Americans across the country have been grappling with one question for a very long period now. All these people want to know how an individual borrower can survive making monthly mortgage payments and avoid foreclosure. Approximately 60,000 Americans had struggled with this question just before the place they once called home disappeared on the foreclosure market. Do you want to say this question hasn’t crossed your mind yet? If you’re a borrower struggling the very same way others are, you should know that not everything is lost. There’s still hope for you. In fact, there’s always hope for all of us!
Anyone can find him or herself in an economic crisis regardless the level of income or education. Statistically, about 500,000 families have or are about to lose their homes to foreclosure. At this point, it’s safe to say the struggle is real out here. Without a doubt, it’s a painful process, but we can say it way rougher for those individuals who don’t know how they’ll survive the next mortgage payment.
So what can one do to get out of such a jam?
- Complete a short sale or wait for foreclosure
Let’s start by identifying the difference between these two processes. We’ll start off by talking about foreclosures that usually happen in all states even though the laws are slightly different. So the first step is to stop making the monthly payments. This happens because life throws curve balls at you. You’ll receive a notice of delinquency from the lender. It will explain the consequences for missing your payments and if you don’t try to make contact to iron out the issues your creditor will initiate the foreclosure process. To cut a long story short, this process always ends with the borrower getting evicted and the lender assuming ownership of the house.
So with the foreclosure process, you automatically lose control over the property once it begins. In a short sale, you can still control how things operate. A Short Sale defines a situation where the borrower has to sell the property for an amount that’s less than what they owe the bank. Before initiating the process, you have to seek permission from your lender.
A foreclosure takes years to process and all this while you can still take residence on the property. A short sale, on the other hand, gives you an opportunity for a fresh start. Subsequently, you’ll have dealt with the mortgage either way.
- Selling to a home buying company
These firms usually help various homeowners to sell their properties quickly. A house-buying organization will remove your mortgage obligation and at the same time offer you cash for the home. That means you won’t dent your credit score in any way.
A home buying company has many benefits:
- You can avoid a credit default which can haunt you for eons.
- It’s the simplest way to get out of the mortgage
- And you get a second chance at a fresh start
Don’t feel helpless. There are a ton of options out here if you just start looking. Weigh all your options and find out what best suits you. But if you think selling is the route to take, contact us today.