Five Ways to Escape Foreclosure
Losing a home is a horrible experience- even if you know it’s coming and you think you’ve mentally prepared for the loss. Escape Foreclosure.
The mourning and dread in the pit of your stomach are akin to a ticking time bomb with each second that passes, equating to a second less than you and your family can stay in your home.
A home is supposed to be a safe place-your own personal space, where you can watch your children grow up, grow old with your spouse, and whether any storm that life churns up. So, with a foreclosure looming, everything you’ve worked for, and everything you’ve scrimped and scraped to achieve is suddenly rendered meaningless.
Fortunately, this terrible, heart-wrenching ordeal is not terminal for your living situation. Here are five ways to escape foreclosure.
1. Refinancing Your Mortgage
If refinancing your home is an option, this is a good way to stay in your home, keep your home, and possibly acquire a lower monthly mortgage payment.
By refinancing your loan, the lender will increase your loan payment, so that it reflects the balance that you are defaulting on.
If you are successful in refinancing your loan, it is almost like starting fresh on a new loan. You will receive new terms, a new payment schedule, and if the paperwork is completed before the date of foreclosure on your home, you’re good to go. You will be able to keep your home, with very little effect on your credit.
In fact, you might even be able to refinance your loan with your current mortgage company, as they often have deals for existing customers.
2. Short Sale
The foreclosure process is a headache for everyone involved. You certainly don’t want to lose your home and likely, your mortgage company doesn’t want to foreclose your home. They simply want the money they are owed, as per the terms of your mortgage agreement.
Therefore, a short sale is a good option, because it helps both the owner of the house and the mortgage company; letting you get out of the deal without having your credit score severely damaged.
A short sale can be achieved between the time the mortgage company files for the foreclosure and before a date is set for the auction.
This method of escaping foreclosure is done by finding a buyer for the home, that the lender approves of-essentially, it’s doing their work for them.
3. Repayment Plan
In certain situations, you can work with your lender to come up with a repayment plan. Whether this involves forgiving payments-which is the mortgage equivalent of seeing a unicorn, or changing the terms of your loan, which is abundantly more common, lenders have the option to help you get back on track.
Usually, if you can prove that you are doing whatever you can to keep your home, they are more likely to work with you. (Maybe not likely enough to see that unicorn, but certainly likely enough to help adjust the terms of your loan to help you dig yourself out of impending foreclosure.)
Here are a few ways to show your lender that you are working to keep your house:
- Get a second job
- Sell your possessions
- Respond quickly and efficiently to all notices
- Rent out your home (or a portion of your home)
4. Deed in Lieu of Foreclosure
This option is usually the last resort-before giving yourself up to foreclosure completely. While it is an option, it isn’t a particularly good one. Nevertheless, it isn’t foreclosure which would impact your life even greater than this, so it is a form of escape-though it’s considered, by many to be an escape by the skin of your teeth.
Deed in lieu of foreclosure happens when the owner of the house deeds the property back to the lender, which nullifies the foreclosure proceedings. The upside of this is that it can be negotiated that the person may remain in the house until they find another place to live.
The downside is that when the deal is done, the owner retains nothing, and their credit is affected as harshly as the foreclosure would’ve affected it.
Still, perhaps the amicability of such an agreement will help the person or family more than if they had simply allowed the foreclosure to consume them.
Although, that is in no way guaranteed.
5. Sell Your House Today!
Instead of settling for one of the above options, allow Max Cash Home Offers to save the day, and your credit score, by allowing us to buy your house for cash!
Instead of worrying about lengthy litigations and an uncertain future, that could take months to rectify and years to recover from, see how much cash you can receive for your home. In fact, many people are pleasantly surprised at the offer they receive – making it possible for them to not only get out of their predicament unscathed but also move on with their life immediately.
This is an option that keeps your credit reputable and helps you put the ordeal behind you, with cash-in-hand and your dignity intact.
Max Cash Home Offers can buy your home outright, possibly within a few days and through dealing with us, there are even options that allow you and your family to stay in your home!
Our services can be used at nearly any point in the foreclosure process and since the offer is in cash, it frees you from having to gain the lender’s approval to sell your house.
The possibility of having your house foreclosed upon is scary and incredibly daunting. However, if you investigate these five ways to escape foreclosure, you could be out of debt, and moving on with your life faster than you might think. Contact us today and escape the clutches of foreclosure, possibly by the end of the week!
Max Cash Home Offers offers instant cash offers on houses nationwide. We do not provide legal or financial advice. For information on foreclosure, eviction or any other legal situation make sure you contact a local attorney.
Author: Ryan Cruz
Ryan received his Bachelors of Science in Business Administration from the University of La Verne. Ryan has a strong passion for marketing and the real estate industry while leading and managing all online marketing efforts for Max Cash Home Offers.