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Foreclosure is a legal process that a lending institution or mortgage company performs to obtain ownership of your home, or in other words, a repossession of the property. There can be a number of reasons that can cause a foreclosure process, and on the contrary, a few ways to avoid it. Your next question is likely, “How can I save my house from foreclosure?” First, let’s look at why you may be facing it, and then, we will discuss how to avoid.
The most common reason people end up facing repossession is failing to make their mortgage payments on time. Foreclosure is the legal way the lender can get their money back. The problem is the result of the process is you having to move out of your house, and/or in some cases face eviction. What’s worse, is you could end up still owing the mortgage company if the deficiency can’t be made up by the sale of the property.. which can include garnishing your wages, etc.
Your most obvious question is “Can I save my house from foreclosure?” ..and the answer is that there may be some ways of avoiding foreclosure. It will depend on whether or not the state you live in is non-judicial or a judicial foreclosure state. Lenders will use one of these two approaches to take back possession of the house.
There are some options you have before the process gets started. To answer your question of “how can I save my house from foreclosure,” let’s look at some of the steps to avoid the process entirely.
If you want to know how to stop foreclosure, there are several options available. Some are faster and easier than others, and some are difficult. Look through these choices, and decide which one is the best for your specific situation.
Depending on how far behind you actually are on your house, your lender may be able to help you. In some instances, they may be able to adjust the loan. They may be able to help in a number of ways, such as:
If your house is due to be sold in a short time, filing for bankruptcy might stop the sale. An automatic stay goes into effect when you file. However, if you are already in the process, a chapter 7 bankruptcy will not prevent from being foreclosed on in most cases. It will, however, give you some time to talk with your lender about possible options, if you haven’t discussed a load modification option already. Bankruptcy is never recommended if you have less than about 50K in debt and less than 2 homes to your name. If the problem you are trying to solve is losing your house, bankruptcy is not a solution because in the end you will lose it anyways. Also, if you are trying to avoid foreclosure to keep your credit clean, filing bankruptcy is more or less just as bad. Last but not least, if you are not approved for a loan modification and you continue to stretch the amount of time you stay in your house, an investor will more than likely not offer to buy your house cash because the longer you stay in your house, the less sense it would make for an investor.. since technically, every day that goes by, you are racking up interest, fees, etc., and all of this eats into your equity if you have any.
An investor will offer you a cash price for your house. If you accept it, they will buy your house as-is for cash.
The foreclosure process can be long and difficult. It can be hectic and discouraging. There can be some distinct advantages to selling your house for cash, especially those who are asking, Can I save my house from foreclosure? Here are the specific benefits you will enjoy.
Each situation is different and has various elements. In very few instances, a lender may re-negotiate the terms of a loan. It’s always worth the try, but if you are already behind on your mortgage payments, it’s not likely. Bankruptcy might help a few people, but it will mar your credit for at least 7 years and still cost you your house in the end. For most people, selling to a cash buyer is the best option. It’s simple. It’s easy. It’s fast. And it’s done. They will offer you a fair price, you accept the offer and then they will take care of all the paperwork as well as fees. There is far less worry involved, you have no expense and it’s done in a very short amount of time saving you the headache of suffering through the foreclosure process.
We understand that facing foreclosure is a scary and stressful time for you. That’s why we’re here to answer any questions you might have about the foreclosure process. At Cedar’s Investment Properties, we’re here to help you. Ready to sell, or just have a question? Give us a call at (954) 774– 8506. We’ll give you a no obligations cash offer to help you stop foreclosure in its tracks!