◆ Proper Foreclosure Procedures Were Not Followed
A lender seeking to foreclosure a home has to follow strict foreclosure procedures set by the Connecticut Supreme Court. If these procedures and steps are not followed, the borrower can challenge the foreclosure. If the problem is serious, the case can be dismissed and the lender forced to start the foreclosure over. Connecticut does have a rule that absent some fraud or mistake, once the foreclosure is completed, it is done aunt here inso going back.
◆ You Are An Active Member Of The Military
If you are an active member of the military serving our country, no foreclosure can proceed. The lender has to certify to the Court that they have investigated whether or not you are an active service member before they re allowed to obtain a judgment of foreclosure. Military members can utilize the protections afforded by the ServiceMembers Civil Relief Act (SCRA), which offers assistance to members of the military facing foreclosure.
◆ Mortgage Terms Are Deemed To Be Unconscionable
Unconscionable mortgage terms presents a rarer defense to foreclosure. The mortgage's terms may be unfair or illegal. If you were not represented by a lawyer or otherwise unable to make an informed decision about the mortgage loan, a court could refuse to enforce the mortgage at all.
◆ The Best Defense Is A Good Offense
Connecticut, like many states, has a mediation procedure that offers homeowners a chance at working out the mortgage problems. If requested, the Court will refer the case to an impartial mediator who will facilitate communication between the parties to see what resolution can be made. Solutions include a temporary or permanent reduction in the interest rate, an extension of the life of the loan or a temporary forbearance in the payments. There are also several government programs available, but they are not expected to last after the end of the year.
Banks do not like to take homes in the winter months if they are occupied. They would rather let you shovel the snow, heat the house, and secured the house so that it is not vandalized. It does seem, however, that banks are in a rush to take back homes faster than before. Or maybe they realize that just filing a foreclosure does not guarantee a quick result as the Mediation process does slow things down a bit. Since Mediation can add a few months onto the foreclosure process, timing the filing of the foreclosure so that mediation completes in the spring might be the reason for these filings.
Me. I'm speechless. Even FannieMar and FreddieMac have a heart in not putting anyone out of their home during the holiday season. They have suspended evictions from December 18, 2015 to January 3, 2016. On one hand, I hope that this increased foreclosures is not the banks being heartless during the holidays. On the other hand, I also hope that this is not an indication that homeowners in Connecticut are not falling further into financial distress.
Check out my interview in the newspaper here.
Why seven years? It turns out that there is no particular reason other than a compromise between the Senate and the House when the Fair Credit Reporting Act was being drafted was back in the late 1960’s. It has nothing to do with the Bible or the Statute of Limitations for collection of a debt. It was just an arbitrary time period picked by elected representatives as a “reasonable” time.
Is it reasonable? The answer is that your history is in the past. If you do things to manage your debt better now and pay everything onetime, most lenders will take that into consideration. While no one knows exactly what does into your credit score, time has to be a factor.
When collecting delinquent accounts, collectors will many times claim to be able to seize bank accounts for the payment of the debt. It’s not so easy. But it is possible. In most cases, you need to be sued first, unless the bank account is with the same institution where the money owed. Read the article on Credit.com for more.