Tips for Understanding and Managing Your Real Estate Debt

Understanding and Managing Your Mortgage Loan

Owning a home is many people's dream, but it's a major investment that comes with many financial responsibilities. Mortgages, home equity lines, and judgment liens are common examples of liens that could affect your financial well-being. It's important to understand what liens are and how they're managed to avoid unpleasant surprises in the future. In this blog, we'll explore how liens work in Connecticut, where to find them, and discuss some options for effectively managing your real estate debt. Whether you're a first-time homeowner or a seasoned one, keep reading to learn more about programs that can help you get your financial house in order.

Everything You Need to Know About Liens

When it comes to homeownership, mortgages and other liens can play a major role in your financial well-being. A lien is a security interest granted over a piece of property that secures payment of a debt. Common examples include mortgages, home equity lines, or judgment liens. These documents are recorded on the Land Records, which is the public record of documents related to real property ownership, transactions, and other related information in Connecticut. Unlike in other states, Land Records in Connecticut are handled by each town instead of by the county. This means that all liens are recorded at your local Town Clerk’s office. These days, many towns have online search databases that allow for free or paid access to recorded documents. However, these online databases can contain errors, so it’s always best to go in person if possible. Most Town Clerk offices have computers that you can use to input your name and obtain an index of all recorded documents. If you’re having trouble navigating the process of managing liens on your property, you can also contact an experienced attorney who understands real estate matters.

Short Sales Can Help You Manage Your Debt

One common scenario that gets homeowners into financial distress is when their home’s value drops, and they owe more than it’s worth. In this situation, a short sale may be a good option. Short sales can be accomplished, even if the property has various liens, including mortgages, home equity lines, judgment liens, and certain tax liens. However, each creditor would need to agree, and the process must be negotiated. Working with an experienced attorney who can guide you through this complex process is important.

Mortgage Forbearances and Associated Risks

Homeowners struggling to make their monthly payments may qualify for other debt management options, like a mortgage forbearance. A forbearance is a short break from having to pay your mortgage. Some lenders offer 2–3-month forbearances, while others offer six months with no payments. However, many homeowners don’t realize that all those missed mortgage payments are due in one lump sum at the end of the forbearance period. This can be an impossible financial burden for many people, especially if they are struggling to pay their mortgage in the first place. It’s important to understand the risks and potential consequences of mortgage forbearances. If you’re struggling to make your mortgage payments and are considering a forbearance, seek professional advice to understand if you can afford this option.

Loan Modifications Offer a Path to Getting Back on Track

If you’re behind on your mortgage payments, a loan modification may be an option to get you back on track with your mortgage. A loan modification is an agreement with your current mortgage servicer to adjust the terms of your mortgage, making your payments more manageable. This is not a refinance, which is when you are current on your payments and are seeking to reduce your interest rate or take out home equity for home improvements, for example. Eligibility criteria for a loan modification can vary, and no law, federal, state, or otherwise, says you are entitled to a loan modification if you are behind on your payments. Work with experienced attorneys who can guide you through the loan modification process and help you understand your options.

Contact the Mortgage Modification Attorneys at LaRese Law

Understanding your options for managing liens and other debts related to your property can be a complex and intimidating process. However, with guidance from experienced professionals, you can navigate these challenges and make informed decisions about your financial future. Whether you’re considering a short sale or a loan modification, we are here to help you understand your options and find a path forward. Don’t hesitate to reach out to us for guidance and support. If your mortgage loan arrears have advanced to foreclosure, you should consult an experienced foreclosure defense firm to ensure you have the best possible chances to save your home. Relevant factors can include your income and expenses, whether you have had any type of assistance in the past, your home’s value and your particular loan Investor. This is a very complicated process that requires skill and experience. When the stakes are as high as potentially losing your home, having an experienced attorney on your side is vital. Call (203) 774-3332 to schedule a consultation to evaluate your options!