There’s nothing to be ashamed of if you’ve fallen behind on your mortgage payments. It can happen to anyone. One day you’re earning an excellent salary, and you’re able to afford a big and luxurious house. Then something happens and you find yourself without a job, and you’re not able to meet your mortgage payments.
If you are in this situation, you must act quickly before it’s too late. It’s in your best interest to sell your house before foreclosure starts. Keep reading to learn the consequences of not selling your home before closure and how homebuyers can help you with that.
About The Foreclosure Process
A foreclosure process can only begin once you start falling behind on your mortgage payments. Miss a single payment, and you should expect a foreclosure notice soon in your mail. If you’re more than 120 days late, your lender is granted the legal ability to reclaim your home and sell it in order to recover its money.
Being thrown out of your own house is not the only thing you should worry about. Foreclosures affect your credit report and can severely lower your credit score by even 300 points. Without a good credit score, you can say goodbye to credit cards, loans, and being able to qualify for mortgages soon.
That’s why it’s vital to take advantage of the 120 days you have before foreclosure occurs. Selling a house before foreclosure arrives it’s not easy. But here’s what you need to know if you want to do it.
How to Sell a Home Before Foreclosure
Does your house worth more or less than what you owe on your mortgage? The answer to that question can make all the difference when selling your house before foreclosure occurs. If your home’s market value is more significant than what you owe on your mortgage, you can still use the money to repay your lender.
Selling a house in less than three months is not going to be easy. Three months is the amount of time it usually takes to place your property in the Multiple Listing Service (MLS). Traditional selling methods won’t help you this time. That’s why you’ll need to take advantage of the services from a home buying company or look for alternatives to stop foreclosure like some of the following ones:
Reinstatement
Reinstatement allows the borrower to pay all missing payments, interests, and penalties in a single charge. Reinstating a loan will enable you to stop foreclosure as it lets you catch up with your payments. When the loan is finally reinstated, you’re able to go back to pay regular payments on your mortgage.
It would be best to reinstate as soon as you can and not wait until the last minute. If your funds aren’t delivered on time due to a mailing issue or a bank error, you could lose your home. So it’s better if you present the funds for reinstatement in person or via overnight courier.
Short Refinance
A short refinance done when your bank or mortgage lender pays off your current mortgage and switches it for a new loan with a reduced balance. If your lender forgives the difference, then you’ll be able to avoid foreclosure.
Although the new loan payment will be lower, a lender sometimes chooses a short refinance because it’s more cost-effective than foreclosure processes. The bank ideally loses less than they would via foreclosure, and the homeowner gets to stick around in their property.
Contacting a Home Buying Company
Using a home buying company is the most effective and reliable way to stop foreclosure from happening. One hundred twenty days it’s more than enough time to sell your house when you’re late on your mortgage payments. A home buyers’ process is so straightforward that you could be selling your property in just 24 hours.
We Buy Foreclosed Homes in Charlotte, NC
Even when your home gets foreclosed, you still have the chance to sell it before it’s bought in an auction. It’s way more comfortable for a lender to accept the money from a quick sale instead of waiting months for the foreclosed property to sell.
Here at Opening Doors Properties, we buy foreclosed homes in Charlotte, NC. We can help you get the cash that you need by buying your house fast and easy. Use your time wisely before it’s too late. Contact us now to avoid foreclosure.