Connecticut Foreclosure

[dasmom]

It looks like I may be facing foreclosure NOD at the beginning of 2009. I just don't believe I will fight it if it becomes too stressful.

My loan payment just doubled and I can't afford it. It looks like the modification will not be approved.

What do I need to know about a possible deficiency in Connecticut?

How long would the process take until I need to leave my home?

Anything in particular about Connecticut that I need to consider?

Anything else I need to consider?

Thanks...

[The Professor]

Please provide additional factual information that includes:

1. Your estimate of the fair market value of your property.
2. Whether the property was purchased for your residence or was purchased as an investment.
3. The balance owed on your loan(s) and whether the loan(s) was created in conjunction with the purchase of the property.

Daniel

[dasmom]

Originally Posted by dasmom

1. Fair market value approx 200,000
2. Purchased as a residence
3. Balance owed 150,000 including fees and past due tax escrow. This is a refinance loan taken out in 2005. Original loan of 154,000 was 90/10 for building and purchase of property in 1995. Second mortgage was paid off before I refinanced.

Any guidance on this situation?

Thanks...

[The Professor]

Given an equity cushion of something like $50K, I'm wondering why you are not attempting to sell it rather than planning for a potential foreclosure.

Daniel

[dasmom]

Originally Posted by Professor Shays

Given an equity cushion of something like $50K, I'm wondering why you are not attempting to sell it rather than planning for a potential foreclosure.

Daniel

My concern is that there has been some deferred maintenance -- bathroom floors, all carpets on second level of home, and decayed wooden outside window trim. Cosmetic updates would be easy and inexpensive, but the other items are beyond my current budget.

I guess from a business perspective it makes sense to sell.

If I put the house on the market while waiting for the modification, will that mean I don't intend to live in the home and therefore make me ineligible for the modification?

Thanks...

[The Professor]

Absolutely not. By putting the home on the market and applying for a modification you are showing a willingness to look for alternative solutions and demonstrating a flexibility.

Daniel

[dasmom]

I just received a notice from ASC of their intent to foreclose if I don't pay past due mortgage amounts and excessive fees by January. They have refused all payments from me since November. I guess the Notice of Default is next.

I am a little perplexed since I had received a notice in early December that they were reviewing my request to restructure/modify the loan. I guess the notice that they intend to foreclose is the answer to my request.

They have not responded to the restructure proposed by NACA yet.

In the meanwhile, I have checked comparable properties. One house in my subdivision that is exactly like mine minus the central air is listed for $148,000 as part of pre-foreclosure sale.

Since I owe at least $150,000 not including mounting fees it doesn't seem beneficial to try to sell my house at this time.

I have to stay in a specific geographic area or my child will lose his seat at his public magnet school.

Are there any options left, or should I start packing?

My credit is now in the "poor" category. Will I be able to find anyone to rent to me?

Your responses are appreciated....

[The Professor]

So often the right hand doesn't know what the left hand is doing. I'd suggest sharing this information with the person handling your file at NACA.

Daniel

[dasmom]

Received a denial of mod request last week. It seems as though ASC did not consider modifying the loan in any way, but stated that I did not have enough income to support the current payment which is 206% of the prior payment.

Isn't that why I requested a modification?

NACA is submitting a counter-proposal - I hope I will get a positive answer from ASC this time.

Anyway, I have to look at all avenues including putting the house on the market as is. I will do some deep cleaning and organizing to make the house more attractive. I hope to speak with a realtor this coming week. Several houses have been on the market for 60 days or more in my neighborhood, so we'll see what happens.

I will also consult an attorney, to see what my other options may be.

Trying to keep my spirits up.

Thanks for reading......

[The Professor]

Thanks for keeping us informed.

Daniel

[dasmom]

Well, I got the dunning letter from the lender's attorney. I responded within the required 30 days disputing the validity of the debt. So, I'm waiting for their response.

I don't know if this will only delay the inevitable. Consulted with attorney who wanted two separate retainers. One to try to negotiate a modification and a second retainer if the modification did not work and I needed a defense in a foreclosure action. Sounds like throwing good money after bad to me.

The 1st NACA proposal was denied. NACA has resubmitted, but I haven't gotten a response yet.

Anyhow, it looks like I got an approval on an apartment.

There are also some state foreclosure prevention programs I could apply for.

I know that the foreclosure process marches on no matter the route I take.

I'm very stressed by all of this. Don't know if I should continue to come home every day feeling afraid of what I'll find in the mailbox or just move. The people who are emotionally supportive of me are equally divided on what they think I should do: fight to the end or walk away.

Anyone have ideas on how to handle the stress of this situation?

Thanks,

dasmom