If your mortgage is being foreclosed upon, there are many options to avoid a judgment of foreclosure (and its potentially devastating impact on your credit report). The key is to be decisive in how you want to address the foreclosure and do not delay unnecessarily.
One technique to avoid a foreclosure judgment is to list your property for sale in the hope of "short selling" the property. A short sale occurs when the property ends up being sold for an amount less than what is owed and the lender holding the mortgage accepts this amount. Consider the following scenario: your house is worth $250,000, but the amount of your mortgage is $325,000. Your negative equity is $75,000. In a conventional foreclosure situation, the lender would proceed to judgment, foreclose on the property, and then potentially bring a separate action against you for the difference between what is owed on the mortgage and what the property is sold for by the bank.
At The Woods Law Firm, LLC, we have assisted many Connecticut homeowners with short sales, all of which avoided a foreclosure judgment. Each lender has different requirements, so it is essential to consult with an attorney experienced in Connecticut foreclosure law to avoid making critical mistakes. Contact us at (860) 999-9757!
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