One of the most stressful experiences you can have as a homeowner is facing the risk of foreclosure. Whatever the circumstances that have placed you in this position, e.g. job loss, divorce, illness, sudden death in the family, or excessive debt obligations, there are options for you to stop the foreclosure.
At Cash4Homes, people who need fast cash in Utah turn to us to buy their homes. For many, this ensures that they avoid foreclosure while receiving finances to help them pay off their debt and get through difficult times.
Go through these options available to you to stop your home from being foreclosed.
Many of the options are available to you before your lender has issued a notice of default.
Once your lender has filed a notice of default, your options for negotiating with them dwindle. Still, there are some effective methods you can use to either postpone the foreclosure or postpone it until your finances recover.
Even at this point, you can qualify for reinstatement of your lawn if you can gather enough money to service the missed mortgage payments in one lump sum. You may also have to cover the costs of filing and stopping the foreclosure.
Your lender may agree to give you more time to make up your payments, essentially agreeing to wait before taking legal action. From there, you can both negotiate a payment plan that’s more affordable for you. This process is known as forbearance.
Similarly, you may negotiate with your lender to spread your missed payments over a longer term. This route typically involves paying a surcharge on your monthly mortgage until your account is current again.
And if your loan carries adjustable interest, it’s possible that you may be able to negotiate with your lender to freeze it at its present rate. Your lender may also decide to altogether change the interest rate to one you’re better able to afford.
Lastly, your lender may be able to add back payments to the loan balance. However, this is only possible if your current equity meets the lender’s guidelines.
There’s one aspect of successfully negotiating loan modification that’s important for you to keep in mind. There’s a greater chance that your lender will work with you to come to an agreement if they’re convinced that your financial troubles are temporary, and you’ll soon have the means to make timely payments again.
One of the most effective solutions, once foreclosure proceedings are underway, is to sell your home. Depending on the value of your home, you may be able to sell it for enough to cover everything you owe your lender, including any penalties and fees you may have incurred.
When taking this route, it’s best to inform the lender as soon as you make the decision. They may postpone a foreclosure auction or sale, giving you more time to find a buyer.
If you’re selling to Cash4Homes, that process becomes both easier and faster. We don’t list your property; we’re the buyer.
And if you owe more than the value of your home, you may qualify for a short sale. A short sale will have an effect on your credit, but it won’t be as severe as the impact of a foreclosure.
Cash4Homes can buy your home, whatever stage of the foreclosure process you’re in. We buy homes all over Utah, and we’re usually able to make a fair, all-cash offer within a day of you reaching out. Contact us today to sell your home for cash.
