Bankruptcy is an effective means of preventing foreclosure, so long as the case is filed before title to the collateral or home is legally transferred. Many people choose to file In Chapter 13, to save their homes. Filing Chapter 13 allows you to pay back the amount you are behind (your Mortgage Arrearage) over three to five years. Don’t fall for the offers of large payments over a short period that the bank may offer -especially if you don’t think you can do it. Consider small payments over a long period of time through a Chapter 13 bankruptcy instead.

The best time to seek a modification is before foreclosure even starts. Under the law, most mortgage companies have to attempt to work with you to resolve your payment problems before they start a case. This is also a good time to try to work on a modification because you probably have not missed that many payments and attorney fees have not started. The mortgage company will add on fees for their attorneys once the foreclosure case is started and reported to the credit rating companies.

If you need help, we offer the opportunity to hire us to work with your mortgage company before a foreclosure begins. We have the resources and experience to help you file for a mortgage modification. If you are sued for foreclosure, we can also help you with the court mediation program if desired. You can also do either of these things on your won.

Even after foreclosures are filed in Connecticut courts, they can take a long period of time. If you are in a one-to four-family house and it is your primary home, you qualify for foreclosure mediation even if you have already applied for, tried to obtain, or been denied a mortgage modification on your own. Homeowners are often denied modifications for the wrong reasons.

Sometimes mortgage companies just make mistakes. If you think the bank has made a mistake, contact an attorney to carefully review your circumstances and see if the mortgage company properly verified your income and expenses. If they did not, you may be able to appeal a denial of a modification. You may have a very short period to appeal, so read all correspondence from your bank very carefully.

If modification is not possible, some mortgage companies will be willing to consider you for a “short sale” or a “deed-in-lieu of foreclosure”. These options are sometimes called cash-for-keys deals and they are an important option for any person facing foreclosure. With the help of Beckett Law, LLC, we can help you negotiate money for moving expenses if you no longer want to keep your home. Cash for Keys is usually limited to those situations where there are no judgment liens and no 2nd mortgages.