YOUR OPTIONS TO AVOID CONNECTICUT FORECLOSURE

 

 Whether you want to keep your home, or you cannot or do not want to keep the home, you have options to avoid foreclosure.

 

IF YOU WANT TO KEEP YOUR HOME: 

  •  Bring your payments current: If you can (get a new job, win the lottery…) work out a repayment plan with your lender. You may be able to pay a little extra each month and get your payments current.
  • Loan modification: Lenders today have become more open minded to loan modifications and they may adjust the terms of your loan to make it affordable. It is worth a call to the lender to see if this is a possibility for you.
  • Forbearance: Forbearance is when your lender allows you to move the amount of money you are behind on to the back of the loan. This is only an option if you can afford your payments going forward.
  • Bankruptcy: This will stay the foreclosure process (typically for six months) and may allow you to stay in your home and repay your lender under different terms. The problem with bankruptcy is most people that go through bankruptcy have not solved their problem of being able to afford their house and end up in foreclosure again within a short time.

IF YOU CANNOT OR DO NOT WANT TO KEEP YOUR HOME:

  • Deed in Lieu of Foreclosure: Deed in Lieu of Foreclosure means that you give the house to the bank and walk away. i.e., you give up the deed instead of facing foreclosure. If you have more than one mortgage this is not an option for you. Most lenders (banks) will want to see that the house was on the market for at least three months before they will consider accepting a Deed in Lieu. A Deed in Lieu of Foreclosure has severe credit ramifications.

  • Short Sale: If you owe more than your home is worth, and don’t want to declare bankruptcy (because it won’t solve your financial problem), then a short sale of your home may be the best option. A short sale will usually stop the foreclosure, and allow you to settle your debt with the bank for less than the amount that is owed to them. A short sale will have less impact on your credit than a foreclosure or a deed in lieu of foreclosure. Is a short sale right for you?

Pursuing a Short Sale:

  • FIND AN EXPERIENCED REAL ESTATE PROFESSIONAL WHO HAS DONE A SHORT SALE BEFORE. Your real estate professional will be able to deal and negotiate with your lenders on your behalf. An experienced short sale agent will give you a much better chance of successfully short selling your home, and the services of the real estate agent will be paid for by the lender. Because there are often so many different entities involved in a mortgage (1st mortgage, 2nd mortgage, the investor on the loan, etc) you really don’t want to do this on your own, with no experience. There is usually no cost to you as the homeowner to have a professional deal with the bank on your behalf, and you’ll have a much better chance at getting your debt forgiven with a successful short sale.

  • GET STARTED NOW.The longer you wait to get started with the short sale process the less chance you have of success. Every state is different with their foreclosure process. You need to decide quickly to start the short sale process if you’re getting behind on your payments, or have already received a notice of default.

  • FOLLOW INSTRUCTIONS EXACTLY. An experienced short sale professional will tell you what you need to do to get the house ready to sell. Don’t get too hung up about the price. If you are overleveraged in the property (as in you owe more than the house is worth), you will have no proceeds anyway. Your main goal should be to stop the foreclosure and successfully have your debt negotiated for you. There is a lot of confusion out there about the short sale processs, and as a result many buyers get scared off. You will need a buyer that: 1.) Understands this is a short sale 2.) Understands the house is being sold “as-is” and 3.) Will not be scared off by the process. Some short sales go through quickly as 30 days, I have seen others take as long as 6 months. Don’t get hung up about the price, all you should care about is getting the place sold.

  • LOOK FORWARD, FIND A NEW PLACE TO LIVE. You will have to move out of your house at some point. Start looking for a new place to live NOW! Do not wait. Once your lender accepts the short sale, they will want to close within 30 days. That means you will have to be out of the house. When you move into a new place, it also allows you piece of mind. You’re starting a new life, putting the past behind you. Many people have reported having the first good nights sleep in months.

  • PREPARE TO MOVE QUICKLY. Because your closing date is unknown, you need to be prepared to leave your home quickly. In fact, for most people it is best if they are out of their homes by now. You do not want to end up having to live with relatives or having to live in a shelter. Sell the “Stuff” you really don’t need. Put the stuff you can do without on the internet or have a tag sale. Your possessions are just inanimate things; it’s the relationships with other people in your life that really matter. OK, enough life advice! Sell anything you don’t need or haven’t used in the last 6 months. The less you have to deal with on moving day the better.

  • PREPARE YOURSELF EMOTIONALLY. If you are already in default, or have a foreclosure pending, this whole scenario and process of trying to short sell your home can be very emotionally draining. You will receive solicitations from everyone and their mother. You may have people stop by your home while you are still there. It can be a very difficult process. Make sure you have people in your life to talk to about your situation. You will need a support network to help through this time in your life. It will pass. You are being proactive and taking steps to solve this problem, and in time, everything will work out. It may not be easy but only in our darkest hours do we realize out true strengths.

 

 I SPECIALIZE IN SHORT SALES AND WILL HELP YOU MAKE THE BEST OF THIS BAD SITUATION AND MOVE ON IN A DIGNIFIED MANNER.

CALL ME TODAY!

860.416.1255