Does the word foreclosure give you the chills? Foreclosure can bring fear and dread to any one hearing it. Let’s face it no one wants to lose their house after they have put their time, effort, and resources into buying one. The one thing that is for sure if you fall behind on your house payments you will eventually enter foreclosure. This can be a scary time for many but don't worry here are 5 tips you can use to help stop foreclosure on your property.
Tip 1: File for Bankruptcy Filing for Bankruptcy is a way to stop foreclosure dead in it's tracks. With the bankruptcy submitted, the mortgage companies hands become tied. As soon as the news reaches the lender that you have filed for bankruptcy, the foreclosure process would be stopped immediately. This will give you the time to sort things out financially. The law requires that your lender, creditor, or the mortgage company to help you find a workable way to help you make amends and pay the necessary bills. Though bankruptcy may help you avoid foreclosure. It will affect your credit and future borrowing abilities. If you are worried or have questions about how bankruptcy would affect a foreclosure it's best to contact a lawyer to find out.
Tip 2: Sell your House in Short Sale This is the second step to stop a foreclosure fast. A short sale involves selling your home at a lower price then what is owed on the mortgage. In order to be considered a short sale, there needs to be 2 requirements met. The homeowner is unable to catch up on payments because of how far behind they are. The housing market has tanked and now the home is worth less then the remaining mortgage. A lot of times we see problems with short sales as the negative equity usually means that the home owner will have to pay out of pocket themselves in order to get the house sold. This also means that in situations where a potential buyer is requesting concessions you as the seller may not be financially able to meet these. The lender in a short sale has the final say so. As a result of this a short sale can be a wild unpredictable ride that may not end favorably for the seller. If you are considering a short sale to stop foreclosure call us up first so we can try to help. Tip 3: Apply for Loan Modification Another step that you can use is a Loan Modification. A loan modification changes the terms of your mortgage. This is generally done in situations of financial hardship. With a loan modification you are trying to reduce your monthly payment. This may mean that the lender reduces the payment or puts your amount owed on the backed of the mortgage (meaning you pay it at the end). The federal and state laws forbid lenders to continue the foreclosure process if a loan modification review is in processing. When you request for a loan modification, your creditor will begin a review on your account. This process usually requires tons of paperwork and documentation. Make sure you get this submitted well before the cut off date. Be warned. We have seen plenty of clients submit paperwork for loan modifications only to be denied. This may leave you with a very limited time to sell your home before the foreclosure date. If you are thinking about requesting a modification check with us first to so we may provide you a cash offer on your home as a plan b in case the modification does not work out.
Tip 4: Offer a Deed in Lieu A deed in lieu of foreclosure is a title transferring document. This transfer the homes title from the homeowner to the bank that has your mortgage. In a situation like this you are pretty much giving away your home to the bank and walking away with nothing. While this may sound like an easy way to get rid of a problem there are drawbacks to having a deed in lieu. A deed in lieu will affect your credit report. This may be equal to the severity of a foreclosure it's self. Unable to buy a home. Usually the waiting or turnaround period is about 4 years if you have one on your record. Liability Make sure that your deed in lieu releases you from having to pay the loan. There is no point in handing over the title if you still have a lender going after your finances. If you are thinking about doing a deed in lieu, check with us first. Chances are you can walk away with money in your pocket for your home rather than with nothing.
Tip 5: Sell to a Cash House Buyer With a cash sale on your home you are putting yourself in a pretty good situation. Avoid Negative Reporting On Your Credit This is a huge selling point if you have a job with security clearance. Fast Close Available Traditional sales require 30 days plus in order to get the deal done. We can close in as little as Money in your pocket At Keller Home Solutions we will do our best to make sure that you walk away with as much money in your pocket as possible. Avoid the headache of repairs. We want your house as is and will not ask you to repair or replace a thing. Avoid Realtor Fees With a traditional sale you may lose as much as 9% on the deal. Depending on the amount of equity you have in the home this may make you upside down on the sale. At Keller Home Solutions we handle all closing costs and fees which means you keep more money from the deal.
In closing foreclosure is a difficult time and a subject a lot of people don't want to talk about. The reality is though if you don't formulate a plan you will lose your house. If you have any questions about what you can do to stop foreclosure or would like a cash offer on your Austin home call Keller Home Solutions Today.