Is It Possible To Stop Foreclosure?
When you were the prospective home buyer you were taking tours of different homes and talking about the homes pricing and features. During this foreclosure was probably the furthest thing from your mind. Foreclosure doesn't usually come into people's minds until they have missed a payment, and even then they don't usually want to face the problem. This is an easy thing to put off but it is something that can have very drastic consequences. You are not only risking your home you are also putting your credit rating, and all future purchases, at risk.
Here are a few things that you can do to avoid foreclosure.
Sell to a Real Estate Investor
Selling to a real estate investor may be one of the best options for people who want to resolve their home crisis quickly. Real estate investors want to get a good purchase price for the title, but you may be able to work out a deal with them that will end up saving you from both the consequences of eviction and poor credit scores. Often, if you show that you would make a good occupant, then a real estate investor will purchase the home for you, but will allow you to live in it as a renter. This will save your credit rating from getting any worse and will also prevent you from moving out.
Sell With A Realtor Or Agent
If you are very early in the foreclosure process you can think about selling the house with the services of an agent. You may be considering selling your home by yourself but depending on the time and your market this might not be the right answer for your needs. Realtors and agents can speed up the sale process by using a marketing plan and by making sure that the home is seen by the most number of people possible. If it is a time that heavily favors the sellers you can sometimes find discount brokers that will take a lower percentage fee, while providing fewer services. No matter who you pick or how you decide to sell it is important that the person, or firm, you decide on knows your financial issues and the gravity of the situation.
Short Sale
The short sale approach is almost entirely the lender's decision on whether they agree to make this sort of sale. In a short sale, the home is priced at a lower amount than what the current home owner owes on the mortgage. The lender is thus agreeing to take a lower amount of the sale than the amount of the mortgage. This difference is called deficiency in some states, and you will need real estate lawyer to handle the details to negotiate the terms and its implications. However, a short sale will not negatively affect your credit as much as a foreclosure, so many people opt for this option when going into pre-foreclosure steps.
Deed-In-Lieu Of Foreclosure
In a Deed-In-Lieu Of Foreclosure, the homeowner exchanges the title of the home for a cancellation of the mortgage. Basically, instead of selling a home to a buyer, the bank is the buyer. Because most banks would rather have cash instead of managing a property, they will usually want you to put the home on the market yourself for a set time period before agreeing to a deed. In terms of your credit rating, it may affect you in the same way as a foreclosure. However, there is the simplicity of just handing the title over to your lender and moving out instead of going through the emotional strain of foreclosure.
About the Author
The most difficult part of a home sale is finding an ideal buyer. By preparing yourself and your home before putting on the market, you can help raise the odds of finding and keeping a buyer. Check out our blog to find out how!
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