real property law Tag

15 Aug What To Do When You are being Foreclosed – Loss Mitigation

You're facing foreclosure and you want to save your home. Can you work with your mortgage lender to get caught up with your payments? Many mortgage lenders claim to have loss mitigation departments to deal with defaults in mortgage loans to avoid foreclosure. Be aware of the common traps. Loss mitigation or workouts can take several forms. In some cases, the cleanest workout for a default is an outright refinance of the mortgage loan. This is an expensive alternative because it means conducting a full closing on a new loan with all of the attendant delays and costs (title work, recordings fees and the like). With the tightening of the sub-prime mortgage market, the criteria now require a higher credit score and clean title to the property. Don't look for any cash out that closing, though. Also be wary of any other company offering loss mitigation or workouts. They can be scams.
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14 Aug What To Do When You are being Foreclosed – Deficiencies

Just because your house has been foreclosed, does not mean that you are free from the mortgage debt or other obligations of the home. You can be held liable for the difference between the market value of the house and the balance of the loan. When a Court enters a foreclosure judgment in Connecticut, a determination must be made on the value of the property. If your home is worth more than all of the liens on it, it will be auctioned. But if the home is worth less, the Court will order a "Strict Foreclosure". In such a case, the Judge will set a deadline (the "Law Day") for you to pay the loan in full. If you do not pay in full, your ownership in the property will be cancelled. However, your liability does not end there.
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