What is Foreclosure in Norwich, Connecticut?

Find the right Foreclosure Bankruptcy attorney in Norwich, CT

Foreclosure is the legal procedure by which the lender in a mortgage arrangement takes possession of the property (typically a house) that secured the loan. This is done when the Norwich, Connecticut debtor has repeatedly failed to make their payments. Foreclosure typically results in the property being sold in an auction. Banks typically want to get rid of the property as soon as possible, even if it means taking a financial hit, and an auction is the simplest way to do this.

In all states in the U.S., including Connecticut, there is an option to go through foreclosure via judicial sale, in which a court supervises the sale, and makes sure that the proceeds first go to the lender, and then to any other entities that may have a lien or other interest in the property (in order of priority), and, finally, to the borrower, if anything is left. In many states, original mortgages are considered non-recourse loans, meaning that if the house is foreclosed and sold for less than the borrower owes, the bank cannot go after the debtor for the remainder. You should consult with an lawyer in Norwich, Connecticut to see if this is the case. However, this typically doesn't apply if the mortgage has been refinanced.

How Can I Avoid Foreclosure in Connecticut?

First, you should never dismiss the matter. As unpleasant as it seems, it is necessary to stay on top of the issue. Ignoring the problem will never make it go away. You should keep in mind that banks typically don't want to take your Norwich home. They aren't in the real estate business, and expect to make money through interest on the loan, not by selling your house. If you are up-front with them early on, they will probably make a reasonable effort to accommodate your financial system if it will prevent you from defaulting.

If you can't work things out with your lender, there are other avenues. You can 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 receives those proceeds, but the remainder of the loan will be forgiven. You may 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 Norwich, Connecticut Attorney Help?

If you think foreclosure is imminent, a good Norwich, Connecticut lawyer may be your best hope for staving it off. Even if keeping the house proves impossible, a good attorney can minimize the financial effects.

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Life in Norwich

Norwich, Connecticut is a city in New London County. It was the county seat of that county, before the state of Connecticut did away with county governments. It currently has a population of about 36,000 people.

Norwich is named after Norwich, England, and was founded by English settlers in 1659. By the late 1600s, a public landing had been built at the head of a nearby river, allowing ships to sail several miles inland to offload their goods. This allowed Norwich to serve as an important supply point for the colonists in the Revolutionary War, and proved invaluable to the war effort.

For well over 100 years after the revolution, the city of Norwich served continuously as a very important commercial shipping center, allowing for continuous economic growth.

Modernly, Norwich, Connecticut is a quiet residential community. It is home to Mohegan Park, a large forested area featuring several ponds and streams. This park provides ample recreational activities, such as fishing, hiking, and mountain biking in the summer, and ice skating and sledding in the winter.

If you live in Norwich, Connecticut and are in need of an attorney, it's highly likely that you'll be able to find one. Norwich, Connecticut attorneys are able to handle almost any legal issue they're faced with.

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