So your house is about to be foreclosed on, and you’re looking for any method to buy some time. Or, better yet,
You want to prevent the foreclosure from taking place in the first place.
You were expecting to find some alternatives to having your home foreclosed upon when you came across this page. And you’re absolutely correct!
You have options as a homeowner, and you don’t have to forfeit your home to the bank and walk away empty-handed. We’ll show you seven strategies to prevent your home from going into foreclosure, or at the very least buy you some time to get things in order.
But before we get into how to avoid foreclosure, it’s important to understand why it’s such a significant deal and how it could affect your future.
Foreclosure Will Have Some Difficult Repercussions
You may have been ignoring the problem up until now, but now the bank is on your tail, threatening to put your house up for auction. A part of you could even believe that if you just hand it over to them, you won’t have to deal with it any longer.
However, foreclosure can cause far more damage than simply losing your home.
Stopping a foreclosure will help you keep your credit. On average, going through foreclosure lowers your credit score by 200 points. You will also avoid having a record of house mortgage default, in addition to maintaining your FICO score.
You’ll save money on legal fees related to foreclosure. Legal fees related to foreclosure can cost up to $7,500 or more on average. Yes, there are costs involved in the entire process in addition to the loss of your home!
Almost always, the increased fees result in bankruptcy. This would only add to your already blemished credit and borrowing history.
This may appear self-evident:
If you simply pick up the phone and contact your lender (or answer the calls they will definitely make to you), you may discover the simplest solution to the problem.
What does this imply for you personally?
You do have some clout in this situation. You can talk to them and see what choices they’re willing to give you in order to get back on track.
The following is a little-known fact regarding lenders:
This may not be enough to protect you from going into foreclosure, but it will buy you some time. In any case, it’s a question worth asking!
This one is only useful in one situation:
Use your equity to your advantage:
If you’re able to make regular payments, but you’re still behind on your bills, this could be a lifesaver.
Listen to me out:
But be cautious!
Listing on the MLS can take much longer than you expect, and if you’re working with an agent, you won’t be able to discover other types of purchasers. Don’t panic if you’re on a tight deadline or don’t think the house will sell on the market.
There is another option:
Sell the house to a corporation that buys houses.
The following are the advantages:
These are just a few of the numerous advantages of working with a real estate agent.
It also leaves you with some cash to assist you in taking the following steps toward financial stability.
You may have already received a Notice of Default from your lender. If this is the case, there is still time to sell your house before it goes to auction. Because the lender would sell the home anyway if it goes to auction, presenting an active buyer is more likely to get authorized because it saves them time and money. As a result, keep looking for a buyer.
If keeping your house is your first priority:
If you’ve filed within the previous seven years, this may not be an option, so go to someone who can help you figure out what options you have.
PS: This is not a legal advice, please seek a professional. This is for informational purposes only.
For information on foreclosure defense call us at (877) 399 2995. We offer litigation document review support, mortgage audit reports, securitization audit reports, affidavit of expert witness notarized, and more.