Water and Sewer Lien Foreclosures
Every year, hundreds of foreclosure actions are commenced for outstanding water and sewer bills. These delinquent bills become statutory liens on a homeowner’s property and become difficult to resolve as a result of large interest charges. Similar to real estate taxes liens, delinquent water, and sewer bills are afforded special treatment under the law.
- These liens are granted 18% default interest rate which compounds daily.
- These liens take priority status over mortgages and can and will foreclosure out both the homeowner and the mortgages.
- Application of payments made go to arrearages first, further elongating the default for the homeowner.
Delay in paying off your delinquent water/sewer debt results in larger repayment amounts and an inability to bring yourself current without the assistance of an attorney.
Water and Sewer Foreclosure Process
Homeowners who are behind on water and or sewer bills can experience foreclosure actions commenced for very small amount of debt, even as low as $1,000.00. Water and sewer lien foreclosures are initiated when a sheriff/marshal serving a writ that is usually left at the homeowner’s residence. This begins the foreclosure process and the additional legal fees and costs that can be more than the underlying bill itself. Homeowners can easily miss this deadline and trigger the next step, Defaults.
Default Orders can be reversed but you need to obtain experienced legal counsel to fight back on your behalf.
Unless defenses are filed, a Judge will enter a Judgment of Strict Foreclosure or Foreclosure by Sale. This judgment will list a date certain that title to the property will be vested out of the homeowner. This is the final step in the foreclosure process and this date is generally set within 90 days, on average but could be as soon as 20 days.
Do not let this foreclosure action go unanswered, with the assistance of a specialized attorney you can stop the foreclosure action and protect your home.
Water and Sewer Foreclosure Resolution
Resolution of outstanding water and sewer bills can be very simple if you know what options are available to you and takes steps to deal with the foreclosure. An experienced attorney can help you stop the foreclosure action, and protect your property from going up for Foreclosure by Sale.
- Voluntary payment arrangements with your creditor may be available, but often require a 6-to-12-month repayment plan which may be tempting but unaffordable.
- In many cases, your Bank may pay off delinquent water and sewer bills. Unfortunately, this creates a default with the Bank or mortgage company. This can result in a mortgage arrearage and a subsequent Bank foreclosure.
- Chapter 13 bankruptcy is an option that immediately resolves this type of foreclosure. The filing of the Bankruptcy will automatically stay the foreclosure suit and create a five-year repayment plan. Chapter 13 also requires that the water and/or sewer bills be current and stop the cycle of default.
At the Law Offices of Neil Crane, we’ve been solving foreclosures throughout Connecticut since 1983. Call us for a free consultation with Attorney Crane at (203) 230-2233.
