Nobody wishes to lose their house, yet circumstances can change, and financial obligations can accumulate.
If you are unable to make your monthly loan payment and there are no equity gains to balance it, the bank may seize and sell your house prior to the loan term expiring. You may find yourself momentarily homeless and with a long-term negative influence on your life and finances.
Obviously, this is not desirable. Fortunately, there is a technique you may employ immediately to aid you in proactively preserving yourself and regaining financial stability.
The Foreclosure Process Typically Works As Follows
The foreclosure process varies by state, based on the kind of loan and the region. Typically, though, it proceeds as follows.
Most lenders will give you notices and subsequently warnings if you miss a few mortgage payments. If you do not make up for missed mortgage payments over time, your lender may sell your home at public auction.
The period of time during which you may occupy your property after it is sold at auction is defined by the state in which you reside. However, you will ultimately need to relocate. Typically, this sequence of events is referred to as foreclosure.
Fortunately, There Are Several Ways to Avoid Foreclosure In Lancaster, PA
If you wait until your home is foreclosed, you will see a large drop in your credit score. A “deed in lieu of foreclosure” is a tactic for protecting your home by negotiating with the lender.
When you turn over the house to the loan provider in order to avoid paying for foreclosure processes out of pocket, this is referred to as a “conversion.” A conversion occurs when a borrower saves money by returning their home to the bank and avoids foreclosure. Additionally, you avoid your credit rating from being destroyed for years to come.
Additionally, you can avoid foreclosure by selling your home at an auction prior to putting it on the market. If you sell for enough money after that to completely repay your debt, you will not be punished. If the sale price is less than what you owe, you must make up the difference with the bank. Bear in mind, however, that auction costs are deducted from your winnings, reducing the amount of money you keep.
Another alternative is to sell your house to us in its current condition. Awakened Property Buyers will pay you a fair price for your home without requiring you to do any renovations or incur any additional fees or closing expenses. This may help you prevent foreclosure and other complications as well.
One other alternative would be a For Sale By Owner (FSBO) option, but there is a lot of work involved in that. You can learn more about FSBO here.
Here is an illustration: Assume you owned $100,000 on your property and sold it to us for $90,000 in order to avoid foreclosure. You would pay that money to the bank, along with an additional $10,000 to cover the shortfall. Your debt would then be repaid, and there would be no additional adverse effect on your credit score. A real estate lawyer may even be able to assist you in avoiding the additional $10,000 difference.
Lancaster County also has a Foreclosure Diversion Program that some people qualify for. You can read more about that here on the Lancaster County Website.
If you feel you would like to pursue a quick and relatively easy cash offer process before trying all of these other options, we are professional real estate investors at Awakened Home Buyers. To learn more about what we can do for your property, whether or not it requires renovations, call us immediately at (717) 925-7465.
Why Would I Sell My Lancaster, PA Home Rather Than Allow The Bank To Take It?
Why would someone sell their home rather than face foreclosure? (After all, they will no longer be residing there anyhow.)
While losing a home is distressing, the long-term ramifications for your money and credit are far worse than if you wait through the foreclosure process. Indeed, going through foreclosure significantly reduces your credit score for up to seven years. This makes it tough to purchase the majority of other items on credit. Thus, selling your property is still a better option in the near term than undergoing a lengthy and costly foreclosure procedure or simply returning your house to the bank.
Awakened Home Buyers will be happy to visit your property and give you an offer on your home. There is no pressure to accept, and you have nothing to lose. Our process is simple and quick. Please consider contacting us about a conversation.