When faced with threatening letters from the bank and a need to stop foreclosure, homeowners have a number of options. Whatever you decide to do, though, it is important that you act fast and that you are realistic and honest about your financial situation. It is easy to make mistakes that will leave you in a worse position than when you started and potentially lose your home.
The main ways to stop foreclosure homeowners have access to are:
Short Sale
If you owe more on your house than the property is currently worth, then one option to stop foreclosure residents can use is to do a short sale on their property.
Many lenders will accept this because even though they stand to lose money that way, they will lose less from a short sale than they would if they foreclosed on your home. If you really cannot pay back the loan and you are in negative equity then a short sale is an option.
Loan Modification
If you want to stay in your home and you are in a position where you can make payments but you are just slightly behind, then loan modification is an option for you. If you want to pursue loan modification then you should act quickly and work with a loan modification expert so that you can have the best prospects for your negotiations. Be aware that there are many scammers that make exaggerated claims about their ability to negotiate and you should tread carefully to ensure that you do not get ripped off. A successful loan modification will allow you to stay on the property. It is important that you keep up with the repayments after the modification though, to ensure that you are not put at further risk of losing your home.
Sell Your House for Cash
If you have some equity in your property and you are willing to sell your home, a cash sale is a good third option.
There are many home buyers that will purchase your home quickly, for cash, with no surveyor’s fees, commission, or other charges tacked on top. They will offer a fair cash price for your property and allow you to unlock the equity quickly so that you can pay off the mortgage and avoid foreclosure.
If you’re not sure what your home is worth, but you are willing to sell, then getting a free, no-obligation quote from a cash buyer could be a wise move. You will be able to figure out where you stand and potentially avoid foreclosure and then move to a smaller property with more affordable payments.
Do not bury your head in the sand. The sooner you act, the easier it will be for you to avoid foreclosure, and the more options you will have open to you in terms of whether or not you need to sell your property or whether you can continue to stay in it. Act today to get the best results.
