As a homeowner, one of the most difficult moments you may face is a foreclosure. Whether due to financial hardship or personal emergencies, failing to pay on your loan will eventually force the hand of your lender to take possession of the house from you and sell it to someone else. However, for homeowners in Connecticut facing foreclosure, there are a variety of available foreclosure mediation options available that can help you avoid foreclosure completely! With the right partner in your corner, you can find the help and guidance you need to navigate a complicated and stressful situation.
Understanding what a foreclosure is can take some of the feelings of fear and helplessness out of the process. In short, a foreclosure is the process of a bank or home mortgage lender taking control of a home or property due to consistent failure to pay on the loan given to purchase the house. The foreclosure process differs depending on the state in which you live, but the final result is always the same: loss of property and any equity value you have in the home.
In Connecticut, foreclosures will often begin around three to six months following the first failure to pay a mortgage payment. After repeated attempts to receive payment, the lender will send the homeowner a notification of failure to pay notice, and the legal process will begin. It is at this point that you may need to find help and aid in how to choose the best path forward.
Connecticut follows a strict foreclosure process, which does not involve a judicial sale. Instead, lenders will place the property up for availability to interested parties on “Law Days”, which allow creditors to purchase the property in a particular order. The “Law Days” process can take some time, which allows for homeowners to take action to help stop or delay the sale of their home.
While foreclosure can seem like the end of the road for your home ownership, there are actually many avenues available for Connecticut residents that can help you slow down the process. In many cases, eligible homeowners can use these methods to get back on the right track and prevent a foreclosure entirely! When in doubt, trust that most banks, lenders, and mortgage brokers are ready to help you with your foreclosure situation rather than leave you out to dry.
At the Garnet Property Group, we are passionate about helping families avoid nasty foreclosure situations, and recover the hope and joy of owning the home they love. Here are 7 action steps you can take today to avoid foreclosure.
By refinancing your home with your lender, you can begin a new mortgage and take advantage of any equity you may have put into your house. By taking advantage of lower mortgage rates, you can even save money in the long run with a lower payment. The money you receive from a refinance can go toward helping pay off any back-owed payments quickly.
An increasingly popular method of refinancing is known as a reverse mortgage. With a reverse mortgage, homeowners can borrow against the unencumbered value of the property. This process can help you gain the money needed to get your payments current and stop the foreclosure process. A skilled mortgage lender can help you learn if a reverse mortgage is the best avenue for your unique situation.
Life happens, and most lenders understand that you may have seasons of financial hardship that prevent you from being able to pay your loans in full or on time. The bank or lender may be willing to work with you and offer counseling to help define new terms for paying your loan that fit your budget. In some cases, you can request a financial hardship forbearance, which will put an end to any owed payments for a temporary period. Contact your lender to learn more about their available options.
In some instances, you can offer your lender a deed in lieu of foreclosure to offset the pending foreclosure. With a deed in lieu of foreclosure agreement, the borrower and lender will work together to provide a deed to the property to the lender to secure the loan – removing the need of foreclosure. In most cases, this agreement means that the lender owns the home and the debt is paid.
If you find yourself ready to rid yourself of your owed payments and your home, you may wish to simply sell your house! If you are in need of a fast sale in order to satisfy any immediate financial issues, you can take advantage of a short sale or sell to a property group.
With a short sale, you will typically work with your lender to privately sell the home immediately, with the bank understanding that they will not receive the full amount of the loan back from the proceeds. Some lenders may be willing to move this way if they want to avoid having to handle the sales process of a foreclosed home.
You can also work with a property group to sell your home quickly for a cash offer. The Garnet Property Group aids homeowners across Connecticut in a variety of situations to help offer fast, guaranteed closings on their home in an as-is condition with a competitive cash offer. Our team of experienced property buyers are skilled in helping you avoid foreclosure and find new, creative ways to rid yourself of unwanted property and start a new path toward financial freedom.
While a potential foreclosure can be a scary and intimidating experience, it is not your only option should the bank come knocking. Life impacts everyone, and different seasons can bring financial hardships and the need for additional help. By slowing down, taking a deep breath, and researching your available options, you can better decide which method may be best for you and your family.
To save both your pocketbook and your home from foreclosure, methods such as refinancing, forbearance, and offering a deed in lieu of foreclosure can help you take advantage of the biggest savings – while removing the stress of looming foreclosure proceedings.
Another great option that you may be interested in discussing is selling your home with a property purchasing company such as the Garnet Property Group. By taking advantage of property counseling, fast closings and a cash-offer for your home in an as-is condition, you can quickly move out of legal issues and move forward with money in hand. Contact our team today to learn more about selling your home, as well as other great financial tips and tricks for Connecticut homeowners!