Foreclosure Freeze for Connecticut Homes
Last month Fannie Mae and Freddie Mac announced a 90 moratorium on foreclosure sales and evictions for struggling Connecticut real estate owners in those areas hardest hit by super-storm Sandy. Now the two giant government mortgage agencies have announced a new ‘foreclosure’ halt for the holidays for all owners of CT Homes. However, it is critical for struggling local borrowers to recognize that this is actually only a freeze on actual evictions from December 19 through to January 2nd, not a halt on the foreclosure process as a whole. Additionally, this only applies to those whose home loans are being held by Fannie Mae and Freddie Mac, so not everyone can relax. It is also absolutely essential for underwater CT home owners to realize the serious penalties of delaying getting help to avoid foreclosure. With short sale incentives over in a couple of weeks the dramatic tax bills for those who wait and missing out on receiving thousands to relocate will hurt. This doesn’t necessarily mean homeowners have to move and be out of their homes before the holidays but it does mean they need to strike a deal and contract to sell their CT homes by the end of the year. Another unexpected sucker punch to local borrowers which has yet to hit is a coming rise in property taxes in the wake of Sandy. It is anticipated those still staying in hard hit cities will be forced to pay higher property taxes to help with clean up and to make up for the loss in tax base from destroyed homes. Those holding onto properties here may find relief in reduction on property taxes if their homes have suffered severe damage or tax bills are outdated and don’t reflect current values but this also requires property owners to take a proactive approach to appealing their bills.
A new ‘foreclosure freeze’ is being announced for some CT homes but make sure you have all the details before thinking you can just kick back and relax with that turkey dinner, without having to worry about the eviction crew knocking on the door.