This is a very important question in handling foreclosure prevention and figuring out options to save your home or solve the problem with foreclosure.
Foreclosure “is the legal right of a mortgage holder or other third-party lien holder to gain ownership of the property and/or the right to sell the property and use the proceeds to pay off the mortgage if the mortgage or lien is in default. It is a concept that has existed for centuries.”
We’ve come across many sellers and if you’re reading this blog chances are you’re either in pre-foreclosure or are about to be and you’d like to know what you can do about it. Let’s look at some simple action steps you can take in foreclosure prevention in the state of Colorado.
Foreclosure prevention action steps you can take.
Not everyone is going to have a one size fits all situation even on the same topic. We’re presenting these to you so you can figure out how to best solve your situation.
1. Use money to solve the problem.
Paying off your mortgage is the quickest and easiest way to end foreclosure. When it comes down to paying mortgages or rents, money solves a lot of problems and is actually the number one reason for foreclosure to begin with is the banks not receiving a payment to pay off a loan they own.
2. Don’t sit quiet, communicate.
The worst thing to do in situations, especially around money problems, is to sit back and just wait for something to happen. You need to be proactive and stay proactive every single day. Nobody else is going to give your foreclosure prevention on your own. Communicate with a foreclosure specialist or mortgage lender in your bank negotiate to work something out with them on terms that benefit the both of you.
3. You can sell the property on a short sale.
According to Wikipedia.org, “A short sale is a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property. In this case, if all lien holders agree to accept less than the amount owed on the debt, a sale of the property can be accomplished.”
4. File for bankruptcy.
This is only mentioned because technically it is a foreclosure prevent action step because once you file for bankruptcy, the foreclosure must be discontinued. However, this is definitely a last resort option that is recommended and shouldn’t be the first. It depends on how immediate you need an answer to your problem and how much time you have on your hands. A bankruptcy stays on your record for quite some time and has harsh consequences for you financial well being.
5. Sell your home privately.
Once way to have foreclosure prevention that’s often overlooked is you can sell to a house buying company. A real estate investor is flexible on terms, understands the foreclosure process and can work out a deal with you even in a post occupancy situation. Since the investor is buying the house as an investment, chances are there going to be re-renting the property out regardless if you move or not. See if you can negotiate a deal where you sell the property and work out a rental agreement after the fact to still live in your home.
Comments are closed.