What is Foreclosure in Middletown, Connecticut?

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Foreclosure is the legal process by which the lender in a mortgage arrangement takes possession of the property (usually a house) that secured the loan. This is done when the Middletown, Connecticut debtor has repeatedly failed to make their payments. Foreclosure often requires the house to be sold at auction. Often, banks want to get rid of the property as soon as they can, in order to collect as much money as possible, and move on.

In every state, including Connecticut, borrowers have the option to go through foreclosure by judicial sale. This means that the auction will be overseen by a court, to make sure that the bank makes an effort to get as high a price as possible (to increase the chances that the entire balance will be covered, as well as the odds that there will be some money leftover for the borrower). In some states, original mortgages are "non-recourse loans," meaning that the lender can only recover ownership of the house in the event of default. If the house is now worth less than the balance of the mortgage, the lender has to take the loss. You should speak with a Middletown, Connecticut Lawyer to see if this state is one of them. However, it is almost always the case that this protection does not apply to loans which have been refinanced.

How Can I Avoid Foreclosure in Connecticut?

First, you should never ignore the matter. As unpleasant as it seems, it is essential to stay on top of the issue. Ignoring the problem will never make it go away. You should remember that banks in Middletown don't want your house. While the foreclosure process can be devastating for the homeowner, it's no walk in the park for the bank, either. They expected to make a profit through interest on the loan paid over time, and foreclosure is a last resort, allowing them to cut their losses and move on. If you are honest with them, lenders will usually try to accommodate your changed financial situation, to avoid a default on your part, and the necessity of foreclosing on their part.

If you can't work things out with your lender, there are other options. You could try a "short sale," which is when you sell your house for whatever amount you can get for it, and use the proceeds to pay your mortgage. If the house sells for less than you owe, the bank still gets those proceeds, but the remainder of the loan will be forgiven. You might also consider a "short refinance" which allows a portion of the debt to be forgiven, while refinancing the rest, hopefully under better terms.

How Can A Middletown, Connecticut Attorney Help?

If you are worried about foreclosure, a good Middletown, Connecticut real estate Lawyer might be able to help. A Lawyer can increase your chances of keeping your home, and help minimize the financial impact if keeping it proves impossible.

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Life in Middletown

Middletown, Connecticut is a city in Middlesex County. Its population is about 47,000 people, according to a 2005 estimate by the U.S. Census Bureau.

The first foreign settlement of the area now known as Middletown came in 1650, by emigrants from a settlement nearby, which had been established a few years earlier. These settlers were Puritans, and during their period of influence, life was harsh. Some of this harshness was self-inflicted, in the form of extremely draconian laws, which allowed the death penalty for "crimes" such as cursing, blasphemy, and "incorrigible stubbornness of children."

During the Industrial Revolution, Middletown saw a major influx of immigrants from various parts of Europe, including Ireland, Italy, Germany, and Poland. This diversity is evidenced even today, with Middletown's various neighborhoods and ethnic restaurants (for which the city is becoming increasingly well-known), and the general cultural diversity of the city. Modernly, Middletown is a residential community, with the Middlesex Hospital being one of the largest employers.

If you live in Middletown, Connecticut, and need an attorney, you're in luck. There are many Middletown, Connecticut lawyers who can handle virtually any type of legal problem a person might have.