While the housing market is booming, unemployment is at an all time low and the economy is strong, some people in Connecticut are still struggling to make their mortgage payments. Inflation and soaring prices could have caught up with them.
If you’re underwater on your home, or having trouble keeping up with your monthly mortgage payments, you could be fearful that your lender or the city is going to foreclose on your house.
Thankfully, there are a number of things that you can do to avoid foreclosure in Connecticut. It’s important to remember that moving quickly is absolutely paramount, and could save your credit rating, your home and your well being.
So lets dive in on a couple quick tips on possibly how to avoid foreclosure in Connecticut with your home.
The Keys of How To Avoid Foreclosure in Connecticut – Don’t Abandon Ship
Many people simply give up and walk away from their home. They ignore all the letters their lender is sending. They stop answering the phone and delete unread voice messages. There are areas of Connecticut have begun to resemble shanty towns, abandoned houses with garbage piling up in the yards, homeless people living in the streets, drug deals happening on the corners. Inflation and the economy has impacted residents significantly.
Detroit is a prime example of what can happen when it goes too far and people abandon their homes, even entire neighborhoods.
This can be stressful situation, but it’s extremely important to keep your wits about you. Stay strong! A foreclosure will have a huge negative impact on your credit score, and likely prevent you from purchasing a home for years to come. That may not sound like much, just a number on a piece of paper but it hurts everything.
You can’t get credit cards, you can’t get a loan to make repairs to your car, or even buy a car. When they do give you credit, the rate is so high that you can barely afford it and when you miss 1 payment they repo the car and all that money spent is wasted.
And maybe you decide that you will rent instead of buying a home. Fat chance! Landlords across Connecticut check your credit and if its bad they wont approve your application. Many people are left homeless or living in bad neighborhoods because they didn’t act in foreclosure.
If you sell your home, you could leave a portion of the loan unpaid, and the lender could pursue legal action against you for the unpaid portion.
While it’s extremely stressful, you do have options:
• Negotiate with your mortgage lender. Banks and other financial institutions are well aware that people in Connecticut are struggling, especially after COVID. If you haven’t missed a payment yet, you may have some leverage to renegotiate the terms of your loan. Even if you missed a few payments they can work with you to let you pay a little less until you are back on your feet.
Banks don’t like foreclosing on homes, and many will work with you if you aren’t too far behind. You may be offered forbearance, or even a full loan modification. But the worst thing you can do is not talk with them. They can’t offer you a deal if you don’t talk with them.
• Ask for help from Uncle Sam. Over the last five years, the federal government has implemented a number of programs to help struggling homeowners. The Home Affordable Modification Program (HAMP) allows struggling homeowners to modify their loans, reducing monthly payments. The Home Affordable Refinance Program allows homeowners who are current on their mortgage payments refinance an adjustable rate mortgage into a low-interest, fixed rate loan.
Even the state of [market state] offers a free Foreclosure Hotline you can call toll-free Monday to Friday 8 AM to 5PM. You can even leave a message outside those hours.
Both of these programs are subject to eligibility requirements.
We understand that the possibility of losing your home can be stressful. You aren’t alone. Citizens all over Connecticut are going through the same troubles. Foreclosure can have a lasting effect on your financial life, and it’s important to move quickly and take advantage of any options available. You could save both your credit rating and remain in your home.
We may be able to help you avoid foreclosure… connect with us today and lets discuss your situation. We don’t charge any fees… we’ll evaluate your situation… and present you your options so you can move forward and get this foreclosure behind you.