Foreclosure is a nightmare to any family going through it irrespective of the reasons why they are about to lose their home. Today we are going to look at the foreclosures effects in Connecticut and what local house sellers need to know. First we will look at the effects and the ways of easing them.
Foreclosure Effects in Connecticut to Sellers
- Loss of your home – Pretty self-explanatory here. The major end result of a foreclosure in Connecticut is of course the loss of the home to the bank. The bank will bring the house to auction and you may likely get evicted. If you are struggling financially you will likely be homeless with the large deposit you will need to find a place to rent. What is also likely is that the bank doesn’t get back all its money when they auction your home. The difference between what you own and what they sold the house for is what you will still own. That will lead to a bad credit rating.
- Decrease in Your Credit Rating – Your credit rating will be lowered by the foreclosure. How much? It depends on how high your current credit score is… but the higher your current credit score… the more your score will drop after a foreclosure. If you have a credit score of 680 or higher… you may see a drop of 100+ points. This will make it difficult to find an apartment because a lot of landlords do credit checks on new tenants. And it may be years before you could ever buy a house again. Some employers do credit checks too. So you may have a hard time finding a job.
- Depression and Stress – Your mental health is at stake because of the high pressure situation. Going through a foreclosure is emotionally exhausting and frustrating to say the least. I’ve seen families torn apart from a foreclosure. It has led to divorce in some cases with spouses having the additional legal fees, alimony and child support put on top of the financial struggles of the foreclosure.
I can lead people to drink and other kinds of substance abuse as they try find ways of coping.
- House Values In Your Community – With all the personal burdens of a foreclosure it may seems inconsequential but it hurts the community. Another one of the big foreclosure effects in Connecticut is that they tend to lower the overall value of the houses in your neighborhood… especially if there are multiple foreclosures in the immediate area. An entire street can become a blighted area with increased criminal activity. If the house goes vacant it can become a haven for homeless or drug users. This will endanger the families in the neighborhood.
How You Can Ease The Effects Of Foreclosure In Connecticut
For the well being of you and your family, you need to mitigate the effects of foreclosure as much as you can. The process can be frustrating and time consuming, but there are people who can help you navigate your different options in the process.
- Call your bank and work with them: Most banks are very willing and ready to work with you… if you can show that with their help you can get back on track and save your house. Or, if you just want out of the house but you owe more on the house than it’s worth… see if the bank has any programs to lower the mortgage burden so you can get out from underneath it without it going through an expensive foreclosure. After COVID a lot of banks worked very hard with homeowners to avoid foreclosure by lowering their payments or appraising their house for free so they can see if selling their house would be a good option.
- Talk with a local real estate expert, like Next Door Properties: We know the local Connecticut real estate market well and are very experienced in the foreclosure process here. A lot of homeowners think that once they get the first letter from the bank about a foreclosure that they don’t have any options. In reality, the foreclosure process takes a long time and as long as you work with your bank you might be able to prevent the house from going to auction. Give us a call at 860-704-9513 and we can guide you toward the resources that can possibly help you.
- Sell your house: If you’d rather find a way to sell your house and avoid the foreclosure all together, great! We buy local Connecticut houses for cash… and would love to look at your situation and make you a fair all-cash offer on your house. Depending on your situation we might have several ways of helping you sell your house and maybe coming away with some cash to start over again. Just call us at 860-704-9513 or shoot us your details through this website.
With the above knowledge on foreclosure effects in Connecticut – what sellers need to know, you can guard yourself by calling us at 860-704-9513 and we will assist you in the shortest time possible to sell your house. However, to fast track the process, kindly fill out our website contact form to give us more information about you. We’d love to connect with you and help you find the best solution!