Foreclosure is one word that no homeowner wants to hear. Yet, sometimes issues arise, such as unemployment or medical emergencies, and you are unable to meet mortgage payments. A pending foreclosure can create a great deal of stress and uncertainty for you and your family. Rather than ignore the situation, it’s best to act immediately. In this article, we are going to list options on how to stop foreclosure at the last minute.
Modify Your Loan
There’s no doubt that your lender has tried to call you. So, rather than ignore the calls, you should consider answering and trying to work out a deal with them. Trying this first can save your bank or lender money, as well as yourself.
Think about it, the mortgage holder will lose money on the interest due, and a portion of the principal when the property goes to auction. While this will depend on the company you purchased the home with, most are more than happy to negotiate a deal. This may include adding missed payments to the principle, waiving fees, and more.
Before going any further to stop your foreclosure at the last minute, use your leverage and see if you can resolve the problem this way.
File For Bankruptcy
If you tried to modify your loan but were unsuccessful, the next thing you might consider is filing bankruptcy. While this will hurt your credit score, it is a viable option.
When it comes to which type of bankruptcy to file, you’ll want to make the decision based on what you’re trying to do.
If you want to keep the home and spare your credit from the worst impacts, then Chapter 13 is the way to go. This type enables you to pay down your outstanding debt through structured repayment plans.
On the other hand, if you simply want to buy yourself some time and don’t plan on keeping the house, then you’ll probably want to file for Chapter 7 bankruptcy. Chapter 7 will allow you to remain in the home through the bankruptcy process, even though you won’t be making any payments. During this time, you can again try to work out a plan with the lender, or simply save your earnings to move into a new home.
Both forms of bankruptcy will pause the foreclosure process while you work out your debt, but again, it will negatively affect your credit.
Selling Your House As-Is
The truth is the mortgage lender wants their money back. So, they are happy to stop foreclosure if you can sell the home and raise at least enough money to repay your loan balance. Selling a house as-is will not only stop foreclosure at the last minute but also spare your credit score and avoid bankruptcy legalities.
When trying to stop foreclosure at the last minute, this is one of the best options you have. Selling a house as-is to a cash buyer will make for a quick sale. Most companies that buy houses for cash finalize the purchase in 7 days or less. It also means that you don’t have to make any repairs on the house, wait for financing, show the home, or even work with a realtor. Many companies buy houses for cash around the country, so all you have to do is a bit of research to find a reputable one near you.
We Know How to Stop Foreclosure at the Last Minute
If you currently own a property in Southwest Florida that’s facing foreclosure, call us here at Tropic Coast Homes. We buy any house in all price ranges, regardless of what kind of issues you are facing.
So, relax and don’t worry about how you will stop foreclosure at the last minute! Call us today and let’s talk about it!
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