Options For Distressed Homeowners

What Should I Do If I’m Behind on My Mortgage in Connecticut?

If you are behind on your mortgage payments in Connecticut, contact your mortgage servicer as soon as possible to ask about loss mitigation options that may be available. Depending on your circumstances and loan, these could include forbearance, a repayment plan, loan modification, refinancing, or selling the property. Connecticut homeowners may also be eligible for foreclosure mediation and can seek assistance from a HUD-approved housing counselor. If you have received foreclosure papers, consider speaking promptly with a Connecticut attorney about your rights and deadlines.

Common Questions   |  Sell The Property   |    Last Resort   

If you're having trouble making your mortgage payments, act early. Contact your mortgage servicer to discuss available options. Connecticut homeowners may also obtain free assistance from a HUD-approved housing counselor and may qualify for Connecticut's Foreclosure Mediation Program or other state resources. If you've been served with foreclosure papers, consider speaking with a Connecticut attorney promptly. Connecticut Department of Banking - Avoiding Foreclosure

Stay In The Property

1. Contact Your Mortgage Servicer Early – If you are having difficulty making your mortgage payments or have already fallen behind, contact your mortgage servicer as soon as possible. Depending on your loan and circumstances, you may have options to bring the loan current or obtain mortgage assistance. Do not ignore notices or legal papers from your lender or servicer. Acting early generally gives you more time to understand and evaluate the options that may be available to you.

2. Refinance – Depending on your financial circumstances, available equity, credit, and loan eligibility, refinancing may be an option. A new loan could potentially replace the existing mortgage, but qualification requirements and available terms vary. Homeowners should speak directly with a qualified lender or mortgage professional to determine whether refinancing is available and appropriate for their situation.
 

Loss Mitigation Options

Loss mitigation refers to options a mortgage servicer may offer to help a homeowner address missed payments or avoid foreclosure. The options available depend on the type of mortgage, the loan servicer, the homeowner's circumstances, and applicable program requirements. Homeowners should contact their mortgage servicer as early as possible to learn which options may be available to them.

Depending on your loan, mortgage servicer, and individual circumstances, options that may allow you to remain in your home can include:

1. Forbearance – A forbearance agreement may allow you to temporarily pause or reduce your mortgage payments during a period of financial hardship. Forbearance does not eliminate the amounts you owe, and repayment arrangements vary depending on the loan and servicer. Ask your mortgage servicer what will happen when the forbearance period ends and how any missed amounts will be handled.

2. Repayment Plan – A repayment plan may allow you to catch up on missed mortgage payments gradually by adding an additional amount to your regular monthly payment for a period of time. The terms and availability of a repayment plan depend on your loan, servicer, and financial circumstances.

3. Loan Modification – A loan modification changes one or more terms of your existing mortgage in an effort to make the loan more manageable. Depending on the loan and available program, a modification might involve changes to the interest rate, loan term, monthly payment, or treatment of past-due amounts. Eligibility and terms vary, so homeowners should work directly with their mortgage servicer to determine whether a modification is available.