Facing Foreclosure? Here Are 5 Ways To Avoid It

 

Facing Foreclosure? Here Are 5 Ways To Avoid It

Missing mortgage payments is very common these days, especially since the start of the pandemic. Many people have been laid off, have seen their income reduced significantly, or are facing financial hardship. San Antonians are no exception.

If you are one of the many homeowners in San Antonio, TX currently facing foreclosure, don't worry: you have options. Foreclosure can be prevented and even stopped.

Final notice letter ina mailbox

 

How To Avoid Foreclosure

If you've missed the last three or more mortgage payments, your lender has probably already filed a Notice of Default. You might think the loss of your home is inevitable, but you still have options. Here are 5 ways to avoid foreclosure.

  1. Work Out a Repayment Plan

    Your lender will definitely prefer to work with you on a deal or payment plan to get you up to date with your mortgage than go through a foreclosure process. Open up this conversation with them and see if you can come to an agreement.

  2. Sell Your House Quickly

    Before your lender schedules an auction, you can sell your house to a home buying company. Once you get an offer, and if it is reasonable the lender will probably consider it as it will save them time and money. You will definitely find many options to sell your house fast.

    Many home buying companies in your area may offer a straightforward and simple process. Once you submit the details and information about your property, House Buyers will normally be able to make a no-obligation cash offer within twenty-four hours. From there, you'll be able to close as quickly as seven to ten days. Nothing beats a quick and stress-free selling process. They should also be taking care of fees, or commissions and any repairs that your property might need. Last but not least you won't need to list your house on MLS as a real estate agent would do, as these companies usually sign a contract with you to buy yours in less than ten days no matter what condition your property is in.

  3. Declare Bankruptcy

    If you declare bankruptcy, all foreclosure legal proceedings must stop, as federal law makes it illegal for any mortgage lender or debt collector to continue collection activities. Bankruptcy only buys you time to get a new job or increase your income, so it would be smart if you consult with a bankruptcy attorney before going down this road.

  4. Deed in Lieu

    With this option, you sign the deed back over to the lender voluntarily. However, it's not the best option, as it will have the same negative impact on your credit that foreclosing has.

  5. Assumption/Lease-Option

    When facing foreclosure, you might be able to convince your lender to modify your loan, specifically the clause that most loans state “due on sale,” by which you agreed to pay the loan off entirely if you ever decided to transfer your property.

    This clause with due persuasion with your lender could be deleted and thus so allow another buyer to assume your debt. Your lender will probably want to assess the new buyer's qualifications, but it can be a three-way win for all. You should be able to negotiate a down payment from the buyer, which you can use to pay off your outstanding mortgage balance.

 

Review Your Options

Make sure you understand your options during foreclosure before setting your plan of action. Seek out legal advice if needed and reach out to your lender: they want to avoid a foreclosure legal process as much as you

One of these options should be able to help you stop or prevent a foreclosure. Only you know your current financial situation, so take your time to analyze which one works best for you.