Foreclosure Prevention Information 

Is  your home is heading towards foreclosure

Are you late on your mortgage payments?

What can you co today to continue residency your home?

 I

The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth - or 'underwater' - because  local markets saw declines in home values.  Short Refinance and other programs like Home Affordable Modification Program (HAMP)  and Home Affordable Refinance Program (HARP) have been put in place to help the FHA meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012. 

To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500. The property must be the homeowner's primary residence In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent. Interested homeowners should contact their lenders to determine if they are eligible. It was reported by NYT  March 12, 2011 that over 22 lenders are participating now.

 

You may have options.

 There is Foreclosure Mediation provided by the Connecticut Court System.   Depending on your personal situation you may have a variety of choices. 

Maybe you just want to talk to someone who cares about people and improving their situation in this difficult market. You may consider me to be that person. 

I will propose a course of action that you can discuss with your family and legal counsel to make a better out come from this difficult situation.          

Sincerely,

David Carr,  REALTOR   203-654-2905   www.david-carr.net

Knowing what the timeline is in Connecticut for foreclosure procedures is the most critical piece of the puzzle that you need.  It does not matter how good your plans for stopping foreclosure may be if you do not know how long you actually have to save your home. Go to the courthouse and review your file in the Clerk of Court Office. You have case number on the legal notices from your local Sheriff or Marshall. Do not ignore any notices. Show up for every court hearing. Have your loss Reorganization Proposal ready to present to the court. 

It is very important to have detailed written description of your situation that describes your good intentions, your previous responsibility for the property, other good information about yourself, your family, your employment, your commitment to the community, how the situation may have occurred out of your personal control, like your Home's Market Value Has Dropped, The Mortgage is in or Near Default Status or you have fallen on hard times. You must submit a letter of hardship that explains why, and your desire to reach an agreement with the bank.  This is your Hardship Proposal.  Banks do not want more properties vacant and more loans in default. Connecticut has court mandated foreclosure prevention programs as well. 

Obtain a current market value for the property and suggest the bank write a Loan Modification to forgive the previous debt. This can preserve your credit. The bank can loose more money and time evicting you and having a vacant property on the market for 100 days or more depending where you live. The bank may get more money making an agreement with you now. Everybody wins! Would you buy your house for market value today? Work with a REALTOR like me to get the real understanding of your market and unique situation. 

The next step may be putting your property on the market and sell it for a shortage of funds (Approved Short Sale). You may want to avoid this because you want to live in your house. But if the bank takes possession of your home you may have leave at some point. There is no standard time period for this.  The bank will get that sales amount less all the court and attorney fees, property preservation, Real Estate Sales Fees and possible problems that happen to vacant properties. You may have to pay taxes on forgiven debt or be asked to repay debt in the future. 

Understand all of the paperwork that your mortgage company needs from you. No matter what solution you work out with your bank, you will need to send them documentation. Get a check-list from them before you start sending information. This list will be the cover sheet for your Reorganization Proposal. You are offering to limit the losses to the bank by buying the house now.  You are also offering to create good will by making a public statement about how your lender helped you. 

There are no upfront fees or out of pocket expenses for any of this information which is provided as an introduction to my professional services. MY intention is to help you achieve the best results in a difficult situation 

As Your REALTOR I can be part of your team to assist you evaluating your current options, obtaining the best outcome for your situation, My full time experience since 1996 as a Connecticut Licensed Real Estate Agent can help you reach a more favorable outcome from a difficult situation. 

David Carr     203-654-2905     Coldwell Banker Residential Brokerage,               24 Washington Ave., North Haven, Ct. 06473