How to stop foreclosure at the last minute?
Losing your home through foreclosure can be an emotionally distressing time. Rather than suffer alone in silence, we have some ideas that may help you answer the question
An ounce of prevention is worth a pound of cure. In this Article we will discuss how to stop foreclosure at the last minute? So the first step to avoiding foreclosure is always preventative. To do this it being forward thinking and avoiding the situation altogether.
Some of the common factors that lead to a foreclosure are….
Stretching too much to buy a particular house
Many people over extend themselves when buying their home. They may calculate their upper limit, but then get emotional when they see “the house of their dreams”. Then if unforeseen circumstances arise they cannot cover the mortgage payments. This might mean they aren’t able to meet other financial obligations also.
Changes in Relationship
Unfortunately married couples do break up or get divorced. Neither may have the financial ability to be able to cover the mortgage payment by themselves.
Nothing is guaranteed in life (except death and taxes of course) As such, no job is 100% guaranteed either. Redundancies can come about unexpectedly which impacts a person’s financial status. Or, a chronic illness can cause unpaid time away from work. All of these have an effect on family finances.
You could end up inheriting a second home that you don’t have the financial capability to maintain or look after
Your home may get to the point where major repairs are needed, such as a plumbing issue or foundation problem. This extra financial outlay puts you in a position where you can’t keep up with the mortgage payment.
These are just a few of the kind of situations that might lead you to wondering and searching “how to stop my foreclosure”. Being aware of these factors in advance may allow you to plan so you can avoid foreclosure action.
“Stop My Foreclosure” Actions
There are a few strategies that you can try to avoid foreclosure. In most cases these tactics will delay your efforts to stop a foreclosure.
Delay the Notice of Default Filing
When you are applying “stop my foreclosure” efforts one thing you can try is a delay. The first type of delay tactic is with the notice of default filing. Talk to your current lender and try to get them to stall with this filing. They are obliged to file a notice of default first if they want to go ahead with a foreclosure.
A lot of the stop my foreclosure tactics are geared towards creating delays. This is all done in the hope that the delays will give you enough time to turn your financial situation around.
Stop Foreclosure Sale Date
To stop foreclosure sale date you have to try and negotiate some type of arrangement with the lender – they may help you if they are open minded. Another possibility to stop foreclosure sale date is to check out what resources may be available to you. There may be organizations like the NACA that may have some solutions.
Can I Sell My House to Avoid Foreclosure?
There may be another “stop my foreclosure” option which isn’t so obvious. Along with the delay tactics above you may ask “how can I sell my house to avoid foreclosure?”.
It’s something which is entirely possible. However, this is something that you will want to do quickly. Otherwise the lender is going to lose patience. The question can I sell my house to avoid foreclosure means looking at your options for house selling. This includes selling it yourself, selling it through a realtor or a cash sale.
Why a Cash Sale of your House is the Best Option
You have the ability to approach a cash buyer for your home.
We have another article listing the benefits and drawbacks to each of these methods so feel free to look it up. But here is a summary of some of the pros and cons. (In the right circumstances this can be the best solution for a stop my foreclosure situation.)
How the Cash Buyer Solution Works
Cash buyers are usually real estate investors. They specialize in purchasing homes where the seller wants or needs to sell quickly.
The Pros to Having a Cash Buyer
A cash buyer has the ability to give you a full cash offer for the purchase of your home. This means no waiting for financial approval from a lender for the potential buyer. The transaction moves quickly and will satisfy your lender. You also avoid the legal fees that come with a traditional sale. There is no need to wait for the right buyer to come along and you don’t have to worry about endless showings and dealing with a realtor. You also don’t have to worry about doing any repairs to the home, since the cash buyer buys it “as is”.
Considering the Price
You may also be asking “will I get a fair price?”. In many cases it will most likely be below market value. This doesn’t mean that you are being ripped off, it simply means that the buyer has the ability to close quickly and so a lower cash offer is actually worth more than a higher conventional offer since it is guaranteed to close. This means you can feel confident knowing you won’t be subject to foreclosure and have a mark against your record or credit file.
There are some things that you need to consider regarding the price.
You will not be paying realtor fees
You will not have to pay any legal fees for this particular type of “stop my foreclosure” action.
You don’t have to do any quick repairs since the investor buys the home “as is”.
These are all costs that add up when you are selling a home when you are taking stop my foreclosure actions.
Also keep in mind as to what is going to happen in the foreclosure sale. The lender is not allowed to make a profit on the house. Therefore he has to sell it for the debt owed. He is not likely going to risk losing a sale in order to get you some money from the sale. The lender wants to sell as quickly as possible so they can recover their money.
You are far more likely to come out with some extra cash in your pocket from the sale to a cash buyer. This will obviously depend on your personal circumstances. At the very least you may be able to salvage your credit rating. The stop my foreclosure process helps to prevent severe damage to your credit rating.
The can I sell my house to avoid foreclosure is an excellent question.The outcome may also be the answer to stop my foreclosure.