When you find yourself staring into the abyss of foreclosure, don’t turn a blind eye. Here’s how to avoid foreclosure.
Can You Stop Foreclosure Once It Starts?
If you are in a situation where your mortgage payments have become an issue and the bank has started sending notices, take this as a warning to get on top of it. In many cases they wait until after 30 days before issuing foreclosure proceedings but if not handled promptly, that will be one huge dent on your credit report. Here we will go over ways to stop a foreclosure once it starts, and show you when it is too late to stop foreclosure. Our main advice would be to tackle it head on as soon as possible, and you’ll be able to get out unscathed.
If you need to know more about foreclosure, we can help. Contact SellThatHome if you want us to buy your house and take away the hassle of selling it quickly. We’ve helped many homeowners with a similar situation as yours when they contacted us for cash for houses. There’s no need to get tangled in extra loans to stop foreclosure, that may overcomplicate your financial situation down the line even further. Reach out to us, and we’ll get you a fair fast cash offer and guarantee a quick close.
Contact Your Lender
In a foreclosure workout, you will sit down with your lender and tell them that you don’t think you can pay your current mortgage obligation. But, would like to negotiate the payment so that you could still pay the mortgage and stay in the home.
Contrary to what you might think, lenders want to avoid foreclosure too! They are willing to work with homeowners so they can be happy and pay their mortgage every month. This could include a temporary reprieve from your monthly payments. Or paying the outstanding amounts over time so that homeowner has enough money in bank account each week/month until all of these obligations have been paid off.
Look Into Government Resources
Contact your state to learn more about the foreclosure time frame you are dealing with. When you compare that information with what letters or other communication from your lender, this will determine how quickly you need to move in order secure a strategy to avoid foreclosure.
The Federal Government’s Housing and Urban Development department has a plethora of programs that may offer you salvation. A lot of these programs are determined by your home’s value versus how much is left on the loan, or if it will be sold with an auction to cover any outstanding balances owed. Counseling services exist as well for anyone who needs help understanding their financial situation and what options they need to take into consideration which ones would work best in order to get back up on their feet again.
Set a Limited Budget
Don’t let your personal finances get you down. If you are feeling the financial pinch, here’s how to avoid foreclosure: take a look at what is really important and design an affordable budget that accommodates those essential needs. Necessities such as food, gas for commuting to work or school, mortgage payments etc., then cut out any unnecessary expenses.
Be sure to do your own grocery shopping – it is infinitely cheaper than going out for your meals. Other unnecessary expenditures could include but is not limited to expanded cable plans, or high-end Internet service plans. Work with your credit card company and other lenders to work out delayed payment options.
One of the creative ways to avoid foreclosure is renting your home out. Your renter’s monthly rent payments will be able to fund your mortgage and any remaining insurance costs. This will allow you to build enough savings to find somewhere more affordable for you.
You could also rent out your home and have a roommate share it with you. Depending on the amount of your mortgage payment, they might be able to pay most or all of it which would make things more affordable for both parties involved. On the other hand, by renting out your house some potential headaches may arise such as damage done to property.
Bankruptcy Is An Option
Sometimes, filing for bankruptcy is the best option to avoid foreclosure. You may think that it’s an extreme measure but when you file for bankruptcy your creditors won’t be able to collect on any of those debts.
Filing for bankruptcy is a drastic measure, which could require you to sell off some of your possessions in order to pay back debt. What’s worse is it could stay on your credit score and prevent you from getting loans. So, bankruptcy is an option, but we recommend exhausting all other options before considering this.
Avoid Foreclosure with a Short Sale
The most simple way to avoid foreclosure is by tackling it head-on with a short sale. There are lots of investors waiting for short sales, and this is where banks will negotiate an acceptable price before selling your house at its current market value.
The bank does not want to hold on to your home. They will usually take an offer that is close to what’s left of their loan balance. This opens up an investment opportunity for buyers with cash-in-hand. Have you been searching for a way to sell your house? Well, we at SellThatHome will get the job done. If you want to avoid foreclosure with an easy & quick sale process with minimal fuss or hassle then just give us a call today at (407) 228-3682.