How to Stop a Foreclosure on Your Home
How do I stop a foreclosure on my home?
There are typically four options that a homeowner has to stop a foreclosure on their home.
Depending on your lender, you might have three options to prevent the foreclosure that include: a short payoff, a short sale, or they may accept a deed in lieu of foreclosure. (These options need to be approved by the lender.)
In a short payoff or short sale, the lender accepts less than what is owed on the mortgage. In this case, you would not be allowed to profit since the bank is effectively taking a loss.
With a deed in lieu of foreclosure, you are basically signing the deed over to the lender to avoid the foreclosure. Again, you will not get any equity back or profit with this option.
Typically the short payoff has the least effect on your credit, followed by the short sale, followed by deed in lieu of foreclosure, and finally foreclosure having the greatest and longest negative impact on your credit.
The fourth option to avoid foreclosure is selling the home before the scheduled foreclosure auction.
Most conventional buyers are not in a position to come up with the cash reserves required to buy homes with back payments, since there is a loan reinstatement amount. The reinstatement amount includes all the back payments (principal + interest), escrow advances, attorney fees, and more.
Because of the short deadline required to close before the foreclosure auction, as well as the funds required to reinstate or pay off the loan, selling to an experienced investor can be an ideal option if you’re wanting to avoid the foreclosure and possibly profit or get a portion of your equity out of the home.
If your house is sold at foreclosure, it’s very likely that you will not profit or get your equity back. If the auction price is higher than the foreclosure pay-off amount, this would create surplus funds, which that you will have to apply with the state to determine if you’ll receive these funds back.
And if your home is need of a lot of repairs, you will probably struggle finding a retail buyer that will buy the house “as-is”.
We regularly buy houses that require work, and even houses that won’t qualify for bank financing. Moreover, we are cash buyers determined to help people in situations like yours put some money in your pocket and move on with your life. Contact us today to see if we can help you make a profit on your home.
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We want you to get the most money for your house. If you have a house in North or South Carolina, sell to us today to see how much you can get out of your house!