May 13, 2023

sell my ct home in preforeclosure
fha short sale

Can I sell my CT house while in pre-foreclosure?

YES! You have until the day your home forecloses to sell it and stop foreclosure!

Until the lender completes the foreclosure and gains title of your Connecticut home, you are the legal owner and can do what you like with the property, including selling it. The Connecticut foreclosure process can be quite lengthy, so odds are you have more time than you think.

  • Get the right help. It is critical that you hire an agent who understands the foreclosure process, short sales, and how to sell property in pre-foreclosure.
  • Request payoff statements from your lender(s). Interest and fees tend to add up very quickly, especially once the foreclosure begins and the lawyers add their fees. You need to know just how much equity you have. 
  • Move quickly. Foreclosure may take awhile, but fees do not. Move quickly to salvage any equity you may have in the property. 

What if I owe more than the home could sell for?

It is very common for a home to have negative equity, especially after a lengthy period of non payment. NO PROBLEM! You can sell your home for less than what you owe in a short sale.

what is a short sale

Do I need to ask the bank for permission to sell?

No, you don't. As long as a sale of the property will cover its associated debts in full at closing, you need do nothing but sell and close before the foreclosure sale date. If you cannot cover the debts on the home with a regular sale, you will need to have your short sale approved by your lender. Your CT short sale Realtor will handle this entire process for you!

What if I just walk away and let it foreclose?

That is always an option, however it is a very poor one. The lengthy foreclosure timeline and fees will eat up any remaining equity that could have gone to you. Or even worse - Connecticut is a deficiency judgment state. That means if the lender has losses in excess of the homes value, they can pursue you after the foreclosure for their losses. 

stop ct deficiency judgment

Need help with your CT home in foreclosure?

Reid Real Estate Group has been Connecticut's #1 short sale team since 2010. We've helped hundreds of CT homeowners solve their mortgage problems and move on with their life debt free, and we can help you!

When it comes to short sales, Minna is an expert. We had no idea that finding a buyer would be the "easy" part. Getting the bank's approval for the sale was a challenge. Our bank constantly made mistakes, even denying us at one point. The whole process was routine for Minna and she reassured us that we would work through the hiccups and eventually get approved. And she was right. What a relief! We hired Minna based on all of the positive feedback we found online and are glad we did. She's smart, responsive, knowledgeable and shows an overall level of professionalism that puts her in a different league than the rest. She regularly exceeded our expectations and we would recommend her to anyone looking to sell their home.


Last Updated on March 18, 2024 by Minna Reid

About the author 

Minna Reid

Minna Reid is The Broker - Owner of Reid Real Estate Group. Reid Real Estate Group is a full-service Connecticut residential real estate brokerage, specializing in helping homeowners with legal and financial challenges including short sales, probate sales and tax lien complications.

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