What Happens When COVID-19 Mortgage Forbearance is Over?

What Happens When COVID-19 Mortgage Forbearance is Over?

If you are facing COVID-19-related financial hardships, many federally-backed and most non-federal mortgage lenders offer moratorium periods of temporary payment suspension or mortgage forbearance. If you have any type of decrease in income and you agree to this suspension of payment or mortgage forbearance, you will be allowed to miss payments temporarily.  However, it is absolutely critical that you fully understand the terms of this relief plan.

Remember: mortgage forbearance is not the same as mortgage debt forgiveness. Whatever payments are deferred by your mortgage lender will still need to be paid at some point, whether it be in a lump sum at the end of the moratorium period or mortgage forbearance, larger installments, or added to the end of your mortgage. By agreement, there will be no additional fees or interest tacked onto your federally-owned mortgage, but it may still accrue regular interest. If your mortgage is not owned by the government, contact your mortgage loan servicer and find out what it’s moratorium or mortgage forbearance terms are.

Do not forget that Banks are not on your side even in an uncertain, frightening time like this. They extend a helping hand of payment suspension but it is an extremely short-term solution that, overall, still does not allow you to save any money. If your back is against the wall because of COVID-19-caused difficulty or any overwhelming debt that has been building since even before this crisis, we can help!  Contact the Law Offices of Neil Crane, LLC to discuss your options of financial recovery and stability today.

Moratorium on Mortgage Payments: Then What?

Moratorium on Mortgage Payments: Then What?

As federal banks are mandated to allow for a moratorium of mortgage payments and private banks offer or decline individual moratorium requests based on cause, what is going to happen when these mortgage payments are due? The answer is unclear for government-mandated moratoriums and even less clear for moratorium requests granted by private banks.

All homeowners obviously need to know when they are going to be required to make up payments that they have been unable to make during the COVID-19 pandemic. Many homeowners and foreclosure defense lawyers do not see a clear and consistent directive to how these unpaid monthly obligations are going to be reorganized and incorporated to avoid a new wave of foreclosures. Having witnessed the disaster of the 2008 mortgage meltdown and bank bailouts, housebound homeowners both employed and unemployed wonder if they will be the next victim of a half-baked plan to assist homeowners that is, at best, uncoordinated and likely to lead to continued confusion with borrowers begging banks for merciful repayment terms. Good luck with that.

Not dissimilar to the national pandemic, homeowners do not feel there is clear guidance and are worried about their families’ homes. While there are no guarantees, there are suggestions.

  1. Do not accept the moratorium unless you absolutely need it. Stay safe and stay out of the morass.
  2. Any promise from a bank to a homeowner has been proven by the 2008 meltdown to be unenforceable against the bank.
  3. Banks have proven by the past economic meltdown to be often unconcerned and almost always unreliable. American homeowners have no true client relations with their banks. (Do you know who your banker is?)
  4. Document everything. Get names, get emails, send letters. Paper your file. In America, if it is not in writing, it does not exist.
  5. Save, save, save. Any portion of any amount you cannot pay and you can save can be the greatest means to save your home when payments recommence.
  6. Keep an eye on everything you receive. What does the statement look like? What is the promise from your bank? Finances go down like a stone when you are out of work. When you return, will your recovery meet with your bank’s requirements and prevent it from heading towards foreclosure?

If you are struggling to make mortgage payments, contact the Law Offices of Neil Crane, LLC and find long-lasting solutions. We offer a free initial consultation. Please do not hesitate to call us today at 203-230-2233, or complete our online contact form to discuss your questions and concerns with an experienced bankruptcy attorney.

Understanding Connecticut Chapter 13 Bankruptcy

At the Law Offices of Neil Crane, we are the largest provider of Chapter 13 relief in Connecticut. Many hardworking families facing debt problems and foreclosure are encouraged to count on government programs and help from their banks. While these programs may be well intended, they have been resounding failures. The universal delay and failure of these programs is national news. Don’t rely on false promises to resurrect your finances or save your home. With the help of an experienced lawyer from The Law Offices of Neil Crane, LLC, you can successfully address all your debt and mortgage problems in a full comprehensive Chapter 13 proceeding.

Chapter 13 bankruptcy will stop foreclosure, resolve all other types of family debt, and enable you to gain control of your finances, your future, and your life.

Contact a Connecticut Chapter 13 bankruptcy lawyer at The Law Offices of Neil Crane, LLC, to learn how we can help. From offices in Hamden, Bridgeport, Waterbury, Rocky Hill, and Ridgefield, we provide Chapter 13 bankruptcy services and other debt relief solutions to clients throughout Connecticut. Since 1983, our lawyers have been helping people throughout the state file for bankruptcy, stop creditor harassment, stop foreclosure, and put an end to debt. With our diligence and expertise, we have saved thousands of family homes just like yours.

Stop Foreclosure and Other Debt Problems

For many people facing financial challenges, a properly prepared Chapter 13 bankruptcy provides overall, global solutions. Chapter 13 bankruptcy is a federal court procedure for the deceleration and repayment of mortgage obligations along with the reduction or elimination of all other forms of debt. The filing of a Chapter 13 bankruptcy creates an immediate stop – known as an “automatic stay” – of the foreclosure process, halting a pending foreclosure and allowing for repayment of the past-due mortgage installments, and other debt obligations, over a three- to five-year time period. Chapter 13 bankruptcy will allow you to begin regularly scheduled monthly mortgage payments as if no previous default had ever occurred.

Benefits of Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a court-ordered procedure that enables individuals with any source of income to develop a plan to repay all or part of their debts in order of importance. Also called a “wage-earner’s plan,” Chapter 13 allows a debtor to keep their property, reduce or eliminate unimportant debts, and pay important debts over a three-to-five year period.

The benefits to filing Chapter 13 bankruptcy are plentiful in the hands of a knowledgeable, experienced attorney. At The Law Offices of Neil Crane, LLC, in Hamden, Connecticut, we use our knowledge and experience to provide customized Chapter 13 Plans that:

  • Immediately stopping foreclosure: Filing for Chapter 13 bankruptcy provides an immediate automatic stay against all creditor actions, including the immediate stoppage of a foreclosure action or sale.
  • Creating a plan for repayment: It creates a plan for the repayment of secured debt, including tax debt and defaulted mortgage obligations over three to five years. Payments are made pursuant to a court-approved Chapter 13 Plan created by our experienced counsel in accordance with Bankruptcy Code provisions and your specific household income.
  • Modification of your full obligation for the loan: Chapter 13 bankruptcy allows for deceleration of your mortgage debt so that your obligation to repay the entire loan at one time becomes a repayment plan for the arrearage over time. Regular monthly payments are resumed as of the date of your next scheduled monthly payment providing permanent solutions and saving homes.
  • An opportunity to sell your home instead of foreclosure: Chapter 13 bankruptcy may create an opportunity for the homeowner to voluntarily sell their home rather than lose it through a strict foreclosure or court-ordered judicial sale. This, of course, depends on your desire to keep the home, and your ability to pay.
  • Repayment of different types of loan obligations: Chapter 13 bankruptcy allows for repayment of other lien obligations such as delinquent taxes, water obligations, sewer obligations, state or federal taxes, and judgment lien obligations through a customized and affordable Chapter 13 repayment plan.

You may be qualified for Chapter 13 bankruptcy regardless of the type of income you earn. Income from any source can be used to obtain the protection of Chapter 13 bankruptcy relief. Most people who qualify have fallen behind in their mortgage due to some unexpected turn of events – people who lost a job but found a new one, or experienced an illness but now are able to work again. Our Connecticut Chapter 13 bankruptcy attorneys can assess your financial situation and determine the right Chapter 13 Plan for you.

Saving Homes Under Chapter 13 Bankruptcy Protection

Our statewide Connecticut, law firm has a successful record of saving thousands of homes under Chapter 13 of the Bankruptcy Code. The filing of a Chapter 13 bankruptcy at any time prior to the final approval of a strict foreclosure law day or a foreclosure by sale will provide an immediate federal court stay on all foreclosure actions while allowing borrowers time for repayment. Chapter 13 bankruptcy often represents the best – if not the only – means to save homeowners in trouble, particularly given the long history of government and banks’ unwillingness to take meaningful steps to assist homeowners in trouble. Don’t trust your home or your family finances to anyone other than the experienced debt relief, mediation and Chapter 13 lawyers at the Law Offices of Neil Crane.

Contact a Connecticut Chapter 13 Debt Reorganization Lawyer

Get answers to your questions about Chapter 13 bankruptcy. We offer a free consultation. Please do not hesitate to call us today at 203-230-2233, or complete our online contact form to discuss your questions and concerns with an experienced attorney. Call us now and speak directly with a Chapter 13 attorney. We never use voicemail.

How to Stop Foreclosure in Connecticut

How to Stop Foreclosure in Connecticut

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.

Be Proactive

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!

Negotiating Loan Modifications to Stop Foreclosure

Negotiating Loan Modifications to Stop Foreclosure

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.

What Happens When My Mortgage Changes Hands with Mortgage Modification?

Does my mortgage modification control future banks or servicing companies if my mortgage changes hands or is sold or assigned?

The simple answer is YES. New holders or servicers are legally bound by the terms and conditions of a properly modified permanent modification. A permanent loan mortgage modification is a legally binding new mortgage with terms that control and override the original mortgage. These terms will always obligate any future holders or servicers of your mortgage. Be careful about your payments when your mortgage changes banks.

Many transfers result in payment processing problems between old lenders and replacement lenders. Payments can be misapplied, returned, or late processed, causing improper mortgage defaults, late charges and credit reporting problems. Problems with escrow payments, insurance payments, and proper allocations to principal and interest can occur each time a mortgage changes hands.