How to Prevent Foreclosure
Good People in a Tough Situation
How many good hard-working decent people are behind in their monthly mortgage payments and going through a foreclosure? Unfortunately, the answer is there are thousands.
Whether the foreclosure is due to a job loss, medical condition, loss of a loved one, divorce, disability, or just plain bad luck, you just need honest answers on how to prevent foreclosure and a little bit of help. We hope this article provides some of that.
Below is a summary of how to prevent foreclosure and where you can get the help that you need.
Six Ways to Prevent Foreclosure
1. Pay the Mortgage Company
The first one is the most obvious way to prevent foreclosure, paying the mortgage company the outstanding payments. What may not be obvious are the different places you can potentially obtain the money.
This includes family, friends, IRA’s, 401K, second mortgage, credit card cash advance, and employer pay advance. You can also get some help from the Salvation Army, Catholic Charities, and other nonprofits.
Yes, every month these charitable organizations help pay mortgage and rent payments for struggling families. These charitable organizations cannot give you everything you need to prevent foreclosure, but if you are short $500 to $800 they usually can make it happen. There is no shame in asking or getting short-term help. When you get back on your feet, donate the money back to the organization so they can help the next family!
2. Loan Modification
You can and should request a loan modification from the mortgage lender. This will usually lower your payments, allow you to pay off the delinquent balance at the end of the loan term, and prevent foreclosure.
You will need to fill out the loan modification request which can be time-consuming, but once completed in accordance with federal and state laws the mortgage lender is required to accept, process, and provide loan modifications to borrowers in need.
Unfortunately, you need to be prepared for this to be a very frustrating and cumbersome process. You will need to send the mortgage company the same document 10 times – because they claim they never received it the previous 9 times (seriously, this happens all the time). Just keep sending the documents, keeping detailed records of everything you have done, and you will have a very good chance of receiving a loan modification.
The good part, since the mortgage company is usually required to stop the foreclosure process, you will prevent the foreclosure in the short term, and if they approve the loan modification request prevent the foreclosure altogether.
3. File for Bankruptcy
If none of the above options are feasible, another option is to file for bankruptcy. This will immediately prevent foreclosure in the short-term, allows you the opportunity to restructure your debt, and keep your home. Due to the complicated nature of bankruptcy, this is almost always handled by an experienced bankruptcy attorney.
4. Deed in Lieu of Foreclosure
No article on “How to Prevent Foreclosure,” would be complete without discussing doing a deed in lieu of foreclosure. This is a simple process, you agree to give the bank the house without a fight and the bank agrees to accept it and consider your loan paid off. You get to move on without any liability for the outstanding debt.
This is the legal process to prevent foreclosure and give the home back to the lender. For many lenders, this is can be an attractive alternative as they avoid the cost and time necessary to foreclose.
This process also has numerous nuances and is usually handled by an experienced real estate attorney.
5. Do a Short Sale
If you realize that you cannot afford the house and just need a way to limit the damage to your credit rating, get the time to move out in an orderly fashion, and prevent foreclosure you can work with the lender to do a short sale. Banks understand that the foreclosure process and maintaining a vacant home is very expensive and when foreclosed the value of the property is now substantially lower than a typical owner-occupied home.
Therefore, many banks will work with the homeowner to prevent foreclosure and agree to work together to sell the home for the highest possible price. Under the terms of a short sale, you agree to live in, maintain, market, and sell the home for the highest possible price. Once sold, you agree to voluntarily move out and leave the home in good condition.
In return, the lender typically agrees to accept the sales price as full satisfaction of the loan, leaving you owing nothing. This is another way to prevent foreclosure that can be a win-win for both parties. Since there are many nuances to a short sale, you will be best served by engaging an experienced real estate attorney or knowledgeable real estate agent to assist you.
6. Sell Your Home To OutFactors
The final and we think the best way to prevent foreclosure is to simply sell your home to a home cash buyer, like OutFactors, and use the funds received to pay off the loan. Companies that buy houses, like OutFactors, are home cash buyers that will buy the home as-is.
There are many benefits to selling your home to a home cash buyer like OutFactors, including:
- You get paid immediate cash for your house. You will get the funds you need in 10 days or less.
- When you sell to a cash for home buyer, you “Sell House As-Is”. That means no repairs or cleaning required
- You can choose your move-out date. Need a few weeks, perhaps a month? A home cash buyer like OutFactors is flexible and will work with you.
- We have a team of experienced home cash buyers that know how to prevent foreclosure.
At OutFactors, we have many cash for house programs that can help you. Ask about our sell and Stay Program that will prevent foreclosure and allow the family to remain living in the home for as long as they want.
OutFactors Cash for House Programs
Selling to a cash for house buyer like OutFactors is a pretty straightforward process but the sooner you get it done, the less damage there will be to your credit rating and the more money that will go into your pocket versus paying the lenders ridiculously high legal fees and other expenses.
For additional information on how we can help please visit OutFactors.com and if you are ready to get your fast and free cash for house offer please click here. The people at OutFactors are super easy to talk to and will answer all of your questions. And with the OutFactor Sell and Stay Program, you can prevent foreclosure and even continue to live in the home.
We will always treat you with dignity and respect – so call us at any time with questions or if you would like a cash for house offer to buy your home as-is.
We hope the above helps, but please understand that this is not legal advice (we are not attorneys) and every situation is different. Please use the above information as potential topics to discuss with your financial advisor or attorney.
539 West Commerce Street
Dallas, Texas 75208
How to Prevent Foreclosure | Home Cash Buyer | OutFactors — Dallas Fort Worth, Texas