Dealing with the threat of foreclosure can be extremely overwhelming. The thought of losing your house after dedicating so much of your time and energy can cause most families untold amounts of stress.
Plus, that’s not to mention the ugly marks it will leave on your credit.
Nobody Wants To Deal With Foreclosure…
That’s why we’re going to use today’s post to explain some of the ways you can avoid it!
Call Your Bank
Most lenders would rather work with you and get back to receiving monthly mortgage payments on time than enforcing foreclosure. Too many homeowners fail to realize that banks don’t actually want to foreclose your home. It’s a costly and time-consuming process that, in many cases, leaves the lender with a loss.
That’s why the trick to avoiding foreclosure is to take action fast. When you first realize you won’t make this month’s mortgage payment, reach out to your bank. If you’re already behind on your payments, don’t panic. You might be able to work out a repayment plan.
However, if it looks like you’re going to struggle to make your mortgage payments no matter what you do, you may want to stall the foreclosure and sell the house while you still can.
Sell Your House
A fast sale of your house can help you to quickly pay off your mortgage without any negative marks on your credit. But don’t be fooled into believing an agent can help you secure a quick deal. No real estate agent in Miami can guarantee how long it will take to sell your home. It could take months, forcing your bank to foreclosure on the house while it’s still listed.
If you decide to sell, it’s best to work with an investor or direct buyer! For instance, a direct sale to our team at Sunshine State Buyers will allow you to sell your house quickly and for a great price. By working with our team, you can choose a closing date that works best for you and sell your house outright before the bank comes knocking. Our process is fast, convenient, and always fair!
Use A Short Sale
Another way to sell to avoid foreclosure in Miami is by using a short sale.
A short sale in real estate is when a financially distressed homeowner sells their property for less than the amount due on the mortgage. The buyer of the property is a third party (not the bank), and all proceeds from the sale go to the lender. The lender either forgives the difference or gets a deficiency judgment against the borrower requiring them to pay the lender all or part of the difference between the sale price and the original value of the mortgage.Investopedia.com
To do this you must apply to your lender’s short sale program and meet the necessary requirements. You’ll need to run a BPO or Broker Price Option, to help you determine the fair market value for the property.
Just because we’ve listed bankruptcy as an option here doesn’t mean you should run to the bank and irrationally declare bankruptcy without thinking it through.
When you declare bankruptcy, the bank will be forced to stop any collection activity against you, including the foreclosure of your home. That’s the only reason it’s listed here as a foreclosure prevention measure. It stops foreclosure, but you will still be responsible for your debts. Plus, don’t forget that declaring bankruptcy will negatively affect you for years, making it far more difficult to borrow money in the future.