Frequenlty Asked Questions
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People rarely start out intending to miss a mortgage payment, but events happen and people are often unable to make all their monthly payments. If you have missed a mortgage payment, it is critical that you act quickly. Missing a payment can be the beginning of losing your home to foreclosure. If you miss a payment, seek immediate legal assistance in arranging a repayment plan with your mortgage company. You may qualify for a forbearance or mortgage modification that puts missed payments at the end of your loan. Get prompt experienced assistance. Read our Foreclosure Process article
Never skip a mortgage payment without saving the money. Many homes lost to foreclosure begin with an intentionally missed payment “to get the bank’s attention.” You do not have to be late on your mortgage to qualify for a Mortgage Modification program. Never miss a payment on purpose or rely on strategic default without seeking experienced guidance in advance. Read our Foreclosure Process article
Banks sometimes return payments to borrowers instead of cashing them. This very often happens if a loan payment is late. If this happens to your payments, you can still save your home. Many mortgage modifications are granted even after mortgage payments have been returned uncashed. Unfortunately, returned payments are often a sign that the bank is preparing to foreclose.
If a bank sends back your mortgage payment, seek immediate experienced advice.
If a bank returns a payment instead of cashing it, be certain not to spend the money! Saving uncashed, returned payments is often the key to successfully saving a home through governmental plans or private mortgage modification.
Any type of financial problem that happens to anyone in a household can be considered a hardship. Financial hardship is a very important buzzword to know when dealing with the world of mortgage modification. Many people often face foreclosure for reasons beyond their control. Many are underemployed or have family members who are underemployed. Their challenges can make it difficult to make mortgage payments.
A hardship determination is made to ascertain whether you have had a change in circumstances that caused financial problems, or if you are facing a recent or imminent increase in mortgage payments. Common financial hardships include: illness of a borrower or family member, loss of hours or employment of the borrower or a family member, failed business or reduced income, divorce or marital separation, medical bills or other unseen financial obligations, death of a borrower, co-borrower or family member, or seasonal income fluctuations.
- Banks mostly like to see certain forms of hardship. The best form of hardship is one that is/was temporary and whose solution can be documented.
- It is important that a hardship be presented as solvable and not permanent or impossible to overcome. Banks respond best to financial solvable hardships and not personal disasters.
- Many financial hardships occur to financial contributors to the household and not the borrower or co-borrower. It is imperative to properly explain and document hardship requests that involve multiple sources of household income, including seasonal downturns in household income.
Personal liability for defaulted secured debt is a major reason why you need to have an experienced bankruptcy and foreclosure defense lawyer on your side. Deficiency judgments are the amount still due to the bank after the loss of your home. Smart legal counsel can make certain that your future is legally protected from deficiency judgments. This is especially true if you are, like most Connecticut homeowners, “underwater” on your mortgage. Our informed legal advocates know when to protect your future from the disastrous results of deficiency judgments. We provide you with sound strategies to have success in dealing with any foreclosure, mortgage modification, short sale and/or bankruptcy process.
There really is no advantage to paying on a second mortgage if you aren’t paying on the first mortgage. But you always need to be sure that you are saving the money you didn’t pay to the second mortgage or the first mortgage holder. While it’s never good to miss any payments, paying on a second mortgage while you don’t pay the first mortgage doesn’t really accomplish anything useful toward saving your home.
Many people make payments on second mortgages while not paying first mortgages because they really don’t want to be behind on any bills, and therefore, pay the second mortgage despite the fact that it uses precious resources and won’t help save their home or get a modification. Although long-term solutions require relief on all debt fronts, mortgage companies often ignore second mortgages or other debt entirely when they review applications for modification.
Saving money by defaulting on a second mortgage or credit card obligations may be a very positive move for people seeking to save their homes and/or obtain a modification. As with many other financial matters, any attempts to save a home or missed payment should involve the assistance and advice of an experienced professional and a well-thought-out plan for financial recovery.