Sometimes we just aren’t sure how we got here or how to solve our issue.
First of all, know that you’re not alone. Every day, home owners have this exact same problem, usually through no deliberate action or intent on their part.…loss of a loved one, divorce, unexpected medical expenses, or some other unplanned but financially devastating event in your life. Just when you think you’ve gotten it all together, something happens that throws you into a financial tailspin.
Bad things do happen to good people, but no situation is ever hopeless. Maybe you can’t save your home, but there are ways to make it less traumatic than you fear.
I’m Behind on My Mortgage Payments
Sometimes the mortgage payment has to take second place to eating, staying warm and having the lights on. Some lenders will start foreclosure proceedings after one missed payment, while others will try to work with you and not begin the process until after several missed payments. Whichever the case, you will know when foreclosure has begun when you get a notice in the mail. When this happens, you have a few options which we will review below.
Get up to date on your payments. Use whatever resources you may have to get help with this. Exercise any option you may have to get up to date on your payments. If possible, perhaps you can borrow money from family, or seek out resources from your church or other social agency to assist you.
Try to work out a loan modification with your lender which may reduce monthly payments and help you get back on track. Truth is, your lending bank really doesn’t want to be in the real estate business, and would prefer not to have to deal with a vacant house. So if you come in with a plan to get caught up, your bank may consider lowering your monthly payments to help you work your way out of arrears. There is no guarantee that this will happen, but at the very least it’s worth a shot.
File for Chapter 13 bankruptcy. This will immediately stop foreclosure proceedings, but will require that you get caught up on your mortgage payments, as well as any other unpaid debts, within a specified period of time, usually 3 to 5 years. This is a court-approved contract so you will not have any wiggle-room to work with. But if you work out a reasonable plan and feel certain that you can comply with the terms, you will get to keep your house.
Sell. Sometimes all you really want to do is get out from under and move on. Until the foreclosure is finalized, you can sell legally sell your house, and there are several options available to you:
Mortgage companies will often agree to a short sale, in which the lender will let you sell your home for less than the total amount of money you owe on it. This involves contracting with a real estate agent, and is a good choice if the value of your home is less than the amount you owe on it. You won’t make any money, but the bank will forgive the mortgage debt and may end up making more money than if it foreclosed.
You could sell the home on the open market, but this may take more time than you have, and the costs associated with it may not be feasible for you at this stage in the game. This works if you have the time and sufficient equity in your home (the difference between what the value of your home is versus what you owe on it), and can walk away with some money in your pocket.
Finally, if both the time and the money are not available, consider selling to a house buying service, such as Swift Results. Companies such as ours will give you a fair, all cash offer which you can choose to accept or decline, and we can close as soon within a week if that’s what you need. And, there are no costs involved for you: no commissions, no closing fees, no repairs. We buy houses in as-is condition, so you don’t have to deal with any of the hassle of getting a house ready to sell. Another added benefit is that your credit rating won’t take a big a hit as it would if you filed for bankruptcy.
If you want to see what we can do for you, give us a call at 719-354-2564 or go to our website and learn more. We can help you get out of the mess and move on with your life.