Reasons To Sell
For anyone who’s facing foreclosure, the financial stress has likely been building for months. The critical time window for selling your home once the lender starts the foreclosure process is 120 days from the date you go delinquent. If you’ve tried a loan modification or a refinance and can’t make it work, selling before foreclosure could be an answer to this stressful problem.
Not being able to pay your bills is incredibly stressful. The process of losing your home to foreclosure can make it impossible to maintain good health. It can be hard on your relationships and may even be damaging your marriage or the mental health of your children.
Culturally, we put a lot of pressure on the process of home ownership. However, people who lose their homes to fire, flood or tornado find that, as long as their family survives, the loss of a house is not the end of the world.
It’s important that you face your potential foreclosure with the same mindset. You and your family will survive this experience and may even be stronger for it. Once you embrace your loved ones and focus on getting through this together, having to sell the house will be much easier to bear.
Stop Spending on the Property
If you’ve made improvements in an effort to market your home, it’s time to stop. If a foreclosure is coming your way, you need to sell to Kansas City Homes Offers in “as is” condition. Save your ready cash for your move, a deposit and first month’s rent at your new place.
Clean the house as best you can, tidy up the yard and get it ready for viewing by buyers with ready cash or fast access to financing. You need to be able to close within that 120 day window to protect your credit and your sanity. Be aware that you may end up facing a short sale, especially if you’ve been trying to update the house but are caught in the midst of a renovation.
Salvaging Your Credit
f your house goes back to the bank in foreclosure, your credit rating will be impacted for seven years. It won’t be impossible to get another house in that time, but you may face
- problems with renting a home
- higher insurance rates
- challenges getting a credit card
If you can Sell Your House Quickly Kansas City for the remaining balance of your mortgage, you can avoid this hit to your credit. Be aware that if you have to negotiate a short sale, you can also face a credit hit of up to seven years.
However, once a short sale goes through you can immediately start bringing that credit score back up because you’re not under the burden of a regular mortgage payment. To rebuild your credit, focus on making payments on time, even if it’s only the minimum. Do your best to rebuild your emergency savings for your own peace of mind. Close credit cards with annual fees but keep others open to increase your credit availability, but don’t use them.
The lessons of a foreclosure or a near foreclosure can be helpful once you’ve moved past them. Like a lot of other really tough experiences, they’re horrible as you move through it, but what you learn can help you over the course of your life.
Selling your home to an investor can
- quickly get the debt out of your name
- allow you to move immediately
- let you look forward, not back
Take stock of what you do own. Could you downsize your current possessions, sell things you don’t need, and rebuild your savings? It may take a while to feel emotionally prepared to buy another home. Demonstrating that you’ve made the necessary life choices to afford another house and have rebuilt your credit will improve your odds of getting another mortgage.
The benefits of selling to a real estate investment company are multiple. You can stop spending on improvements to the property. One of the challenges of selling to an owner-occupant who has qualified for an FHA mortgage is that the house has to pass a number of inspections. Investors have sources of funding that allow them to buy houses that need work, which can take the burden off the seller. Sell the property, get the loan off your credit and the stress out of your life. Regroup and move on. Contact Kansas City Home Offers for a conversation.