Like other Americans, you’re probably living in your dream home at this moment. But unfortunately, thanks to the biggest interest rate hike in two decades, that dream will become a nightmare for a few.
That means mortgage payments will get higher. With the Federal Reserve announcing that more interest rate hikes are on the way, it’s fair to say a few people will be facing foreclosure.
Foreclosure might feel like being caught between a rock and a hard place, but below is a detailed explanation of the several ways you can sell your home to avoid foreclosure and turn that significant loss into a win.
What is Foreclosure?
Foreclosure is when the lender takes possession of your home after defaulting on the mortgage payment. It is a rare occurrence in the US as it only affects 0.11% of housing units, according to Statista. After taking your home, the lender will dispose of it to recoup the money borrowed.
Selling Your House to Avoid Foreclosure
Approximately 2.2 million borrowers have a delinquent mortgage by the end of their third month, and 3.9 million avoid foreclosure by getting a forbearance plan.
If the lender doesn’t grant you the forbearance, you must sell the home fast or face foreclosure. You could try to sell it on the open market, but that could take months to accomplish, leaving you at the mercy of foreclosure. Realistically, you have two options, as described in detail below:
a) Short sale
With a short sale, you sell the home lower than the mortgage balance. You can conduct one before or after foreclosure proceedings have begun. A short sale is good for you if:
- The lender does not allow you to modify or refinance the mortgage
- You can’t afford the home maintenance costs anymore
- The home is not worth as much as the mortgage
- You are facing long-term financial hardship
Although a short sale will ensure your credit rating doesn’t take a hit, it has some downsides. First, even if you get a buyer, the lender may still reject it if the terms do not meet its bottom line, as it means they will lose money if you sell the home for less than what you owe them.
Further, the process could take a long time (6-12 months) and be either complex or easy, depending on the lender. You may also end up paying fees and penalties during the transaction.
b) Home investors
Another way to avoid foreclosure is selling to home investors, especially when the foreclosure process begins. Investors are the best option if you want to get quick money to offset your mortgage.
Home investors will buy your house in whatever condition. Other benefits of selling to investors include:
- Payment in cash
- Fast processing
- They don’t charge repair fees
Need Fast Cash to Avoid Foreclosure?
If you are on the verge of losing your home because of being behind on mortgage payments, let us help. We offer an unbeatable, Fast & Fair home-buying process to help you outmaneuver the financial devastation accompanying a foreclosure. Here’s how you would benefit if you partnered with Next Level Home Buyers:
- We make an as-is offer
- Fair offer based on current market value
- Cash terms
- Complete transaction within 1 week.
When you sell us your home, you get quick cash to halt the foreclosure process, saving you money and a bad reputation from a dented credit score.
Contact Next Level Home Buyers
Don’t hesitate to contact us or call (860) 368-0343 for a fast and painless home buying process to help you avoid foreclosure.
WE BUY HOUSES IN ANY SITUATION:
Behind on Payments
- Death of a loved one
- Liquidating assets
- Inherited property
- Job loss
- Bad mortgage
- Medical Bills
- Extensive repairs