During the most turbulent time of the housing market a few years back, most of our readers in Connecticut probably heard one term over and over: foreclosure.
While it is true that the housing market recovered from that slump, both locally and nationally, the fact remains that foreclosure is a possibility for some homeowners today. In this blog post, we will introduce the basics of home foreclosure.
In order for foreclosure to become a possibility in relation to real estate, there must be a mortgage on the property – the property owner is borrowing money from a lender and using the property as collateral. In that type of arrangement, the borrower must typically pay back the loan over the course of time, with set monthly payments.
If the borrower fails to make those payments in a timely manner, foreclosure is a tool that is available to lenders to attempt to recoup losses.
What are your options?
So, what if you are a homeowner who has missed payments on your mortgage and now you are facing a threat of foreclosure from a lender? Do you have any options? Like the answer to many legal questions, the answer is “it depends.” For example, in some cases, lenders don’t automatically proceed with foreclosure and, instead, might negotiate alternate terms with the borrower. However, even if the lender does proceed directly to the foreclosure process, you might have other options. Each situation is unique.
Property owners who look for help when they are facing foreclosure are looking for results. If you find yourself in this situation, be sure to have your unique situation carefully evaluated to find all of your options.