Strategic Enforcement. Efficient Recovery. Results That Protect Your Bottom Line.
Neubert, Pepe & Monteith, P.C. represents institutional lenders, private creditors, servicers, and special asset departments in enforcing defaulted commercial and residential loans throughout Connecticut. Our foreclosure practice is grounded in legal rigor, commercial awareness, and disciplined execution. We do more than process files; we enforce rights, preserve collateral, and drive recovery using every statutory, contractual, and procedural tool available.
Our Foreclosure Services Include:
Default Notices and Foreclosure Compliance
Effective foreclosure enforcement begins with precise notice and procedural compliance. We assist lenders with all pre-foreclosure compliance requirements, including the drafting and serving of default notices, acceleration notices, and demand letters. Our process ensures strict adherence to mortgage terms, state statutes, and federal regulations, preserving enforceability and minimizing the risk of borrower defenses.
Example: When a national lender initiated foreclosure on a commercial property, our firm reviewed the loan documents and issued a default notice compliant with both the mortgage’s cure period and applicable federal servicing rules, eliminating defenses and ensuring admissibility.
Court-Ordered Mediation in Residential Foreclosures
Connecticut mandates court-supervised mediation in most residential foreclosure cases. We guide lenders through this process strategically, protecting legal rights while facilitating resolution. Our services include preparing required documentation, advising lender representatives, and advocating for negotiated outcomes when appropriate.
Example: We represented a mortgage lender in mediation involving a borrower with inconsistent income. After three sessions, we negotiated a consent judgment with a short law day schedule, preserving the lender’s position and avoiding extended litigation.
Settlement: Forbearance, Stipulated Judgments, Deeds in Lieu, and Loan Modifications
Settlement is often the most efficient and commercially sound resolution of loan default. We structure and document settlement agreements that resolve defaults without unnecessary litigation. Whether through forbearance agreements, stipulated judgments, friendly foreclosures, deeds in lieu, or loan modifications, we preserve enforceability and position our clients for maximum recovery.
Examples:
We negotiated a stipulated judgment in a commercial foreclosure where the borrower consented to judgment entry with a six-month law day. When refinancing failed, the lender obtained judgment without trial, minimizing legal fees and time to recovery.
In another matter, the borrower proposed a deed in lieu of foreclosure to avoid public sale. After due diligence confirmed the absence of junior liens and environmental risks, we completed the transaction, returning title and eliminating foreclosure costs.
For a multifamily property, we structured a forbearance agreement allowing six months of interest-only payments in exchange for a reaffirmation of personal guarantees and default provisions triggered by nonpayment.
Summary Judgment in Foreclosure Actions
Summary judgment is a critical tool for resolving contested foreclosures efficiently and without trial. In disputed matters, we pursue summary judgment aggressively to eliminate delay and control litigation costs. We ensure full evidentiary compliance, including proper authentication of the note, mortgage, payment history, and default, positioning our clients for prompt and enforceable judgments.
Example: In a foreclosure challenged on standing grounds, we prepared a comprehensive summary judgment motion supported by affidavits and assignment documents. The court granted judgment, rejecting the borrower’s defense and avoiding months of trial delay.
Trials in Contested Foreclosures
While most foreclosures resolve before trial, contested matters require focused, trial-tested advocacy. When litigation proceeds to trial, we deliver disciplined courtroom representation tailored to the complexities of secured lending. We prepare witnesses, introduce admissible evidence, and litigate issues such as standing, payment disputes, lien priority, and equitable defenses.
Example: We tried a contested commercial foreclosure involving multiple guarantors and a mechanic’s lienholder. At trial, we established the lender’s priority through expert testimony and cross-examination. Judgment entered for the lender, affirming its first-position status.
Appellate Advocacy in Foreclosure Matters
Effective appellate advocacy is essential when foreclosure rulings are challenged or defended. We represent both appellants and appellees in foreclosure-related appeals, bringing a focused, strategic approach to each matter. Our appellate practice emphasizes issue preservation, procedural precision, and persuasive briefing to safeguard creditor rights or correct legal errors.
Example: In a residential foreclosure appeal, the borrower challenged the trial court’s rejection of a CFPB servicing defense. On appeal, we demonstrated the lender’s full compliance, and the appellate court affirmed the judgment, validating the lender’s position.
Additional and Underutilized Services:
Receivership Appointments Under UCRERA
Receivership is a powerful remedy for preserving the value of distressed commercial assets during foreclosure. We obtain court-appointed receivers under Connecticut’s Uniform Commercial Real Estate Receivership Act (Conn. Gen. Stat. § 52-619 et seq.) to take control of income-producing property, collect rents, perform necessary repairs, and protect asset value pending resolution.
Example: Our firm secured the appointment of a receiver for a distressed retail center burdened by unpaid taxes and deferred maintenance. The receiver restored essential utilities, remedied safety code violations, and stabilized the property—preserving asset value in advance of the foreclosure sale.
Direct Rent Collection via Assignment of Rents
Direct rent collection is an immediate and effective remedy for cash flow preservation during foreclosure. Upon borrower default, we enforce assignment of rents provisions by notifying tenants to remit payments directly to the lender, bypassing the borrower and preserving income throughout the proceeding.
Example: In a mixed-use commercial foreclosure, our firm enforced the assignment of rents provision by notifying all tenants of the borrower’s default. As a result, we redirected over $30,000 per month in rental income directly to the lender throughout the pendency of the action, preserving cash flow and reducing loss exposure.
Prejudgment Attachments for Deficiency Protection
Prejudgment attachment is a critical tool for protecting deficiency judgment recovery. When a foreclosure sale is unlikely to satisfy the full debt, we obtain court-approved attachments on borrower and guarantor assets, securing collateral and preventing dissipation before judgment.
Example: In anticipation of a deficiency following foreclosure, our firm obtained a $500,000 prejudgment attachment on a guarantor’s condominium. The court-approved attachment preserved the asset and prevented dissipation pending entry of a deficiency judgment.
Simultaneous Replevin for Personal Property
When loan collateral includes personal property, parallel replevin actions can enhance recovery. We prosecute replevin proceedings alongside foreclosure actions to recover pledged assets—such as equipment, inventory, and fixtures, under Article 9 of the UCC, ensuring maximum enforcement of secured interests.
Example: In connection with a commercial foreclosure involving a defaulted restaurant loan, our firm initiated a parallel replevin action to recover kitchen equipment pledged as collateral. We coordinated the seizure and public auction of the equipment, applying the sale proceeds directly to reduce the loan balance.
Lender Setoff Against Borrower Deposit Accounts
Setoff is a practical and immediate remedy to reduce exposure before initiating foreclosure. We advise lenders on the strategic use of setoff rights to apply funds held in borrower deposit accounts toward outstanding debt obligations, minimizing deficiency risk and strengthening recovery positions.
Example: Our firm advised a bank client in exercising its setoff rights against a borrower’s operating account. We successfully applied $90,000 in on-deposit funds toward the outstanding loan balance—reducing the client’s exposure prior to initiating foreclosure proceedings.
UCC Notices to Account Debtors
Redirecting receivables through UCC notices is an effective enforcement tool for lenders secured by accounts. For receivable-secured loans, we issue notices under UCC §§ 9-406 and 9-607 directing account debtors to remit payments directly to the lender, cutting off the borrower’s access to cash flow and preserving the secured party’s rights.
Example: Following a contractor’s default on a receivable-secured loan, our firm issued UCC § 9-406 notices to more than 20 account debtors. As a result, we successfully redirected over $100,000 in receivables directly to the lender, preserving collateral value and accelerating recovery.
Simultaneous Foreclosure of Multiple Mortgages
Consolidating foreclosures on multiple mortgages can streamline enforcement and reduce costs. When appropriate, we file a single foreclosure action covering multiple mortgages from the same borrower, minimizing litigation expense, avoiding duplicative proceedings, and preserving lien priorities.
Example: Our firm filed a consolidated foreclosure action involving three separate parcels securing two commercial loans from the same borrower. By combining the matters into a single proceeding, we preserved lien priority, eliminated duplicative filings, and avoided fragmented litigation—streamlining enforcement and reducing overall costs for the lender.
Including Guarantors in the Foreclosure Action
Including guarantors in the foreclosure action streamlines the path to a deficiency judgment. We routinely name personal and entity guarantors as co-defendants in foreclosure proceedings, eliminating the need for a separate lawsuit and allowing for efficient entry and enforcement of deficiency judgments.
Example: In a commercial foreclosure matter, our firm obtained a $250,000 deficiency judgment against a personal guarantor within the same action as the foreclosure, eliminating the need for separate proceedings and expediting enforcement for the lender.
Including Tenants to Streamline Possession
Naming tenants in foreclosure actions streamlines post-judgment possession and reduces delays. We include tenants in possession as defendants to resolve occupancy rights within the foreclosure proceeding, eliminating the need for separate eviction actions and ensuring immediate control upon entry of judgment.
Example: In a multifamily foreclosure action, our firm named all tenants in possession as party defendants. Following entry of judgment, our client obtained full possession of the property without the need for separate eviction proceedings, streamlining enforcement and minimizing post-judgment delay.
Post-Foreclosure Deficiency Judgments
When foreclosure sale proceeds fall short, pursuing a deficiency judgment preserves the lender’s right to full recovery. We handle all aspects of deficiency judgment proceedings under Connecticut law, including valuation hearings, statutory notice compliance, and enforcement, ensuring that any remaining loan balance is preserved as a collectible judgment.
Example: Following a foreclosure sale that yielded $700,000 on a $950,000 commercial loan, our firm pursued and secured a $250,000 deficiency judgment against both the borrower and the personal guarantor, ensuring full preservation of the lender’s recovery rights.
Trusted Advisors for High-Stakes Foreclosure Enforcement
Foreclosure is not just about recovering real estate; it’s about preserving and maximizing value. We approach each matter with urgency, precision, and a commercial mindset. Our team understands the legal complexities, operational hurdles, and business pressures lenders face. Whether handling a single troubled asset or a portfolio of distressed loans, we deliver responsive, results-driven counsel from initial demand through final judgment and enforcement.