Losing your home through foreclosure can happen quickly. Your credit will be ruined, and you may not be able to get any kind of loan for years. If you’re facing financial troubles, you should understand the foreclosure process and consider your options.
Notice of Default
Most mortgage lenders will give you a grace period of about 15 days to make a payment late. But if you completely miss your payment, you are considered to have defaulted on your loan. When that happens, you will receive an official notice.
The notice of default will inform you of how much you owe and will give you a deadline for paying up. It will also tell you that if you don’t pay the amount listed, the lender will begin foreclosure proceedings. The notice may ask you to contact your lender as soon as possible.
Considering Your Options
Talk to your mortgage lender to discuss your situation with them. They will inform you of all your options. It’s in everybody’s best interests to pay what you owe and get back on track with regular payments.
However, sometimes that’s not possible. If you’ve lost your job or fallen on hard times, you may not be able to make any payments now or in the foreseeable future. At this point, many homeowners decide to sell the home and find another living situation.
The “Short Sale”
Often, a mortgage lender will approve a “short sale.” That means they will allow you to sell the home in good faith, and if you get less than what you owe, they will accept that amount as full payment of the loan. The short sale allows both you and your lender to move on.
One of the fastest ways to sell your home is by dealing with a cash home buying company. These companies will give you an offer within 24 hours, and you can close very quickly. They will buy your home “as is,” without your having to make repairs.
Many people facing foreclosure turn to a cash buying company because the process is fast and easy. There is no commission to pay, and the company will pick up closing costs. It’s often the best option to help them salvage what they can of their home investment and their credit score.
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