How to stop foreclosure
Don’t lose your equity and ruin your credit. Learn how to stop the foreclosure.
When adjustable rates on your mortgage changes to a rate you can’t afford you can experience some sort of financial setback. The problems start when your payment on the mortgage is not kept up to date, which can course the bank to foreclose on you. Don’t worry! in most cases, you are provided the opportunity to stop your home from being foreclosed on.
In this article, you will learn how to stop home foreclosure proceedings and how to avoid them. We will closely look at all processes and help you get back on track fast.
But first thing’s first…
What is foreclosure?
Foreclosure is an auction that occurs when the homeowner fails to pay the mortgage. If the property can’t be sold at an auction, it becomes a part of the lending institution.
Statistics from the National Consumer Regulator in South Africa (NCR) show banks repossess nearly 2000 homes every month and auction them without assessing their fair market value. Underwater homeowners are left indebted for years because if banks are not able to recover the outstanding loan amount, they have the right to sell off movable properties such as a car or furniture and can demand payment from the borrower for the remaining balance if there is still a shortfall.
Homeowners going through foreclosure still have the opportunity to sell it, even after the foreclosure process has started. In fact, you have up until the house is either sold at auction or the bank has taken over possession of it. During the period of pre-foreclosure, which is from the beginning of the foreclosure until its completion, a homeowner can continue negotiating with the mortgage lender and settle any debts that are owed on the house.
What happens if you lose your house to forclosure?
If you lose a house at a foreclosure sale, you will receive no cash for the equity you might have. A further implication is that you will be on record which will force lending institutions to implement higher interest rates whenever you borrow.
Finally, as long as the loan which you originally signed is in existence, it will show up on your credit report.
To redeem the property, the homeowner typically must pay off the loans that were foreclosed plus pay any costs incurred during the sale.
How to avoid foreclosure?
If you have current difficulty in paying your mortgage, contact your loan servicer immediately. Various banks offer different assistance programs to distressed homeowners who want to sell the property before foreclosure. Most of these programs assist homeowners with selling and marketing their properties with the help of estate agents in healthy, non-distressed circumstances. Offers that are too good to be true are usually a scam. Stay safe and trust only reputable services.
You should also carefully study your budget – track your expenses and see which spendings you can minimize.
Acts Online created a Resource Guide which will help you stop foreclosure. The guide features up-to-date information on how to avoid and stop you from losing your home.
Five reasons to do something today
- Your credit is further damaged every day that you wait. When you get further behind on your payments, your borrowing options become very limited. Any lender can check your credit nearly instantly. If you are late paying all of your bills, obtaining a debt consolidation loan or refinancing other loans will become more and more difficult.
- The longer you wait, the less you are likely to receive when you sell. When the real estate market is in a slump, waiting longer will result in fewer buyers and lower offers. In addition, once a notice of a foreclosure sale is published, the whole world knows that you are under pressure to sell and the offers will be even lower. Often the first offer you get is the best offer.
- It often takes several days to contact the lender and negotiate a deal. If you wait until the day before your foreclosure sale to call your lender, chances are she will not be able to help you. If you call her when you are only one month behind, you have several weeks
to renegotiate your loan terms or agree on a workout plan. Typically you will have to go through at least two steps to get any modification of your loan approved. During a recent renegotiation, I talked to two different bank officials several times each over a period of two weeks before reaching an agreement.
- If your loan is being foreclosed, a lawyer becomes involved, you will be responsible for paying his expenses. Your loan documents allow the lender to hire an attorney and to charge you the costs.
- The faster you solve your house problem, the faster you can get back on track to financial solvency and then on to financial independence. It is hard to be positive about your future when the wolf is at your door. Get rid of the wolf, even at a loss. You will then be in better shape to buy another property at a bargain price. The day you renegotiate or shed the debt that you cannot repay is the day your credit will begin to improve.
Here are some tips on how to stop foreclosure:
- Contact the lender as soon as possible.
- Consider loan modification, a repayment plan, a reinstatement, forbearance and any other options available to you.
- Refinance your loan.
- Sell your home.
If the fourth option seems the best, you’re in for a treat. We buy houses fast and for cash. Within 24 hours of filling out the form you can have a cash offer in your hand. Not only do we pay cash for houses, but I can take that house off your hands in just a matter of days!
What makes us different from many other home buyers is that I will give you all the details upfront, and you’ll know all the details of the offer before you sell. You have a foreclosure to stop and a piece of mind to gain. Let’s connect, so give me a call and we’ll see what we can do
What are the advantages of working with us to stop foreclosure:
You can stop foreclosure. You can settle your situation and move on without feeling like you got stiffed. There is no need to wait for a real estate agent. When I buy your house, I buy it. I pay cash fast for houses in Johannesburg and beyond – if you’re in Johannesburg South, Randburg, Roodeport, Germiston, or anywhere else in the Johannedburg city area.
Quit worrying about
- Ugly siding or an ugly house – I’ll buy it anyway.
- Repairs that need doing – don’t worry about it; I’ll buy it anyway.
- Foreclosure is only days away
We can complete a transaction in as little as 24 hours and stop foreclosure. I buy and sell homes quickly. In these markets that I work in, houses change hands just like stocks and bonds. Buyers and sellers connect with one another and transactions are made.
All of the paperwork, all of the transaction technicalities, all of the headaches you don’t have the time or the resources to deal with – all that stuff is my problem. I understand what you are going through. I help good people like you get out of tough situations week after week because there is always someone who needs help selling their house. Facing this alone isn’t something you have to do. Stop the emotional pain, reach out and give us a call. There are options to get out of a foreclosure hole, and one of them is immediately possible.
We are local home buyers that will help you stop foreclosure. Fill out the contact form below and we’ll provide you with a “No Obligation” quote.