to pursue other avenues. There is a process to reinstate your mortgage in the foreclosure court, but you must make the application immediately. Failing a reinstatement in the foreclosure court, your only other choice is a Chapter 13 Bankruptcy.
If you do not want to save your home, you can leave it to the mortgage company, but you have to be wary of a deficiency. A deficiency is the excess of your mortgage loans over the value of the house as set by the Court.
Read on to Part 2 – Deficiencies, Part 3 – Loss Mitigation, Part 4 – Court-ordered Reinstatement and finally Part 5 – Chapter 13.