Missing a mortgage payment is a very common thing these days. Especially since the start of the pandemic in early March of 2020. Many fellow Americans have unfortunately been laid off or have seen their income reduced significantly, leading millions to face financial hardship. Residents of Kansas City, MO have not been the exception.
If you are one of the thousands of homeowners in Kansas City, MO currently facing foreclosure, don’t worry: you have options. You are not alone and help is available for homeowners just like you in this shaky situation. PR Newswire recently reported that Kansas City is one of 158 metropolitan statistical areas with at least 100,000 residential properties and at least 100 properties facing possible foreclosure. Unluckily, Kansas City has the highest “zombie rates” at 17.2 percent of properties in a foreclosure process. Avoid being part of this statistic. Foreclosure can be prevented and even terminated.
Preventing Foreclosure
If you’ve recently missed several mortgage payments, your lender has probably already started a foreclosure process on your property by filing a Notice of Default. A Notice of Default is a public notice filed through a court by your lender which states that you as a borrower is in default on their mortgage loan. Eventually, you will start to panic and think that the loss of your home is inevitable, but then again, do not worry as you have options before this happens. Here are several options to avoid foreclosure.
Negotiate a Repayment Plan
Before starting a long and stressful foreclosure process for both parties involved, your lender will most likely prefer to avoid one. You should be able to negotiate a deal or payment plan to get back on track with payments.
Sell Your House through a Home Buying Company
Before your lender has the chance to schedule an auction to offer your property, you can sell your house quickly with the help of a home buying company. Once you get an offer that is reasonable, the lender will most likely consider it as it will save them time and money. You should be able to find many Kansas City Home Buyers options to choose from.
Many home purchasing companies in the area offer simple and straightforward processes to help you find a quick solution. You can easily fill a short online form or you can give them a quick call to better understand the details of the property. Then someone should be contacting you back to set up a quick appointment to visit your property. Shortly after which you as the homeowner will be presented with a fair, written, and no-obligation cash offer.
Should you be accepting the offer, the Home Buying Company can close at a local reputable title company in as little as seven days. The same home buying company should also be taking care of any closing costs including fees and commissions. You will not need to list your house on MLS as a real estate agent would do, as they usually sign a contract with you to buy yours quickly no matter what condition your property is in. In other words, quick, and stress-free. Can’t get any better than that.
Declare Bankruptcy on your behalf
Declaring yourself bankrupt should make a foreclosure process stop. Federal law makes it illegal for any lender to continue with collection activities once you have filed for Bankruptcy. This option will only buy you time to get your situation back in order, so it would be wise from your end to consult with an attorney if bankruptcy is best for you or not before going down this road.
Signing Deed Back Over
By signing the deed back, you and your lender reach a consensual agreement that you cannot continue making your loan payments. The lender agrees to avoid putting you into foreclosure when you hand the property over in a friendly manner. This option is better known as a deed in lieu. It’s not the best option, as it will have a similar or same negative impact on your credit that foreclosing does.
As you may have read, missing a mortgage payment shouldn’t be the end of the world. Options are readily available for whichever your situation might be. Make sure you fully understand your options before choosing your plan of action. Reach out to a legal adviser and also reach out to your lender: they should want to avoid a foreclosure legal process as much as you. Only you know your current financial burden best, so do take your time to analyze which of these options works best for you.
