Can you please help me? I'm desperate and scared

Jack Catalano

LoanSafe Member
Feb 13, 2020
31
5
8
Well, the lawyer told me that I should file for Chapter 7 Bankruptcy by Friday and the Law Day would go away on Feb.24. I also believe that would give me some more time in the house.
 

smileback1953

LoanSafe Member
Dec 6, 2019
6
1
3
thank you all for your kindness, sharing heart. I've been in extreme distress given my 2nd lien's run around. been sick for years, hired bad lawyers who took advantage of my vulnerability. despite 1st being current, i went sleepless nights for years, given identity, family and financial, medical crisis- to no avail- hope my reply get successfully read by all--you guys are great.

my questions : 1) should i accept debt collector lawyer offering monthly pay arrears current for a year, to avoid forclosure
with current balance including late fees, legal fees, w/ condition to dismiss case on fraud violations done 2014, filed 2017.
2) do we need to swallow this offer just to stay current to apply for loan mod later on, or should i do loan mod now?
3) are there other options like in-house mod, but my house now has some equity bank wants to access thru foreclosure. thanks so much and continue this advocacy my prayers with you.
 

OneHugeMess

LoanSafe Member
May 30, 2016
595
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What Is Strict Foreclosure?
In a strict foreclosure, the foreclosing party (the "lender") goes to court to ask for an order declaring you to be in default on the mortgage and permitting it to foreclose. If the court agrees that you are in default, it will approve the foreclosure and give title to your home directly to the lender. There is no foreclosure sale like with a judicial or nonjudicial foreclosure. (Learn about the general steps in a judicial or nonjudicial foreclosure.)

Strict Foreclosure in Connecticut
In Connecticut, the lender may opt to pursue a strict foreclosure if you default on the mortgage. (Conn. Gen. Stat. § 49-24).

How strict foreclosure works in Connecticut. The lender begins a strict foreclosure by filing a complaint (lawsuit) with the court and serving it to you along with a summons. (Learn more about the difference between a foreclosure summons and complaint.) You’ll also get information about:

If you don’t respond to the suit—or if you respond, but don’t have a valid defense—and the court agrees with the lender that you’re in default, the lender gets ownership of your home.

You can stop the strict foreclosure by paying off the debt. The court will give you get a certain amount of time to make full payment on the debt—called “redeeming” your home—before you lose it. The last day to redeem is called a “Law Day.” If you don’t redeem by the deadline, and the Law Days for any other defendants pass, title to your property will go directly to the lender. (Learn more about redeeming your home in a Connecticut strict foreclosure in If I lose my home to foreclosure in Connecticut, can I get it back?)

What is a deficiency judgment? When your total mortgage debt exceeds the foreclosure sale price, the difference is called a “deficiency.” Some states allow a lender to seek a personal judgment (called a “deficiency judgment”) against you for this amount.



You could face a deficiency judgment after a Connecticut strict foreclosure. Even though there is no foreclosure sale in a Connecticut strict foreclosure, the lender may seek a deficiency judgment against you after the foreclosure. The deficiency amount will be the difference between the total outstanding debt and the property’s fair market value, as determined by the court. (Conn. Gen. Stat. § 49-14). (To learn more about deficiency law in Connecticut, see Deficiency Judgments After Foreclosure in Connecticut.)
 

OneHugeMess

LoanSafe Member
May 30, 2016
595
53
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If the law day is truly Feb 24th, than you need to immediately file for bankruptcy. I'm serious, you need to get that completely done and filed unless you want to lose the home.

After the law day, they will begin a eviction proceeding, and you'll likely have about 30 days to get out. If I were you, I would file for bankruptcy right now.
 

Jack Catalano

LoanSafe Member
Feb 13, 2020
31
5
8
Now, which bankruptcy should I file for? I heard that Chapter 7 would allow me to stay in the house for 6 months. Chapter 13 bankruptcy would allow me to stay even longer. Is that true?
 

OneHugeMess

LoanSafe Member
May 30, 2016
595
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Now, which bankruptcy should I file for? I heard that Chapter 7 would allow me to stay in the house for 6 months. Chapter 13 bankruptcy would allow me to stay even longer. Is that true?
Chapter 13 will allow you to enter into a guaranteed repayment plan for the debt. Even if the Loan Servicer refused to give you a reinstatement, you would have the option to keep the home. Chapter 7 may not provide all the benefits you are looking for.

Do you have any other debt, besides the house?
 

OneHugeMess

LoanSafe Member
May 30, 2016
595
53
28
In that particular case, I would file for a Chapter 13 Bankruptcy. I think it would give you maximum benefit, as well as keep the option open to file for a Chapter 7. Unless you have credit card debt or other stuff to discharge, it doesn't really make a lot of sense to go the 7 Route.

Chapter 13 ensures a repayment plan, which is most important to you right now - anyway.
 

OneHugeMess

LoanSafe Member
May 30, 2016
595
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Also - once you file for Chapter 7, you are limited from filing again for many years. Chapter 13 can be filed multiple times. I think it's best you keep that option open.
 

isisis

LoanSafe Member
Jun 22, 2010
1,815
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North bay
I found out what Law Day means in Connecticut. Kind of late in the game, huh? If you missed any deadlines you could try contacting the court clerk and ask for mediation but it looks like bankruptcy may be your only option at this point. Once that gives you a little breathing room you could then look into mediation and finding a roommate to cover the rest of your payment.