You might think that zombies are merely a product of Hollywood and books. While this is true when it pertains to the undead coming for your brains, a different type of zombie can threaten Connecticut homeowners who are facing a foreclosure. The term for a home that is languishing in the foreclosure process is a zombie foreclosure.
The prospect of foreclosure is daunting for Connecticut homeowners. However, if you’re unable to make mortgage payments that will be exactly what you’re faced with. Some homeowners are able to pursue alternatives, which can prevent a lengthy and often costly foreclosure process. Realtor.com explains 3 different ways to avoid foreclosure that might be available to you.
If your debt situation has gotten out of hand and you fear losing your Connecticut home to foreclosure, you may wish to consider the Home Affordable Foreclosure Alternatives program. As HomeOwnership.org explains, HAFA is a federal governmental program that gives you a foreclosure alternative if you wish to short sell your home or give a deed in lieu of foreclosure to your mortgage lender.
If you are a Connecticut homeowner facing financial difficulties, you may fear that you will be unable to stay current with your mortgage payments and therefore lose your home through foreclosure. Another problem you may face is that your home has lost value since you purchased it and is now worth less than your mortgage balance. If this is your situation, you may wish to check out the Home Affordable Refinance Program, popularly known as HARP.
While it is no secret that Connecticut bankruptcies and foreclosures have the potential to damage credit, the extent to which this occurs and the mechanics behind the process remain a mystery to many people, even those considering entering the bankruptcy process. This might lead to unexpected disappointments when pursuing a new mortgage. Understanding the difference between Chapter 13 and foreclosure is the first step in dispelling this mystery.
Navigating the language associated with Connecticut mortgage agreements might be challenging for those unfamiliar with real estate or finance. This challenge is compounded if the need for understanding comes along with a stressful situation, such as a bank compelling a homeowner to satisfy debt agreements. Regardless of the situation, it could benefit mortgagees to know their options. Here is some information on the loss mitigation process, one such alternative to formal foreclosure.