Is your House in Foreclosure?
Facing foreclosure can be a very rough time for a homeowner. But, foreclosure can be avoided if handled properly while understanding your options. Pre-Foreclosure typically takes 6 to 12 months throughout the U.S. This process can vary depending upon the urgency of the bank/money lender.
The U.S. Foreclosure Filing rate in 2018 was 0.47% or 624,000 filings, making it a 13-year low. Unfortunately, there are many people still facing foreclosure on their homes. This can be due to various factors such as family medical emergencies, job loss, or injury. Sometimes being unable to make a mortgage payment is due to a rise in the mortgage payment from a variable loan that has skyrocketed. It may also be a loan shark that has given you an interest rate well above average and now your home is underwater (meaning you have no equity* in the home), although you may have not missed a payment in the last 2 years. These situations can be dealt with by working with a real estate professional who understands your options.
Below are some options to consider:
- Selling the house
- Catching up on payments
- Declaring bankruptcy
Avoid Foreclosure on Your Home by Selling It
Contrary to what some homeowners believe, you can sell your house before foreclosure. You can refer to our article to see a more in-depth explanation of your options for selling your home.
If the property is in good shape, has equity, and the foreclosure is early, your best option may be to sell the home with a realtor. A realtor will be able to get you the highest sales price, but it may take longer than a cash sale. This is something you will need to consider with the foreclosure status.
Selling the home for cash to an investor like Meli is another good option if the property has any outstanding repairs or issues. We will buy the property as-is in 30 days or less. Selling your house fast before foreclosure will avoid the loss of your home and get you the money you deserve. We can stop the foreclosure and grant you peace of mind.
Catch up on Missed Payments
If your financial situation has changed you can become current on payments and keep your home. This may seem obvious, but it may not always be considered with the tumultuous emotions involved in a Foreclosure.
Declare Bankruptcy
Certain types of bankruptcies can allow you to erase debts, but keep your home while making a deal with the Bankruptcy Courts on a plan to pay off the home over time. This is similar to catching up payments on your property, but the bankruptcy will typically forgive all other debts and make the payments more affordable according to your current income and financial situation.
All these options can help you to get this foreclosure behind you. Consult with an attorney to decide the best options for your unique situation.
*Equity is the amount of your home that you own. For example, if you owe $50K on your house, but you can sell it for $100K as-is then you have 50% equity in your home. If you are facing foreclosure and you have Equity in your home then you should consider selling to avoid foreclosure and save your credit.
