How to Avoid Foreclosure
Homeowners never plan on being delinquent on their mortgage payments.
Yet millions of Americans have lost their homes to foreclosure.
If you find yourself in the foreclosure process, don’t lose hope!
You can take steps that will help, and understanding the process is critical. You can learn about solutions to potentially bring you out of foreclosure. These resources are a great place to start. Don’t sit back and wait for someone to come to your rescue. The key is to take action immediately.
Why People Default on their Mortgages
Homeowners default on mortgages for many reasons. The most common reasons for foreclosure are:
- Sudden unemployment
- Death in the family
- An inability to pay an adjustable interest rate that increased
Ways to Stop a Foreclosure
Mortgage lenders actually prefer not to initiate foreclosure proceedings. However, to stay in business they must protect their assets, which includes your home. Clearly, the best solution for all parties would be to avoid this process altogether so if you expect you won’t be able to make a payment, don’t be embarrassed or ashamed, or think you’ll just pay extra next month. A single missed payment can be a signal to a lender that there might be a problem. Instead, call your lender immediately to discuss some possible resolutions.
In the event your lender won’t work with you, there are other options to stop the foreclosure proceedings. You must act quickly and really do research to know which option is best for your situation. Five Star Properties can evaluate your situation to see how we can potentially help you avoid foreclosure altogether.
1. Sell Your Home
Connect with an experienced real estate agent who is familiar with the home prices in your area to get an accurate market analysis. They can advise you on whether it makes sense to sell your home for cash.
2. Ask Your Lender About a Short Sale
If your home is worth less than what you owe on the loan, this may make you a candidate for a short sale. In such cases, your realtor negotiates with the lender to determine whether they might take less than the full amount due on the loan.
3. Sign a Deed-in-Lieu of Foreclosure
This means the homeowner signs the deed to the home back to the lender, which closes out the loan and stops foreclosure proceedings. While this affects your credit score, you may be able to negotiate terms to remain in the home or rent the home for a lower price until the home is sold.
4. Chapter 13 Bankruptcy
If other avenues fail to prevent a foreclosure, homeowners can file Chapter 13 bankruptcy. This puts a stay on the foreclosure, which means creditors are legally bound to stop their collection efforts. Homeowners should be aware there are some exceptions and retain the services of an attorney to explain the legalities.
5. Five Star Properties helps property owners just like you, in all kinds of situations, from divorce, foreclosure, death of a family member, burdensome rental property, and much more. We buy houses in Desoto and areas surrounding Dallas Fort Worth, so you can easily sell your house fast.
If you want to stop the hassle of owning that house, skip waiting months to sell a property the traditional way, and avoid paying fees and commissions, contact us. We’ll sell your house fast for cash. Please talk with us BEFORE submitting your property information by calling us today at (972) 532-7355. Visit our website for more information.