Ever since the Covid pandemic has ended foreclosures have been spiking. Forbearance is up and now homeowners are left in an ugly position asking themselves, "What Should I Do To Save My House From Foreclosure?" If you are one of the many Americans asking, What Should I Do To Save My House From Foreclosure, don't stress there are many ways to save your home from foreclosure. Continue reading this blog to learn 9 ways to save your house from foreclosure.
The simplest and fastest way to save a home in foreclosure is to pay the arrears. Arrears are, as the name suggests, the amount of money that you owe on your mortgage. In order to stop a foreclosure, you need to bring your account up to date. This will require budgeting and belt-tightening, but it is the best way to save your home from foreclosure. Reach out to your mortgage company and request a payoff letter this will outline the amount of money you need to bring your account up to date including arrears, late fees, and any other fees associated with the missing payments. Once you reinstate the loan you can continue to make payments as you normally would. if you can not afford to catch up on the arrears see if you have a friend or family member that can help. If you owe too much or can't come up with the amount owed and areas still wondering, what should I do to save my house from foreclosure, don't worry we have a few more options that are cheaper.
Get A Loan Modification
The next way to save your house from getting foreclosed on is to do a loan modification. A loan modification is when the mortgage company agrees to change the terms of your loan to make it more affordable. This could be a longer repayment plan, a lower interest rate, or even just a suspension of payments for a few months. A loan modification will require some paperwork and you will have to show financial hardship, but if you can prove that making your regular payment is a struggle a loan modification may be the best option for you and your family. If you are approved for a loan modification your payments will go back to normal after the agreed-upon time period, making this a more affordable long-term solution. understand that not everyone will qualify for this, you will also have to be able to prove that moving forward you will be able to make the payments. This is a great option for homeowners asking, what should I do to save my house from foreclosure since they will be able to keep the house.
Get A Forbearance Agreement
If you are still unable to make your regular mortgage payment, your lender may agree to a forbearance agreement. A forbearance agreement is when the lender agrees to let you postpone making payments for a set period of time. This will give you some time to get back on your feet financially and make it easier to catch up on missed payments. Forbearance agreements are typically used in cases of financial hardship or when the borrower is going through a tough time. After the forbearance period is over you will have to make up for the missed payments, but this can be spread out over a longer period of time.
Refinance Your Loan
If you are struggling to make your mortgage payment each month, refinancing your loan could be a good option for you. Refinancing essentially means taking out a new loan with different terms in order to lower your monthly payment. This could be a new interest rate, a longer repayment period, or both. When you refinance your loan you will have to go through the entire loan process again including a new credit check, but it may be worth it if it means you can keep your home.
Get A Government Loan
The government offers several programs that can help homeowners who are struggling to make their monthly mortgage payments. These programs include the Making Home Affordable Program, FHA Loan modifications, and VA Loan modifications. Each of these programs has different eligibility requirements, but they all offer assistance to those who are struggling to make their mortgage payments.
Sell Your House
In many cases where homeowners are asking, what should I do to save my house from foreclosure they are unable to keep the house. If this is the case, you may want to consider selling your home. This will allow you to get out from under the mortgage and avoid going through foreclosure. You may not make as much money selling your home as you would if you kept it and paid off the mortgage, but in some cases, it is the best thing to do to save your credit and move forward. Here are 4 ways you can sell your house in foreclosure.
Deed In Lieu Of Foreclosure
One way to get rid of a house in foreclosure that you may not be able to sell is a deed in lieu of foreclosure. This is where the homeowner signs the deed of the property over to the lender in order to avoid going through foreclosure. The advantage of this is that it will release the homeowner from the mortgage and they will not have to go through the foreclosure process. The downside is that the homeowner will still end up losing their home and their credit will be impacted. In this scenario, the homeowner will also get no money from the sale of the house however, if the homeowner has no equity it is an unfortunate situation.
A short sale is when the homeowner sells their home for less than what they owe on the mortgage. This can be a good option for homeowners who are struggling to make their payments and are not able to sell their home for the full amount. The advantage of a short sale is that it will allow the homeowner to get out from under the mortgage and they will not have to go through foreclosure. The downside is that the homeowner will still end up losing their home and their credit will be impacted. In this scenario, the homeowner will also get no money from the sale of the house however, if the homeowner has no equity it is an unfortunate situation. Illinois Real Estate Buyers has helped many homeowners through the short sale process by connecting them with local professionals who can help them with everything from the paperwork all the way to the closing. If a short sale is something that interests you, contact us.
Sell Your House
Sometimes when a homeowner asks us, what should I do to save my house from foreclosure the answer is simple, just sell your house fast. This will allow you to get out from under the mortgage and avoid going through foreclosure. You may not make as much money selling your home as you would if you kept it and paid off the mortgage, but in some cases, it is the best thing to do to save your credit and move forward.
Sell Your House With A Realtor
For some homeowners, the answer to what should I do to save my house from foreclosure is to sell their house with the help of a realtor. This may be a good option if you have some equity in your home and you are able to sell it for close to what you owe on the mortgage. The advantage of working with a realtor is that they will handle all of the paperwork and marketing for you. The downside is that you will have to pay the realtor a commission, which is typically around 6%. This can also take some time, which you may or may not have. Every day your home sits on the market your arrears and late fees climb up. Selling your house and paying commissions, closing costs, repairs, and many other costs can really eat into your equity. Check out some of our other articles about selling.
Sell Your House For Sale By Owner
Selling your home by owner may be a better option if you don't have the equity to sell with an agent. You will still be responsible for marketing your home and doing the paperwork but you will not have to pay a commission. This will probably be a longer more stressful process for homeowners who are looking for a way to save my home from foreclosure but can be a viable option in some cases. be careful when doing this though, if you go under contract with a buyer who is unable to perform you may waste months of valuable time as your equity is slowly diminishing. Remember, selling your house by owner can have hidden costs as well, we wrote an article about this to help guide you and budget accordingly.
Sell Your House In Foreclosure To A Cash Buyer
This is usually the best option for homeowners who are facing foreclosure. When you sell your house to a cash buyer, they will take care of all of the paperwork and they will pay you in cash. This will allow you to avoid going through foreclosure and it will also give you the money that you need to move on with your life. The downside is that you will not get as much money for your home as you would if you sold it on the open market. However, in most cases, this is the best option for homeowners who are facing foreclosure. Cash buyers are usually the first option when homeowners need to sell a house fast.
Sell Your House Subject To The Existing Mortgage
This is an option that very few homeowners know about. When you sell your house subject to the existing mortgage, the new buyer will take over your payments and they will be responsible for the mortgage. This can be a good option if you owe more on your mortgage than your home is worth and you are not able to sell it for what you owe. Even if your home is underwater and you owe more than what it is worth investor buyers can give you some money to start fresh. The potential buyer will either live in the property as a primary home or turn it into a rental. After some time they can refinance your current mortgage and you will be free and clear of the mortgage. Another way this helps homeowners who are looking for what should I do to save my house from foreclosure is that subject to your credit can be saved. When the new buyer makes payments every month it goes as if you are making the payments and builds your credit score, not theirs.
If this is an option you are thinking about make sure you look into your new buyer. In most situations like this homeowners elect to sell their home to an investor buyer. The investor typically has cash reserves, is an experienced home buyer, knows the subject to process well, and has other rental properties that can cover the monthly payment should the tenant not be able to pay. If you are thinking about selling your house subject to in order to avoid foreclosure or to maximize the amount you make on the sale of the property, contact us and we will walk you through the process.
In conclusion- What Should I Do To Save My House From Foreclosure
In this blog, we reviewed 9 ways to save your house from foreclosure. Hopefully, a few of these will connect with you and at least one of the 9 ways will work. If after reading this blog you are still wondering, what should I do to save my house from foreclosure, contact us. Homeowners are always asking us, what should I do to save my house from foreclosure we are always happy to help. Whether you decided to sell your house to us or not is fine, we can point you in the right direction and get your house saved from foreclosure. To learn more about what you should do to save your house from foreclosure, fill out the short form below and someone will reach out to you to discuss your personalized option plan.