Over one million homeowners are past due on their mortgages, a shocking and concerning figure. Many people have fallen behind on their payments, digging into a deepening financial hole through accumulated missed payments and late fees.
They could be at risk of losing their homes once local restrictions on evictions and foreclosure expire, which could be as early as January. Unfortunately, some lenders and servicing companies have made little effort to help borrowers. Furthermore, many are confused by contradictory information, confused about their options, or simply overwhelmed.
Some lenders have provided forbearance relief programs; however, homeowners who are a part of such relief programs are still required to repay any missed or reduced payments in the future. Payments are not forgiven or erased, and there are different programs or options, depending on the type of your loan.
Unfortunately, many may face foreclosure when the lender takes back the property after the homeowner fails to make the required payments on a mortgage. A foreclosure will have a negative impact on your credit score and will likely prevent you from being able to purchase a home for years to come.
Sadly, the social, emotional, and financial consequences of foreclosure come with long-lasting implications.
Naturally, one would want to find ways to avoid such a situation. The possibility of losing your home can be extremely stressful. However, you’re not alone, and there are options available. Should you find yourself in a challenging situation where foreclosure may be on the table, you may want to explore the following options.
Filing For Bankruptcy
Though this is the last resort option, bankruptcy stops foreclosure dead in its tracks. Once you file for a bankruptcy petition, your mortgage lender will be prohibited from continuing collection activities. Bankruptcy is a way to buy more time to replace your lost job or recover financially.
Negotiate With Your Lender
Banks and other financial institutions are well aware homeowners are struggling during these testing times. If you have not missed a payment yet, you may have some leverage to negotiate your loan terms. You may be offered forbearance or even a mortgage modification.
Sell Your Home
For many struggling Seattle homeowners who are behind on mortgage payments, one of the best ways to prevent foreclosure is by selling your house in Seattle. However, it’s best to avoid traditional sale methods, such as selling with a real estate agent. When working with realtors, you should be prepared to expect the following:
- A real estate agent will have to list and advertise your home; they cannot guarantee they will find a buyer within the necessary timeline.
- A real estate agent will take a three to six percent commission out of the sale price.
- You will be expected to cover additional costs such as necessary repairs and closing costs.
You will need someone who can pay cash and purchase your home immediately. When you’re looking to avoid foreclosure, selling to a home buyer company can be your best option. You won’t have to go through all the work that goes into listing your home for sale. Nor will you be expected to pay for any staging or repairs.
The home buyer company will take care of everything and will be able to make you a cash offer. The best part is, you get to keep all the money from the sale. All the closing fees that come with the traditional home selling experience are gone.
The process is as easy as it can be; when you work with a reputable and trusted home buyer company, you’ll be able to avoid foreclosure and save money.