distressed
home owners

If you know anyone facing a mortgage crunch due to COVID-19, time is of the essence. The chances to successfully navigate this difficult time could be higher the sooner homeowners take definitive action to address their situation.

Failure to act quickly can have dire consequences including:   

• Loss of any equity the owner may have in the property.
• A substantial drop in their credit score, resulting in higher fees and interest rates on any credit they do obtain.  
• Higher costs and less availability of other products such as car insurance. 

According to The Higgins Group blog titled “Foreclosures and Foreclosed Homes in Fairfield County, CT” published on November 13th, 2015, foreclosures in Fairfield County and the rest of Connecticut are separated into two categories: Strict Foreclosure and Foreclosure by Sale.

In a Strict Foreclosure, a judge will set a date called “Law Day.”

This day is the deadline wherein you have to pay what you owe, which is usually debt combined with the court costs and attorney fees. With a Strict Foreclosure, you have the option of either getting a loan or trying to sell the property to pay what you owe.

In a Foreclosure by Sale, the homeowner’s property can be auctioned and is awarded to the highest bidder. The amount of money paid by the bidder is first split between auction and court costs and the debt the homeowner owes to the plaintiffs. The remaining amount (if there’s any) then goes to the homeowner.