How To Stop Foreclosure?
Until 2020, foreclosure cases reached a million annually, sometimes even more. However, the Department of Housing and Urban Development has established an artificial moratorium until the last day of this month. Nevertheless, this only applies to single-home families purchased with a federally backed mortgage. Learn more about what foreclosure is and how to avoid it.
Foreclosure is an action by the lender that seizes the property and sells it to recover the money that a homeowner did not pay as a mortgage during the last 120 days or more. Foreclosures can be avoided by acting fast at the time of pre-foreclosure. Spoiler: it is better to sell your house to home buyers as they are ready to give you cash offers.
Ways To Avoid Foreclosure
Pre-foreclosure occurs when lenders send a formal warning to the homeowner who has been missing payments that their property will be seized if payments are not brought up to date. Here is a list of ways to avoid foreclosure:
- If possible, keep your payments up to date. This will prevent any legal issues with the landlord or the lender. There is nothing better than having peace of mind when having all of your monthly debts paid.
- Talk to the lender or landlord: Communication is critical. It is best if you do it before you start missing payments. Talk to them as you may reach an agreement regarding a payment plan or modify the loan.
- Sell your property: This might be your best option. By selling your property to home investors, you might be able to satisfy the mortgage debt and look for a new home. Home investors usually give cash offers and provide a fast selling-buying process. This might not affect your financial credit.
- Bankruptcy: You can choose to file for bankruptcy, allowing you to repay your debts while others may be wiped out. However, it is not recommended that your financial credit be crushed by it, especially as it is hard to recover.
- Deed in lieu: You can hand over your home to the lender, avoiding foreclosure with the chance of ending on good terms with the lender. This gives you a chance to at least save some money.
Kansas City Home Offers Is Ready To Help You
Kansas City Home Offers is a home buying company ready to offer you a fair cash offer for your foreclosure home. With no commission fees and a fast buying-sell process, you will find the relief your family needs. Contact us and get a free quote.