Tagged : foreclosure

YES, CONNECTICUT IS A RECOURSE STATE

An internet search for the answer to this question, will frequently give the COMPLETELY INACCURATEanswer that CT is an anti-deficiency/non-recourse state.

This is a widely spread incorrect fact. If you live in Connecticut and your home forecloses - the lender absolutely has the right to sue you for a deficiency judgement.

In CT, a deficiency judgement may be pursued by the mortgagee in both a strict foreclosure, and foreclosure by sale.

Per Connecticut Mortgage Law:

  Sec. 49-14. Deficiency judgment. (a) At any time within thirty days after the time limited for redemption has expired, any party to a mortgage foreclosure may file a motion seeking a deficiency judgment. Such motion shall be placed on…

Will signing over my deed stop the foreclosure from affecting my credit?

NO. You cant avoid foreclosure by signing your deed over to anyone.  This will  remove your ownership of the property and any say or control you had in what happens to the home, but it doesn’t get you out of the foreclosure.

If you signed up for the loan, you’re still responsible for the loan, even if you sign away the house. Unless the lender specifically ends your responsibility for payment, you’re still on the hook. A foreclosure will still happen, and it will still show up on your credit.

Signing over your deed leaves you in a pretty bad spot –  still responsible for the mortgage, but having lost all your rights to the property.

Seek other alternatives to…

What is the difference between a short sale and a bank-owned home?

It seems theres quite a bit of confusion about how short sales and bank owned homes (REO) differ. Many are under the impression they are the same thing, but these two types of property sales are completely different.

A short sale is when the homeowner owes more on the mortgage than the home is currently worth and lacks the funds to make up the difference, but needs or wants to sell anyway. The homeowner may or may not be facing foreclosure. In a short sale, the lender (mortgagee) must agree to the loss between market value and the balance on the mortgage. By doing so the lender agrees to release their lien to the property so that the house can be sold and title can pass to the…

HAFA: the painfully slow road to a deed in lieu of foreclosure.

It has been 17 months since the launch of HAFA - government's "streamlined" short sale program - meant to simplify the short sale process and save families from foreclosure.

Unfortunately this program is proving to have the opposite effect. I have personally had a few of my sellers go through this program and at this point I am recommending all sellers steer clear of this program due to its many flaws and simple lack of desired effect.

A few examples:

One of my sellers has spent 6 months waiting to be approved into the program. 6 months later he has been approved, but to date we cannot get anyone at HAFA to actually tell us the terms of approval. Meanwhile, my seller has…

Are you dealing with a Connecticut foreclosure and running out of time?

Resolutions take time. Short sales take time, loan modifications take time, and deeds in lieu take time.

Banks are not very effective at communicating their workout plans to their attorneys, and attorneys will frequently move forward with a foreclosure, even if you are in the middle of a workout with your lender.

This is preventable.

Connecticut offers a foreclosure mediation service. This is free to qualified homeowners. Basically the state will assign a mediator to help you deal with your servicer (bank) in court, and most importantly help you get the time you need to get through a workout with your lender.

The offer to sign up for mediation generally comes at the…

Is FORECLOSURE really a four letter word? Rate of strategic default continues to grow.

Tired of carrying that house? It seems more and more folks are just saying no to making their mortgage payments and are choosing instead to simply walk away.

It is now estimated that 1 in 5 mortgage defaults is strategic. Strategic default is when the homeowner has the ability to pay, yet chooses not to and walks away simply because they feel that the home is no longer a good investment.

In this recent 60 minutes episode several people openly discuss their strategic default without shame. It is my opinion that this trend will continue to grow for the next several years. With the lingering inventory of overleveraged homes still left out there and…

I got a call from a Southbury, CT gentleman over the weekend. He was calling to find out his options regarding his foreclosure.

Regrettably, the real problem was he had already been foreclosed on 3 weeks ago. The lender now owned his home. In fact his former had also just begun proceedings for a $75,000 deficiency judgement.

At first he wanted to know how long he could stay...

I explained he may have a couple weeks to a couple months if the lender had to go so far as to evict him.

Then he asked would it be possible to make a repayment arrangement with the lender...

The time for that had passed.

Could he buy his home back with a new mortgage?...

Unfortunately there was no chance of him qualifying for a new mortgage for several years…

Deficiency judgements in CT: Will you be held responsible for the shortfall in a short sale?

Connecticut is a deficiency state. This means the lender that suffers a shortage in a foreclosure or a short sale has the right to pursue a deficiency judgement from the borrower.

How does this affect you as the homeowner?

In a foreclosure the lender can handle their shortfall as they wish. They can and sometimes do sue the homeowner for the loss they have suffered. You will have no control over this in a foreclosure.

HOWEVER - If you are involved in a short sale, you (or your agent negotiating the short sale) will have the opportunity to negotiate how the loan is settled. The terms of your short sale will be spelled out in your approval letter which…

What will happen if I don't make my mortgage payment anymore?

Are you considering or have you made the decision that you cannot or will not pay your mortgage any longer?

Here's what you can expect:

What will happen:

• Your credit score will start dropping with the first missed payment and will continue to sink.
• After about a month or two of nonpayment your lender's collection department will start calling you repeatedly at all hours of the day and they will send threatening letters.
• After about 3-6 months of non payment your lender will start foreclosure proceedings. The time between that and the actual foreclosure sale date varies greatly by lender. It could 3 months...it could be a few years.

What will NOT happen:

• No…

A lot of my clients have more than just house debt...usually they also have credit card and other debt to add to the mix.

Once you start borrowing from one to pay the other, or keeping some up at the expense of the others, it's time to start considering your options and fast.

If you're falling behind on your home or not paying other creditors to pay for the home, it is only a matter of time before you start having collection problems.

I cannot stress enough that when you see or even foresee this happening, please GET HELP RIGHT AWAY. If you feel you will inevitably lose your house or are even considering a short sale, call a local experienced short sale agent right away.

With the right agent, your short sale is likely to be successfull.…