What Is Foreclosure?
Foreclosure is a legal process that a lender undertakes to repossess a real estate property from a homeowner as a result of several missed mortgage repayments. If you ever find yourself in such a situation as a distressed homeowner, the best option is to approach your mortgage lender as soon as possible to prevent your property from being foreclosed upon.
If you are looking for ideas on how to avoid this situation, following are 7 ways to prevent foreclosure;
1. Mortgage Forbearance
Mortgage forbearance is an agreement that you sign with your lender allowing you to temporarily pay low interest amount or skip payments for several months. It’s issued in cases of a temporary hardship such as job loss or illness. Be advised, at the end of your extension you will need to pay the past due balance in full.
2. Loan Modification
Under a mortgage loan modification, your lender agrees to modify the terms of your loan. They can allow you to pay lower affordable amounts every month or increase your loan repayment period.
3. Pay Down Arrears
This is where the lender agrees to offer a structured repayment schedule to allow you get over a specific period of time. Your mortgage amount remains unchanged but your repayment terms are restructured.
4. Short Sale
A short sale is where the lender allows you to sell your house for less than the loan amount you owe on your mortgage.
5. Pay off Balance in Full
Just as the name suggests, this is where a homeowner commits to honor the loan repayment obligations and promises to settle the remaining balance in full.
6. Deed of Lieu
A deed-in-lieu is where a homeowner agrees with the mortgage lender to hand over the property peacefully and move out to avoid foreclosure. In some instances, a deed-in-lieu can comprise of “cash-for-keys” program to help you move out and relocate.
7. Professional Home Buyer
This is where you sell your home to a cash buyer. Most cash buyers are real estate investors, such as Capital Real Estate Group, LLC. They provide a cash offer and typically fast closings to distressed home owners. The home can be sold as is, and in some cases they can help get your mortgage current and take over your payments.
Regardless of which option(s) above you are considering, Capital Real Estate Group, LLC will be happy to discuss options with you. Please reach out to us if you want to learn more or need help figuring out which solution might work best for your needs.
dealing with a Pre - Foreclosure situation?
Capital Real Estate, LLC offers a few options if you are looking to exit your current situation. It does not matter if you are behind on payments, have a lien on the property, inherited a property, or have little to no equity. Reach out to us through our contact form and let’s discuss it.