No one buys a home with the intention of missing the regular mortgage payments. However, unexpected circumstances such as job loss or severe illnesses can find their way into your financial plan, causing you to negate the installments. With most mortgage contracts denying that provision, failure to make timely payments sets the stage for economic actions from the lenders. With that in mind, homeowners ought to prepare for a rainy day or risk losing all their lifetime investment when it is too late. Depending on the situation between the owner and the bank, there a few options for homeowners to prevent a bank sale of their dwelling place. Some of these options include:
Although this is probably not the first option you would think of, selling your home to an investor is better than letting your expensive home go into foreclosure. Taking less for your home than you would like may seem like a bad decision at first but, depending on your situation, it may be your best option. By choosing to sell to an investor during the pre-foreclosure process you will avoid the lender taking possession of your home and ruining your credit.
Additionally, a homeowner may look for a prominent investor, sell the property to them, and then arrange for leasing the property back to you. Such a lease agreement should have the option to buy back the home. Always remember that having half of something is better than having zero of the same thing. If the home goes into foreclosure, there is a huge possibility of you ending up with absolutely nothing as well as a poor credit to haunt you for the next ten years or so.
If your home has some equity and you are not so far behind payments, refinancing your loan may be the choice for you. Typically, the lender will finance the existing loan balance and incorporate any late fees as a component of the most recent credit. Additionally, any costs that you would require to get back on your feet is also inclusive in the new loan and made as one loan.
The biggest challenge facing a vast majority of homeowners is getting refinancing options. Most of them have already taken maximum advantage of the refinancing option that they cannot get significant equity to cushion against financial storms. That leaves them with little to no equity in the property making it just impossible to refinance and prevent the sale.
Cutting on significant expenditures and finding alternative sources of income may not always be enough to finance the cause of unexpected circumstances that lead to foreclosure. If such is the case, then you should make an appeal to your lender to allow you a bit of relief in the form of a flexible payment structure. Every bank deals in a different way with defaulted homeowners. However, a few will be willing to offer substitutes that help in lowering average monthly payments. Such alternatives will allow the owner pay any amounts in default over time.
In a short sale, a homeowner finds a buyer who is willing to offer less than what they owe and the bank decides to let go the lien. It is beneficial to homeowners since they can obtain a deficiency waiver right before selling the home. The investor decides to buy your home below the market value at that time to help you avoid foreclosure auction. They then assist you in moving and getting a place that suits your needs and budget.
At Roxbury Mill Properties, LLC We specialize in purchasing distressed homes, renovating and reselling. In this way we not only help homeowners out of difficult situations but also improve the community by providing affordable housing that attracts new homeowners to these neighborhoods.
Through our extensive knowledge of the business, our network of resources, and years of expertise, we are able to assist homeowners with a wide variety of real estate problems. We pride ourselves on working one-on-one with each customer to handle their individual situations.
With the ability to directly purchase homes and make cash offers, we can create an extremely fast, and hassle-free transaction.