Foreclosure can be a difficult and frustrating process. Not only will you lose your house, but you will also lose your pride. It can be difficult for anyone to handle. But what you need to know is that it happens to people all the time. You are not the first person going through it, and you certainly won’t be the last. The good news is, that if you are still in possession of your house, there are some things you can do to stop the bank from foreclosing. But first…
Why Do Banks Foreclose?
Banks begin foreclosure when you’ve missed on several of your payments. This can happen to everyone and the reasons are many. They include loss of job, divorce, the death of the loved one, new addition to the family, health problems and many others. The last thing you need after going on through such a troublesome time in life is to lose your house. If you aren’t able to repay your debts, the bank will foreclose on the property and resell it at an auction so they can return their money.
What You Can Do To Stop It
Find A Buyer… Quickly
When you sell your house, the foreclosure process will stop in its tracks. You can try to find a buyer who can close quickly on your own, or you can call Sparks Property Investors LLC, who will always pay you a fair and honest price for your ]market_city] house. If you sell on your own, to a buyer using financing, the sale could end up taking weeks or months to be finalized, and by then, the bank may have already foreclosed. With a direct sale to Sparks Property Investors LLC, you will typically be able to sell your house in only a few short days.
If you owe more than the house’s worth is estimated at, a short sale might be a good solution for you. A short sale happens when both the homeowner and the bank agree to sell house for less than what is owed. The bank will accept this if the home has dropped in value and the homeowner can’t make the payment in due time. This way, the bank will rather take back the big portion of what is owed than going through the long and unsure foreclosure process. Also, a short sale will look much better on your credit report than foreclosure. This is a good way to stop the bank from foreclosing, and also to keep yourself from a new debt.
Work Out A Deal
Once you realize you are having problems with your mortgage payment, you should first give bank a call. They would rather work with you than going through the foreclosure process. Ask them to change the terms of your loan or to modify them. You might be able to lower your monthly payments. If you have missed several payments, try finding a way to return the debt in due time. Most lenders will agree to forbearance, or to forgive the missed payment and to add it on the end of your loan term. Don’t make any drastic measures before going to the lender first. They are used to situations like this and will most likely find some solution for you as well.
File For Bankruptcy
If you file for bankruptcy, the lenders cannot attempt to collect payment until the court allows it. Make sure you choose the right type for your needs, Chapter 7 or Chapter 13, and that you have talked this through with an attorney. Filing for bankruptcy can have adverse effects on you and your credit for years to come.