People fall behind on their mortgages every day. In our latest post, we can help you learn how to stop the bank from foreclosing on your Fort Myers house.
Foreclosure can be a difficult and frustrating process. Not only will you lose your house, but you will also lose your pride. It can be difficult for anyone to handle. But what you need to know is that it happens to people all the time. You are not the first person going through it, and you certainly won’t be the last. The good news is that if you are still in possession of your house, there are some things you can do to stop the banks.
Why Do Banks Foreclose?
Foreclosure by banks typically occurs after multiple missed payments, and it can affect even the most responsible individuals for various reasons. Events such as divorce, job loss, the passing of a loved one, the addition of a family member, or sudden illness are common causes of missed payments. Losing one’s home on top of already challenging circumstances can exacerbate the situation. If you’re unable to repay the outstanding amount to the bank, they may proceed with foreclosure, reclaiming the property and selling it at auction in an attempt to recover their losses.
What Can You Do To Stop It?
1) Find A Buyer Quickly
When you sell your house, the foreclosure process will stop in its tracks. You can try to find a buyer who can close quickly on your own, or you can call Sell My House Now USA, who will always pay you a fair and honest price for your Fort Myers house. If you sell on your own to a buyer using financing, the sale could end up taking weeks or months to be finalized, and by then, the bank may have already foreclosed. With a direct sale to Sell My House Now USA, you will typically be able to sell your house in only a few days.
2) Short Sale
If you find yourself in a situation where you owe more on your house than its current market value, a short sale could be a viable solution for you. A short sale occurs when the homeowner and the bank agree to sell the property for less than the outstanding mortgage balance. Banks typically agree to this when the home’s value has declined, and the homeowners are unable to keep up with payments. Opting for a short sale allows the bank to recover a portion of the debt without undergoing the lengthy foreclosure process. Importantly, a short sale typically has less negative impact on your credit compared to a foreclosure, making it a more favorable option for some homeowners.
3) Work Out A Deal
When you first realize you are having difficulties making your mortgage payment, give the bank a call first. They would rather work with you then deal with missed payments and foreclosure. Look into loan modification or changing the terms of your loan. You might be able to refinance and lower your payments. If you have missed a few payments, try to set up a payment plan to get back on track. Some lenders will agree to forbearance, forgiving the missed payment and adding it on to the end of your loan term. Before you do anything drastic, talk to the bank first. They are used to dealing with these situations and will likely have a solution to help you.
4) File For Bankruptcy
If you file for bankruptcy, the lenders cannot attempt to collect payment until the court allows it. Make sure you choose the right type for your needs, Chapter 7 or Chapter 13, and that you have talked this through with an attorney. Filing for bankruptcy can have adverse effects on you and your credit for years to come.