Foreclosures in CT & How to Avoid
When financial trouble makes it hard to pay your mortgage, it’s hard to talk to a stranger at the bank about your problems. Taking a quick online quiz to see what loan workout programs can help you stop foreclosure is a less painful and simpler way to dip your toe into the loan modification pool. With that in mind we offer online tools to help you discretely explore options to foreclosure. You can answer 10 quick and relatively easy questions and the tool tells you which government programs might help you avoid foreclosure.
Foreclosures For Sale in CT
Savvy homebuyers looking to buy real estate in ct recognize the fact that buying foreclosure homes in CT can be an excellent way to purchase a home at only a fraction of its actual market value. However, rushing into foreclosures in CT can be very dangerous and those that do so without professional advice may learn expensive lessons the hard way. Like most things in life, buying foreclosed homes in CT has its pros and cons.
Even routine home sales in CT can present problems. Real estate foreclosures in CT can present a fantastic, moneymaking investment opportunity, or it can turn into an endless money pit if you don't approach it in the right way.
You hear about foreclosure sales in the news regularly. Why would you buy a foreclosed home? Some of the many reasons homeowners and investors are flocking to the foreclosed homes for sale in CT:
Foreclosures in CT Pros:
- Low Prices: Foreclosures in CT occasionally sell for as much as 30% - 50% below their true market values. More often CT foreclosed homes sell at discounts more like 5% - 10%, but foreclosures in CT are always priced below homes in the conventional homes for sale in CT.
- Flexible Financing: Banks sometimes sweeten the deal to sell a foreclosed property in CT more quickly by offering flexible financing terms.
Profitability: Foreclosed and REO homes in CT are often great opportunities for resale, equity-building, renting, or other investment purposes because bank owned homes are so inexpensive. With proper guidance from a Realty3 CT Realtor Foreclosure / SEO properties in CT present an opportunity to make considerable profit by wisely investing in foreclosed properties.
Low Closing Costs: Banks and government agencies are often in a hurry to sell foreclosed homes in CT. Foreclosures in CT frequently will accept lower down payments, financing options, closing costs, and some other costs related to buying a home.
Great Fixer Upper Homes: Many foreclosed homes in CT are in need of repairs, restoration, and certainly some TLC. By investing some sweat equity in a foreclosured home in CT, home buyers make a significant profit by later selling the home.
No Move-in Delays: Foreclosures in CT are most often vacant so you can move in almost immediately after buying the home. There's no waiting for the previous buyer to find another place to live or close on a new home.
So why isn't everyone buying foreclosed homes in CT? Foreclosures in CT can present some significant disadvantages, which are controllable, but only if you're an informed buyer before making an offer on a CT foreclosed home.
Foreclosures in CT Cons:
Liens and Liabilities: Foreclosed properties in CT can bear liens from unpaid taxes or liabilities affecting the title to the property. Buying CT foreclosures can be more expensive by creating additional paperwork. However, you can avoid these burdensome risks by doing research preemptively.
Previous Homeowners: Clearly the previous owner was unsuccessful if he tried to sell real estate in CT and if the former owner of a foreclosed property in CT refuses to move out of the home evicting them will be your responsibility. Once again, advance research and working with a professional licensed CT real estate agent at Realty3 CT can fend off these situations.
Condition of the Property: Many foreclosures in CT are in great neighborhoods and in excellent condition, but others are rundown and show a lack of even small repairs due to the financial difficulties that the previous owners may have confronting. Repairs and renovation is welcomed when buying foreclosed fixer uppers in CT, but leaky roofs and septic tanks are not something you want to learn about after the purchase. A thorough inspection by one familiar with foreclosures in CT and REO properties in CT will help to avoid these types of surprises.
Different Buying Procedure: When you buy foreclosure homes in Connecticut you do so on an as is basis with no guarantees. With that in mind you must exercise extreme caution and work with a CT Realtor experienced in foreclosures in CT. With proper guidance, you'll likely find that the profit-making potential of foreclosed homes in CT is well worth the extra paperwork and possible risks.
Understanding the pros and cons of foreclosures in CT will assist you in finding your dream home and making a profit. Realty3 CT has experts on hand to answer any questions or concerns you may have about buying foreclosures in CT. Call us today or contact a Realty3 Carroll & Agosini CT Forclosure Specialist.
Some Real Estate terminology might be helpful as you become more familiar with Foreclosures, Short Sales and REO’s.
FORECLOSURE is a legal proceeding in which a mortgagee, or other lien holder, gets a court ordered termination of a mortgagor‘s equitable rights. Commonly, the mortgage is a default in payment of a secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs. It is typically stated in way like “the lender has foreclosed its mortgage or lien“.
SHORT SALE in CT real estate is a sale of real estate where the proceeds from the sale fall short of the balance owed on the loan. In a short sale, the bank or mortgage lender agrees to discount the loan balance due to an economic or financial hardship on the part of the mortgagor. The home owner/debtor then sells the property for less than the outstanding balance, and turns the proceeds of the sale over to the lender. The amount the lender receives sometimes satisfies the debt in full, but more frequently a balance remains as a liability to the borrower.
REO or REAL ESTATE OWNED is a class of property owned by a lender, typically a bank, after an unsuccessful sale at a real estate auction in CT. If the bank is able to sell the property through a short sale or at a foreclosure auction, then the property will not become a REO property. When there are no bidders interested at a foreclosure auction the bank legally repossesses the property. When this happens, the bank lists the property on its books as REO – Real Estate Owned. The bank then needs to determine the amount of equity that the property has and this is done by a Broker Price Opinion BPO or an order an appraisal. The bank decides to either attempt a short sale or allow the property to go through the foreclosure process based on the BPO amount.
For more information on real estate forclosures in CT,