What to Do When Facing Foreclosure
More than 2.8 million properties in the United States were sent with a foreclosure notice or notice of default in the past years. If you are in danger of facing foreclosure, it is not the time to fret because there are things that you can do to deal with it so that you don’t have to entertain the idea that you have to “sell my house fast” to pay off your mortgage debts.
It is important to take note that foreclosure takes time to take effect depending on how fast your mortgage lender acts. You start receiving the foreclosure notice once you miss several mortgage payments. And even if the house becomes auctioned, the auction may never happen especially if a buyer does not materialize. The process of foreclosure takes a long time thus giving you enough time to find solutions to your problem. Thus, this article will discuss what to do to deal with foreclosure effectively.
Seek Help When Facing Foreclosure
The most important thing you need to do is to seek help. Foreclosure is something that you should never face alone. You need professionals to help you deal with your financial troubles as they can help you negotiate with your lenders so that you will not have to “sell my house fast.” This is especially true if you don’t want to give up your house.
Calling a foreclosure avoidance counselor should be your top priority. The counselor should be approved by the US Department of Housing and Urban Development. They can help you understand the foreclosure laws in your state as well as discuss foreclosure alternatives. They can also help you organize your financial documents as well as represent you when negotiating with your lenders. Foreclosure avoidance counselors are free of charge so be wary of those who pose themselves as such but are just offering foreclosure rescue scams.
Professionals can help negotiate with the mortgage lender a new payment plan. It can be to lower the mortgage payment or extend the payment period of your home. Whatever you do, make sure that you don’t deal with foreclosure by yourself because there is a lot of technical stuff that you need to deal with that you might not even understand.
Let Your Lender Know That You Sought Help from A Counselor
If you do not want to “sell my home fast” and lose it to foreclosure, seeking help from a counselor is your best option. According to surveys, homeowners who seek help from foreclosure avoidance counselors are twice more likely to avoid losing their homes than those who didn’t seek help. Moreover, they are likely to get loan modifications or reduce their mortgage payments.
However, when seeking help from a counselor, it is essential to let your mortgage lender know that you are working with one. This will definitely put the odds in your favor as most lenders will have the impression that you are serious about resolving your foreclosure problem.
Organize Your Paperwork
Organizing your paperwork will also help you when facing foreclosure. It will also help your housing counselor plan the best course of action if you have all the documents ready. The documents that you need to prepare would include the following:
- All kinds of communication sent by your mortgage lender
- Foreclosure notices or sheriff’s sale complaints
- Two recent mortgage statements
- Home insurance policy
- Two recent tax returns of people listed on the mortgage
- Bank account statements for the past two months
- Proof of income (if any)
Ask Lender for Alternatives to Foreclosure
Some homeowners do not know that there are alternatives to foreclosure that mortgage lenders can accept so that facing foreclosure is not such a harrowing experience. The most practical option that will allow you to keep your home is the loan modification program wherein the lender will agree to a reduced monthly payment.
The modification can lower your interest rate or change your loan from fixed to adjustable, eliminate past balances, and extend the term of the loan. Another option that you have is forbearance that temporarily suspends payments until you are able to have better financial status to pay your mortgage debts.
If both reduced payments or forbearance are not possible in your case, your best option when facing foreclosure is to turn your home to your lender before the foreclosure is completed. But this will put your credit score in a difficult standing as it will decimate it and will make it harder for you to purchase another home in the future. Although the foreclosure record will disappear after seven years, not everyone has time to wait such a long time in order to purchase a new house again.
Sell My House Fast on A Short Sale
If all the other options are not possible for you when facing foreclosure, it is possible to deal with it by putting up your house on a short sale. Note that mortgage lenders do not like foreclosure because it gives them a lot of legal and financial headaches. Suggesting a short sale will likely be a good idea. A short sale is when you “sell my house fast” for less than what you owe to the lender.
Agreeing to a short sale is a desperate move that lenders take. But instead of selling your house at a lower price than its market value, you can seek help from professional house buyers. Professional house buyers like SellQuickCalifornia can provide you with cash for your house. If you want to “sell my house fast,” seeking help from us is the way to do it. We can assess your house to its current market value despite its location and condition so that you can get a fair price.
As the owner of the house, a short sale (without the help of the professional house buyers) will leave you with almost nothing to start anew. All the money generated on the short sale will be used to pay the mortgage debts and other related costs. However, seeking help from professional house buyers will give you a better leverage because you can earn more from selling your house to pay off your debt and still have more leftover to pay for a new small house.