GET STARTED | Get Your Fair Cash Offer Today

  • This field is for validation purposes and should be left unchanged.

Understanding the Foreclosure Process in

Understanding the foreclosure process in is an important part of navigating your own home foreclosure. Knowing how the process works gives you the ability to handle it wisely and come out on the other side in the best way possible.

Let’s dive in…

Understanding the Foreclosure Process in

What is foreclosure anyway?

Foreclosure is the legal process that lenders use to take back a property securing a loan, generally after the borrower stops making payments.

Foreclosure is no fun.  But just know that it’s not the end of the world. With the right resources and guidance you can get through it and maybe even stop it.

When you understand the foreclosure process in … it arms you with the knowledge you need to make sure you can navigate it well and come out the other end as well as possible.

Foreclosure doesn’t happen all at once. It’s not true that the bank will just show up on your doorstep one day and evict you. Instead, it takes place in stages, and you may have options in every stage.

Let’s look at the stages of foreclosure.

The Basic Stages of A Foreclosure

There are a few stages that are important to any foreclosure process.

Foreclosure works differently in different states around the country, so be sure to know what the regulations and process are in your location.

The two ways different states use to foreclose upon a property are: judicial sale or power of sale.

We are here to help! Connect with us by calling (860) 452-2550 or through our contact page to have us walk you through the specific foreclosure process here locally in Connecticut.

In either of these scenarios, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment.

You may have received some of those notices yourself. If you did, don’t just ignore them! It’s hard to think about foreclosure but it’s best to be proactive by learning all you can and reaching out for help. It’s very important that you keep good records so you know where you are in the foreclosure process and what options are available to you.

Under Judicial Foreclosure:

  • Your mortgage lender must file suit in the court system.
  • You’ll get a letter from the court demanding payment.
  • Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure (and sometimes that can be extended).
  • If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
  • Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.

Under Power of Sale (or Non-Judicial Foreclosure):

  • The mortgage lender serves you with papers demanding payment, and the courts are not required – although the process may be subject to judicial review.
  • After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
  • The trustee can then sell your property to the lender at a public auction (notice must be given).

Anyone who has an interest in the property must be notified during either type of foreclosure.

For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.

What Happens After A Foreclosure Auction?

After a foreclosure is complete, the loan amount is paid off with the sale proceeds.

Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.

A deficiency judgment is where the bank gets a judgment against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale. A deficiency judgement can make a foreclosure worse because most of the time the borrower can’t pay the deficiency and is forced to declare bankruptcy to be freed from the debt.

A foreclosure alone will severely impact your credit. But a bankruptcy on top of a foreclosure is devastating to your credit. Bankruptcies and foreclosures remain on your credit for 10 years and will seriously impact your ability to obtain new credit, open a bank account or even qualify for renting an apartment or house, just to mention of few.

Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.

Here’s a great resource that lists the state by state deficiency judgment laws, since every state is different.

Generally, it’s always best to avoid a foreclosure auction if at all possible. Instead, call up the bank to see what your options are for restructuring or catching up the loan, or work with a reputable real estate firm like us at RMG House Buyers to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure, and a possible bankruptcy.

Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.

Understanding the Foreclosure Process in

When you understand the foreclosure process in Connecticut, you have a better chance at creating the best possible outcome for you and your family. Take the time to understand the resources available to you as well as the regulations of your location. Keep in touch with your lender to see if they’ll work with you, and reach out for the assistance you need.

We’ve been through the foreclosure (and bankruptcy) process ourselves so we understand what you’re going through. If you need to sell a property near Connecticut, we can help you!

We buy houses in Connecticut  like yours from people who need to sell fast.

Give us a call anytime (860) 452-2550 or
fill out the form on this website today! >>

Another Foreclosure Resource For Connecticut HomeOwners:

Get More Info On Options To Sell Your Home...

Selling a property in today's market can be confusing. Connect with us or submit your info below and we'll help guide you through your options.

Get An Offer Today, Sell In A Matter Of Days...

  • This field is for validation purposes and should be left unchanged.

Leave a Reply

Your email address will not be published. Required fields are marked *