April 14, 2025

house floating in water
stop ct deficiency judgment

Can I walk away from my upside down CT home and just let the bank take it back?

I frequently hear this question from homeowners – mostly from folks who feel they have no other options, or are simply exhausted from unsuccessful attempts at working things out with the lender. These folks mistakenly believe that simply “letting the home foreclose” is the end of their problems with their mortgage.


Unfortunately, letting any CT home foreclose is simply the beginning of  a new and larger set of problems.

Foreclosure in Connecticut can take years to complete – during which your credit will be completely ruined by multiple missed payments, and you may spend years dodging collection calls and workout efforts from your lender. As Connecticut’s leading short sale expert, I frequently have clients come to me after they have spent years waiting for a foreclosure to happen and it simply has not, and they are exhausted and just want to get rid of the property. Foreclosure provides no quick solutions.

Connecticut is a recourse state!

If you have the patience to wait the foreclosure out you may still owe money anyway! Lenders in CT have the right to pursue you for their losses after foreclosure. This is called a deficiency judgment. If the debts against the home exceed the home's value,  foreclosure simply the beginning of your next set of debt problems, as you may be pursued for the  deficiency balance.

The alternatives:

Laws regarding foreclosure deficiency judgments vary by state…making a Connecticut homeowners options much different from one in say Arizona. It is generally best to seek alternatives to simply walking away.

Another common mistake is assuming you can just “send your keys into the bank” and call it a day. While a deed-in-lieu may or may not be an option, you don’t qualify just by “sending the keys in”. There is a process involved, just as with any workout.

send keys to bank

Most of the time after a thorough discussion with myself and/or a lawyer, most of my clients decide that attempting a short sale is the single most favorable option to get rid of the home, avoid foreclosure and settle the remaining mortgage debt.

We are grateful to Minna for her knowledge, professionalism and expertise in shortsales. She truly cares about her clients and it is evident in the manner she represents them. She has a strong work ethic and keen negotiation skills when dealing with financial institutions and buyers. We strongly recommend Minna and her company if u want immediate results.

T.G.

Last Updated on April 14, 2025 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.

Leave a Reply

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}