People who find themselves in the center of mortgage difficulties often don’t know how to properly stop foreclosure. However, foreclosure does not have to be inevitable. If you live in the state of Connecticut and you are struggling against foreclosure, then this blog is for you.
The most important thing to do is to get educated about all your options and what choices best fit your needs to take proactive steps. Many people hide from their lenders. But, this only makes things worse. The first and best step in stopping foreclosure is to be absolutely transparent about your problem and be clear about your suggested solutions, letting them know exactly what your situation is. You can start by trying for a temporary suspension of payments. The most important thing to do is to contact an experienced foreclosure defense attorney, who knows the proven necessary steps to help stop foreclosure.
You Have Options
Once you’ve engaged a specialized foreclosure relief attorney or bankruptcy attorney, they will explain your options to you. There are three main strategies to arrest any drive towards foreclosure:
1. Chapter 13 Bankruptcy
This is the strongest approach at the moment. Under Chapter 13 bankruptcy, you can renegotiate your payments to your creditors to make them more affordable to you and to eliminate unsecured debt. Eliminating or reducing unsecured credit card debt makes your mortgage far more affordable. Chapter 13 halts foreclosure and gives you the right to repay your back balance over 3 to 5 years without any bank approval necessary.
2. Court Mediation
The state of Connecticut has instituted mandatory foreclosure mediation. You need professional legal representation to make the most of this process, which can be very effective if handled properly. Mediation with banks and their attorneys without your own special legal representation causes more lost homes in mediation. Mediation success demands your own legal representation.
3. Government Programs
Ultimately, the best way out of foreclosure is with the experienced help of a specialized foreclosure relief attorney. Be careful of promises of government assistance and foreclosure prevention programs. The government and banks have done very little to stem the tide of Connecticut foreclosures. Don’t rely on the mercy of banks or the government to save your family home.
Do you need to stop foreclosure? Contact the Law Offices of Neil Crane, LLC. We can help you!
People who are considering filing for bankruptcy in order to gain credit card debt relief or help with other kinds of deep indebtedness, often ask what effect this action will have on their credit score. Filing for bankruptcy seems like such a drastic and extreme act that it appears to many that they will never recover from it. We, however, can assure you that this is not the case.
It depends on your starting point
Filing for bankruptcy will be reported on your credit report, but the effect on your credit score will depend on your credit score before filing, and how you rebuild your credit score through sound post-bankruptcy and proven practices for credit restoration. Most Connecticut residents seeking debt relief are great payers with falling credit scores due to their extreme debt-to-income ratio and as reported in their FICO scores as utilization. High credit scores are only available to those who have low debt loads.
People file bankruptcy for debt relief, but it actually improves credit scores.
The Best Way to Rebuild Your Credit
Here’s the hidden ‘beauty’ of bankruptcy. While it’s not good that you find yourself in a situation where you have to file for bankruptcy, it could actually be your cleanest, easiest way out of your difficulties. If you don’t file for bankruptcy and your unpaid debts continue to accumulate, this will be far more damaging to your credit score than bankruptcy is. Additionally, your debt-to-income level will continue to ruin your credit score.
On the contrary, bankruptcy, while often delivering a short-term knock to your credit, not only enables you to reduce your debt load and get your finances under control, but it also immediately starts the process of rebuilding your credit. If you come to the point where bankruptcy is your best option to obtain financial recovery, rest assured that the damage to your credit will be temporary, provided that you take control of your finances. In addition to solving your financial problems, bankruptcy is an effective tool for revitalizing your credit and re-establishing a high credit score.
If you are looking for credit card debt relief, contact the Law Offices of Neil Crane, LLC, the most experienced debt relief attorneys in Connecticut.
If you reach a point where you are struggling to meet your mortgage payments, you can get the help of a foreclosure defense attorney, which means you can stop struggling! Although your mortgage repayment plans may seem to be set in stone, you are well within your right to renegotiate it if you find yourself in financial difficulty.
Modifying a Loan
If you find that your payments are unaffordable, there are a number of steps you need to follow.
- First of all, keep in touch with your creditor. Do not avoid their calls, letters or emails. While it is in their best interest to avoid foreclosure. You need to present a good plan to solve your problem with them. Be transparent about your situation and discuss your options. The lender may agree to temporarily suspend payments. This is a short-term solution, however, and if you need something more permanent, then you should consider modifying the loan.
- Secondly, if you do decide to modify the loan, read the terms of your modification carefully – is it helpful? Is it fair to you?
- Thirdly, you must be able to present evidence to show that you have hit upon hard times financially and cannot service the debt as it stands, but you have a good chance to pay the modified loan requested.
- In the fourth step, get the help of an experienced and specialized foreclosure defense attorney. They will know the correct way to maximize your chances for success.
- Step Five is the application itself. You or your lawyer will contact the lender’s loss and mitigation department, and your eligibility will be assessed. You will then receive the application to complete and, once this submitted, along with your motivation letter, pay stubs, bank statements W-2 forms, and tax returns, you should receive a response within a few weeks to a month. The application should be organized and complete with a hardship letter and a new well-developed solution submitted with pay stubs, bank statements, profit & loss records for the self-employed, tax returns, and other backup documents.
It’s always best to enlist the help of a consumer and foreclosure defense attorney to make your loan modification application smoother and easier. Contact the Law Offices of Neil Crane, LLC, the renowned Connecticut debt relief, bankruptcy, tax and foreclosure defense attorney.
Most people see bankruptcy as a terminal sign of financial ruin. With a Chapter 13 bankruptcy lawyer, however, Chapter 13 can be a comprehensive start to a new reorganized financial life. Chapter 13 of the Federal Bankruptcy Code provides protections for individuals seeking to reorganize all different types of debt through a customized plan for the payment of important debts, and the reduction or elimination of other less important debts, without any loss of assets.
How Does It Work?
With Chapter 13, you are given the opportunity to formulate a plan to repay your debt from personal income from any source. With the help of a Chapter 13 attorney, the petitioner submits a reorganization plan that protects assets against foreclosure or repossession and provides forgiveness or restructuring for other debts. The petitioner’s attorney creates a three to five year plan for reorganized past debt in accordance with each family’s current income and expenses.
Who Is Eligible for Chapter 13?
Chapter 13 is only for individuals, not for businesses, but the individual can be self-employed, a business owner, or an employee.
How Does the Filing Process Work?
Applicants should first secure a Chapter 13 lawyer, who will review and submit some of the following documents:
- A list of creditors,
- Disclosure of the amount and sources of income,
- A list of property and assets,
- A breakdown of the applicant’s living expenses, and
- Tax information, such as tax returns, statements, and the like.
After filing, your Chapter 13 attorney submits a repayment plan that you have reviewed and approved before your case is filed. The Chapter 13 plan calls for the full or partial repayment of an individual’s debt in order of importance through a single monthly payment after paying for regular monthly household living expenses. The debtor is not required to interact directly with his/her creditors; instead, any and all communications must and should be through an appointed mediator to handle all communications. Once a repayment plan is granted, the monthly payments are set, although acceleration of payments and early settlements are permitted. Chapter 13 bankruptcy is a rarer form of bankruptcy than Chapter 7, but it offers the most protections for individuals and homeowners of any form of bankruptcy law.
Do you think you may benefit from Chapter 13 bankruptcy? Do you live in Connecticut? Then contact the Law Offices of Neil Crane, LLC, we are highly experienced and successful Chapter 13 bankruptcy attorneys in CT.