Last Resort Options

When a homeowner is facing foreclosure and other options have not resolved the situation, it is important to understand what may happen next and to obtain appropriate professional guidance. Foreclosure and bankruptcy can have significant legal, financial, tax, and credit consequences.

1. If Foreclosure Proceeds

If mortgage payments remain unpaid and no alternative resolution is reached, the lender or mortgage servicer may proceed with foreclosure. Connecticut mortgage foreclosures are handled through the judicial process.

Homeowners who receive foreclosure papers should not ignore them. Connecticut homeowners may have access to foreclosure mediation and other assistance, depending on their circumstances. Consider contacting your mortgage servicer promptly and obtaining advice from a qualified Connecticut attorney.

2. Bankruptcy

Bankruptcy can affect foreclosure proceedings and other financial obligations. Filing a bankruptcy petition generally creates an automatic stay that can temporarily stop many collection activities, but how the stay applies and what happens afterward depend on the type of bankruptcy and the homeowner's individual circumstances.

Bankruptcy is a legal matter and is outside the scope of real estate brokerage services. Homeowners considering bankruptcy should consult a qualified bankruptcy attorney before making decisions about their property.

3. Connecticut Foreclosure Assistance

Connecticut homeowners facing foreclosure may be eligible for assistance through state programs, foreclosure mediation, or HUD-approved housing counseling. Available programs and eligibility requirements can change, so homeowners should use current information from the Connecticut Department of Banking.

Connecticut Department of Banking — Avoiding Foreclosure:

Connecticut Department of Banking - Avoiding Foreclosure

Important Note