When the threat of foreclosure looms over your home, it can almost feel like staring down the barrel of a loaded gun. A thousand questions may be running through your head. Will my family and I ever recover from this? What missteps lead me to this situation? Can I get my house back after foreclosure? The most important to consider is, “What are my options?” But amidst all this financial turmoil and emotional upheaval, you can take measures to regain control of the situation or prevent it altogether if you are not personally experiencing the threat of foreclosure.
What is Foreclosure
Understanding what foreclosure is and what happens when your house goes into foreclosure is essential. By gaining this knowledge, you can make informed decisions and take the necessary steps to address the situation.
When you purchase a home, you typically don’t enter the sale as a cash home buyer. Instead, you usually secure a mortgage from a bank or financial institution. A mortgage is an agreement between you and the lender (the bank) stating that you will make monthly payments on the home for an extended period, usually 30 years. The mortgage rate can vary depending on factors like your financial institution, interest rates, home value, and credit score. It’s important to note that you are not just responsible for making these payments, but for making them accurately and on time.
Foreclosure usually happens because of unexpected financial problems, like losing a job, a natural disaster, an economic downturn, or too much debt. Your lender might give you extra time in Missouri if you’re not a significant risk. They usually offer a 10-15 day grace period, then start charging late fees and sending reminders for missed payments.
If you keep missing payments, the lender may send a Default Notice warning you about the consequences of not paying your mortgage. These consequences include a negative impact on your credit score and the lender seeing you as a risk. Missouri Revised Statute 408.554 dictates how and when the lender must give notice in the case of default. After receiving a Default Notice, you have thirty days to fix the problem. If you don’t, the lender will send a Notice of Sale, which they must publish in a local newspaper.
In Missouri, foreclosure typically follows a non-judicial process. This means the lender can proceed with the foreclosure without a court order if the mortgage or deed of trust contains a ‘right to sell’ clause. Upon receiving a Notice of Sale, the property will be auctioned off on the courthouse steps at the specified time and date.
You have several options to halt the foreclosure process. You can sell the property, bring your account up to date, redeem the property under Missouri law, or file for Chapter 13 Bankruptcy, which gives you up to 60 months to catch up on your payments.
What Happens When Your House Goes Into Foreclosure
Understanding the foreclosure process is crucial. After exploring all options and realizing there’s no guaranteed way to retain or sell your home, the lender will issue a Notice of Trustee’s Sale. This notice, published in local newspapers, announces an auction for your home. If no bidder meets the minimum, ownership reverts to the lender. The urgency of the situation is clear! You’ll need to find new living arrangements as eviction is inevitable. Moreover, a foreclosure can significantly impact your credit score, lasting approximately 7 years.
If your house is foreclosed, do you get any money?
This is a question that often arises when facing the possibility of foreclosure, and the answer can vary. When a foreclosed home is sold at auction, the proceeds are used to clear any additional fees or liens, as well as the mortgage balance. If the sale manages to exceed these debts, the surplus may be returned to the original owner. While it’s true that foreclosed homes are typically sold below their market value, there is still a chance for some financial relief for the previous owner.
Can you get your house back after foreclosure?
Settling your debts during the pre-foreclosure period leading up to the auction will grant you the best chance of reclaiming your home, but post-foreclosure, your ability to get your house back will depend on state laws. It is wisest to contact an attorney familiar with your state’s laws concerning foreclosure, but for the most part, yes, it is possible to re-purchase your property from the new owner. Some states provide the Right to Redemption, which states that you have several days to months to buy back your home at full price plus any additional costs incurred by the new owner. You may also be able to enter the auction yourself, which can result in a last-minute reclamation if you end up being the highest bidder. Again, discussing this with an attorney is crucial, as some states are more strict about this matter than others.
If you need tosell your pre-foreclosure house fast in Kansas City, we can offer you a fair price without the hassle and additional costs of a real estate agent. KC Home Buyer Group is here to help. We buy homes in any condition, taking on the heavy lifting so you don’t have to. Call us at (816) 744-5780 or visit our website for a free quote and take the first step towards a more secure future.
We have bought Kansas City houses for cash since 2015, in every condition and at every stage of every timeline. Fair offers, plain answers, and we will tell you if selling to us is the wrong move.
