5 Ways to Prevent Foreclosure on Your Home
Are you at risk of foreclosure? Asking the question: “Who will buy my house or should I sell my home for cash?”
When a homeowner falls behind on their mortgage payments, they can face a number of negative consequences. There are many reasons why homeowners might decide to foreclose on their house. One of the most common reasons, however, is simply because they cannot afford their mortgage payments. The foreclosure process can be overly complex and has the potential to become a crisis– unless dealt with properly. So if you are currently having trouble paying your mortgage, or you’re seeking home buyers, here are the top 5 tips for preventing foreclosure on your home.
1. Deed in Lieu of Foreclosure
The term “deed in lieu” refers to the document that transfers ownership to the lender when foreclosure occurs. A deed in lieu of foreclosure is a legal option that allows homeowners to give back the rights of ownership over their property to the lender and allow them to regain possession. And a great option instead of attempting to sell your house.
It’s an interesting financial strategy for those who are facing the possibility of foreclosure and want to explore other options rather than allowing their home to go into foreclosure.
2. Claim Forbearance
Once you’ve determined how much time you need to make the payments, ask the lender if they would accept forbearance instead of foreclosure. This could be a good alternative over immediately looking for a home buyer, as it offers a more immediate solution.
Forbearance allows you to stop making payments for a period of time while continuing to make interest-only payments on your mortgage loan for this period of time. The lender will charge an interest rate based on their current agreement.
This is an option that mortgage lenders are required to offer by law. It allows borrowers who are having trouble making their mortgage payments to get assistance from their lender instead of losing their home.
3. Repayment Plan
One of the best ways to avoid foreclosure is through a repayment plan. A repayment plan is an alternative to a loan modification and can help you reduce your monthly payments and get back on track. A repayment plan will vary depending on your individual circumstances, but it typically involves making smaller monthly payments over a longer period of time than the original loan term.
While this may seem like another form of debt, it’s really more of a means for you to get out from under the crushing weight of owing more than your home is worth without losing your home altogether.
4. Short Sale
A short sale is a popular method to prevent foreclosure and it involves selling your house for less than the mortgage balance. The short sale process starts with the borrower notifying their lender that they want to pursue this alternative to foreclosure. This notification begins a 120-day clock during which time both parties must work together to determine if a short sale can be arranged or if it will proceed toward foreclosure.
Once the lender gives permission, the borrower has 30 days to find a home buyer. This can be a great option if you can sell your home fast and that is where cash for homebuyers can be a great option!
5. Sell Your House for Cash to House Guys USA
We buy houses in Kansas City and the easiest way to prevent foreclosure is to get cash for your house.
This method of selling brings in the most cash, with the least amount of hassle. Selling your home as a way to stop foreclosure will enable you to sell without making any major repairs or renovations.
It also gives you time to find another place to live, rather than being forced out immediately while still allowing for a quick sale. This option is perfect if you are ready for a change and can afford something else instead of staying where you are at this time.
Act Fast When You Are Facing Foreclosure
Home foreclosure is a stressful, scary, and overwhelming experience that we want to help you avoid. Whether you want to save your home or are just looking to sell quickly before it is foreclosed on, it’s important that you act fast. If you’re behind on your payments and facing foreclosure, the best thing you can do is to get in touch with a company that can buy your home from you quickly.
Schedule an appointment or learn more about House Guys USA and how we can help you with your situation. Please don’t hesitate, reach out today!