YOUR OPTIONS WHEN FACING CONNECTICUT FORECLOSURE - Reid Real Estate Group
November 17, 2017

YOUR OPTIONS WHEN FACING CONNECTICUT FORECLOSURE

Facing a looming foreclosure can be a terrifying prospect, but you have options! 

Facing a looming foreclosure can be a terrifying prospect, but you have options! Knowing what they are and taking action is the key to resolving this situation and moving on gracefully

Knowing your options and taking action quickly  is the key to resolving this situation and moving on gracefully past this difficult time. In the past decade, we have hundreds of our clients avoid foreclosure . For a free consultation, contact us anytime, and read  on for a summary of all your options when facing Connecticut foreclosure:

Knowing what they are and taking action quickly  is the key to resolving this situation and moving on gracefully past this difficult time. We have seen hundreds of clients avoid foreclosure and 

Reinstate Your Mortgage

cash for real estate closing costs

After a few missed payments your lender will no longer accept a single monthly payment, but you have up until the foreclosure law day to bring the loan current. Partial payments won’t be accepted, but you have the option to bring the loan current by paying all the back payments, late fees and legal fees in one lump sum. 

Loan Modification or Forbearance

Loan Modification or Forbearance

A loan modification is a permanent change to your mortgage that may lower your payments and the delinquent payments may be added to the mortgage balance. You may or may not qualify for a loan modification and the process can be difficult and time consuming, but it is an option if you want to stay in the house. In a forbearance the lender agrees to reduce or suspend mortgage payments for a certain period of time, after which you resume making your normal monthly payments along with an additional amount to catch up. 

A loan modification is a permanent change to your mortgage that may lower your payments and the delinquent payments may be added to the mortgage balance. You may or may not qualify for a loan modification and the process can be difficult and time consuming, but it is worth trying if you want to stay in the house. In a forbearance the lender agrees to reduce or suspend mortgage payments for a certain period of time, after which you resume making your normal monthly payments along with an additional amount to catch up.

Refinance

Refinance

Keep in mind it is almost impossible to arrange new financing when you’re already in default on your existing mortgage. Refinancing will depend on your income, credit report, value of your home and the amount of your mortgage. If you’re not sure of the value of your home, contact me. I will be happy to help and I can usually give you a pretty good estimate right away with just some basic information.

The fact is that it is almost impossible to arrange new financing when you’re already in default on your existing mortgage. Arranging new financing will depend on your income, credit report, value of your home and the amount of your equity. If you’re not sure of the value of your home, contact me. Usually I can give you a fairly accurate estimate of value within a ½ hour. I would be glad to help and of course, there’s no obligation.

Bankruptcy

Bankruptcy

If your financial situation has improved or will shortly, filing bankruptcy will halt your foreclosure proceedings temporarily. Unfortunately, a few months later you would be back to square one. You may also want to note that filing bankruptcy does not change ownership of the home and it will still belong to you. The lender would still have to foreclose to take back title to the home, leaving you with not just a bankruptcy but also a foreclosure.

ct probate approval

A viable alternative if your financial situation has improved, filing bankruptcy prior to the auction will stop the sale. Unfortunately for most people, it only postpones the sale for a few months, at which time you would be back to square one. You may also want to note that filing bankruptcy does not change ownership of the home. The lender would still have to foreclose to take back title to the home, lavung you with a bankruptcy and a foreclosure.

Sell Your Home

Sell Your Home on the Open Market
short sale sign

If you have recently been served with a foreclosure lawsuit you still have enough time to sell your home.  We can help you sell your home quickly and if you have no equity, we can negotiate a short sale for you. A short sale allows you to sell your home for less than you owe and have your remaining mortgage debt forgiven. Some of our clients even receive relocation assistance from their lenders. Furthermore, all the seller associated costs of the short sale are generally paid out of the proceeds by your lender, making this option FREE to you.

If you have recently been served with a foreclosure lawsuit you still have enough time to sell your home.  We can help you sell your home quickly and if you have no equity, we can negotiate a short sale for you. A short sale allows you to sell your home for less than you owe and have your remaining mortgage debt forgiven.  Some of our clients even receive relocation assistance from their lenders. Furthermore, all the seller associated costs of the short sale are generally paid for by your lender, making this option FREE to you.

Deed in Lieu of Foreclosure

Deed in Lieu of Foreclosure

A deed in lieu of foreclosure is basically a voluntary foreclosure. You would have to apply and be approved by your lender for this option and a deed in lieu is not generally available if you have more than one loan on your property. As lenders prefer other workout options, even if you do qualify for a deed in lieu, the lender may first require that you attempt to modify the loan or sell the home. 

A deed in lieu of foreclosure is basically a voluntary foreclosure. You would have to apply and be approved for  this option and a deed in lieu is not generally available if you have more than one loan on your property. As lenders prefer other workout options, even if you do qualify for a deed in lieu, the lender may first require that you attempt to modify the loan or sell the home.

Let Your Home Foreclose

Let Your Home Foreclose

By far, your worst option! Many folks feel they should just walk away, but foreclosure has very serious consequences.  Foreclosure can easily take a year or longer, and CT is a recourse state. That means your debt doesn’t just disappear with the home. A lender that suffers losses in a foreclosure has the right to file a deficiency judgment against you and pursue you for the remaining debt. A foreclosure is just the beginning of a new and larger set of problems.

Don’t procrastinate; explore all the options available to you, TODAY. If saving your house seems unlikely, you should call me as soon as possible! Placing your home on the market a few weeks or a month from now may not give us enough time to find the buyer, arrange financing, and schedule the closing. Because of the time sensitive nature of your situation, this is not a time to go it alone as a "for sale by owner" or list your home with a friend or friend of a friend. You will need a professional with experience negotiating with the bank to have the best chance of success. I specialize in pre-foreclosure short sales and can help you resolve this unfortunate situation AT NO COST TO YOU.

I can promise that I will treat you fairly, with dignity and complete honesty.

Minna Reid

Minna Reid is 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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