What You Need to Know About Facing Foreclosure
Foreclosure is a reality for thousands of Americans each year. It’s a scary process, but most lenders are willing to work with you so that you don’t lose your home. Here are some necessary information about the process and what you can do to turn your circumstance around.
- Foreclosure doesn’t happen overnight.
Foreclosure is a six-step process in which the lender takes the property’s collateral to account for the missed payments. During this process, it is possible to overturn an eviction and take back your property by getting back on track with your mortgage.
The six steps are:
- Payment Default
- Notice of Default
- Notice of Trustee’s Sale
- Real Estate Owned
- The Bottom Line
- The mortgage lender does not like to initiate foreclosures
While it may seem like the bank or lender is eager to regain the property, the legal legwork is so astounding that most of the time, it’s not worth the investment. It’s much easier for a lender to work out payment issues with you than try to reclaim something they let be borrowed. Talk with your lender directly and look for people in the agency that are willing to help. If you get a closed-door, keep pushing forward, and you’ll find that most are eager to come to an agreement that prevents eviction.
- You Can Sell Your Home
This isn’t the most painless process but can certainly help you in the long run and save your credit and stop the process of foreclosure. Being proactive and hiring a realtor to help you sell your home can be beneficial for both you and the lender. Basically, you have to make enough net income from the sale to pay off your debts as well as any legal fees. Although you won’t own your property any longer, you’ll be able to start fresh. It gets you out of a tough spot and helps the bank create a new contract with someone who can pay the mortgage.
- The whole process can take six months to a year to complete.
We all know that there are so many things that can occur during a calendar year that can put you in a better position to save your home. If you’re serious about getting back on track, look at ways to earn new income. This can be by taking up a second job, selling heirlooms, or borrowing money from a family member. Whatever it takes, keep in mind the result is getting out of the foreclosure process and away from the anxiety that comes with it.
Foreclosure happens to property, not people. Losing a home is a sad reality that can happen to anyone, especially in today’s current climate. With rising unemployment and hefty health costs, many find themselves unable to make their payments. It’s important to know that just because you’re in foreclosure, it doesn’t mean you’re a terrible person. You’re still a valuable member of society, and there are many resources out there that may be able to help. In some situations, sellers can seek out a cash home buyer to sell their property quickly to save their credit. Look at the steps on this list and take action. Even a simple phone call can put you in a better position to keep your home.