Tips to Stop Foreclosure
In a recent study, it found that most individuals in the United States are suffering from debt. It is not only mortgage payments that are too large and maybe late, but also serious credit card debt and student debt. This is the reason people are unable to pay the installments and bills on time… to many bills adding up too quickly. Mortgage payments are not affordable anymore.
You should know that if you will miss two mortgage payments, the lender will start to foreclose on your house. An foreclosure auction will be completed on your house so that the lender can get their money back. You do not want to let that happen! Don’t worry, here are a few tips that might help you stop the foreclosure process.
A common solution that most of the people consider to stop foreclosure is bankruptcy. You will have to go to the court and all your collecting activities will be out in the open for the world to see. Your mortgage would be one of the collections that becomes open for everyone to see. Bankruptcy might seem like a quick solution but here are a few things you should know:
- Bankruptcy will only give you a short amount of time because, in the end, you will have to pay back the loan, only you will owe even more by then.
- In bankruptcy, the lawyer will only support you in the court to assure that you can get some extra time. You do not get any special benefits, but the lawyer who charges you by the hour sure will!
- After bankruptcy, your credit score will be damaged beyond repair for more than ten years!
- The foreclosure lender will continue anyway. They will get a stay from bankruptcy to continue the foreclosure. So, in the end, bankruptcy is not one of our good tips to stop foreclosure.
Debt relief programs
If you think that you will not be able to pay the mortgage payment next month, the only solution you would have is to look for a debt relief program. There are different types of solutions like:
- Debt settlement
- Debt consolidation
Debt settlement can periodically work for a tax lien or a credit card, but the bad news, is your lender will NOT give you ANY sort of debt settlement regarding your mortgage loan. Instead, they will foreclosure fast and furiously so they can get their money back. If you’re able to, you can pay all of your late payments plus attorneys’ fees and court costs all at one time. Otherwise, your lender will not stop the foreclosure. You can also take out another large loan and pay off the debt. However, in this situation, it is highly unlikely another lender will loan you the money to stop foreclosure.
Deed in lieu of foreclosure
You can ask for the deed in lieu of foreclosure. In this process, you will sign a deed that will give your house back to the bank. The secret here is that you cannot simply give a deed to your bank. They have to agree to accept the deed. If you want to stop the foreclosure immediately, it might seem like a perfect option. However, the lenders will not provide this option because there is a risk that the borrower can sue them by saying that they did not know what they were doing and lender persuaded them to do so. So, out of the hundreds of sellers we have worked with that tried to get a lender to accept a deed-in-lieu of foreclosure, not one has successfully got their lender to stop the foreclosure and accept a deed from the owner.
Sell your house to Charleston SC House Buyers
The best of our tips to stop foreclosure is to sell your house to a potential buyer, but in an emergency, you might find it hard to find a good buyer. A retail buyer will know that your house is about to get foreclosed and they will not be able to get a loan in time. They will tell you they can buy the house, but when you find out their lender won’t give them a loan, it will be too late for you to sell your house. You would lose all your equity then!
Charleston SC House Buyers is here to help you out. We will buy your house in any condition. You will not have to explain anything and we will give you enough money for the property that you can pay off the debt and save some for your new home. Call us at (843)553-5005 or fill out our simple seller form on this website today.