Foreclosure in CT
In Connecticut the foreclosure process goes through the courts. At the beginning of the process you would be served by a State Marshal with the Summons and Complaint, informing you that the foreclosure is being filed with the court.
In the packet that the State Marshal serves you with is information regarding the Foreclosure Mediation program. This link will bring you to the court’s website that explains the mediation process. In mediation you can be reviewed for options to avoid foreclosure such as a loan modification, short sale or deed in lieu of foreclosure.
If you wish to keep your home you will need to either pay the bank the missed payments, called reinstating the loan, or be approved for a home retention option.
Home retention options include:
Re-Instate the Loan
Simply paying all the missed payments, interest and fees to bring the loan current.
Repayment Plan
Your lender approves a plan where you start making your normal monthly mortgage payment plus extra to slowly pay back what was missed.
Forbearance Plan
Temporary agreement for no or reduced payments. Not a permanent restructuring of the loan. You must re-instate the loan or be approved for a permanent option when this expires.
Payment Deferral
Loan payments are moved to the end of the loan. You go back to making your regular payment, or it may be combined with a loan modification.
Loan Modification
Permanent restructuring of the loan. You typically must have a permanent source of current income to qualify.
Emergency Mortgage Assistance
Emergency Mortgage Assistance is a government loan program. It can be used to pay back arrearages.
If you cannot keep the property — or don’t wish to
If you have come to the point where you cannot keep the property, or do not wish to keep the property, then you have a few more options to avoid foreclosure.
Sell the Property
If you have equity in your property then selling it as soon as possible is best to salvage as much of that equity as possible. Often a quick cash sale can be a good offer to end the foreclosure ASAP.
Short Sale the Property
A short sale is when the sales price of the property is not enough to satisfy all the liens attached to the property, as well as the costs of sale. The sale is negotiated with the lender so that they accept the funds from the sale, even though they are less than the amount owed.
Deed in Lieu of Foreclosure
This is where the homeowner and lender agree for the homeowner to sign the property over to the lender, rather than the lender having to foreclose to take it.
So what do we do?
We are a property solutions company. When we speak to homeowners that are facing foreclosure and they wish to try to keep the home, we do all we can to advise and direct them to resources that may be able to assist them in doing so, such as CHFA and Foreclosure Mediation. Our company founder, Sean Wilder, has been helping homeowners avoid foreclosure for nearly 20 years. With his guidance, we know the options available for homeowners to keep their home.
If the homeowner wants to sell the property to avoid foreclosure, then we have options that we can provide to assist.
So what options can we offer?
Option 1
All Cash Offer / Close Fast
If time is short and you need to sell fast, or the property needs significant repairs or has other issues, such as uncooperative tenants, our homebuying company Turning Point Properties can give you a fair cash offer and close on your timeline.
Option 2
White Glove Service
If there is more time before the foreclosure there is a process where Turning Point Properties can work together with you to get you an even higher sale price on the property than a cash offer can often provide, while still providing you many of the same benefits that a cash offer does.
Option 3
Retail Sale
If there is time before the foreclosure and either your home is in market-ready condition, or you have the funds to bring it up to that condition, a retail listing may be the right move. Our sister company, Rydon Realty, specializes in helping struggling homeowners get top dollar for their properties.
Option 4
Short Sale
If the property value is less than what you owe the mortgage company, we can assist in negotiating a short sale with your lender so you can avoid foreclosure. Our sister company, Loss Mit Services, is CT’s oldest and most well-established short sale debt negotiation company, having helped thousands of CT homeowners avoid foreclosure since 2008.
If it is time to sell, we can discuss all the options above and present you a detailed proposal with all applicable options. It’s your choice how, or if, you want to proceed. The consult is completely free.
Request a Call Back to Discuss your Options
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54 Hazard Ave Suite 309, Enfield, CT 06082