June 18, 2018

short sale approval stamp

It can be nerve-wracking to fall behind on mortgage payments, especially when you know your mortgage debt exceeds what the home could sell for. Foreclosure seems inevitable!  Although there are several ways to avoid CT foreclosure, the whole process can seem overwhelming and scary. Find out how this Hamden, CT couple avoided foreclosure and walked away from their upside down home, debt free, in this short sale success!

Like many other homeowners that refinanced their home during the peak of the market, these Hamden owners were still upside down, as market recovery in CT has proved incredibly slow. 

After falling on hard times and missing a few payments, they were now facing foreclosure. After many attempts to work things out with their lender without success, they had made the decision to move out and attempt a short sale to settle their mortgage debt with Ocwen and avoid having the home foreclose

overdue mortgage payments

Within a week of going on market, a bidding war ensued, and strong buyer was secured. I anticipated a smooth, simple short sale approval as Ocwen generally tends to be very quick and easy to work with!

Unfortunately Ocwen proved difficult and slow this time around, and more complications followed as there were several judgment liens to sort out. After several grueling months back and forth with Ocwen and the junior lienholders, we finally reached agreement on terms with everyone! The junior lienholders agreed to release and Ocwen agreed to fully forgive the sellers excess mortgage debt in order to make the short sale possible!

short sale sign

 A few weeks later this Hamden, CT short sale closed, with these very relieved sellers finally leaving their troubled house behind, and receiving full forgiveness of over $80,000 of excess mortgage debt!

Last Updated on June 18, 2018 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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