Do You Know How To Prevent A Foreclosure?

Do You Know How To Prevent A Foreclosure?

by

Melissa Gifford

Reasons for Foreclosure

Due to the high rate of foreclosure recently you may start to ask are people just being irresponsible or is there an underlying reason behind all of it. A lot of people say that homeowners just got in over their heads with the house payment and then realized that they couldn\’t avoid the foreclosure. Every situation is a little bit different and there is not any one right answer for the problem of rising foreclosures but you can solve the problem by going through one of several avenues.

Many homeowners didn\’t go into the home buying process with the intention of not paying their note but do their best to make timely payments each month and are successful until something happens to detract from that goal. The homeowner may lose their job, experience a life threatening illness, and go through a divorce or family hardship, among so many other variables. These variables can be things the homeowner didn\’t plan for and has no control over. Even the most careful planner can have events happen that are out of their control and should not feel as though they did something wrong. Life happened and how you come back from it is the important thing. By not dwelling on the actual foreclosure but the reason behind it, you can do your best to avoid a situation like this in the future. There is a reason for the attitude of living from your mistakes and many times people tend to blame others rather than doing what they can to move forward. Take what you\’ve learned and create a new future for yourself.

Options For A Fast House Sale

If you are forced to sell a house by owner, after several unsuccessful months, you may be realizing that it will not sell for the price you need it to. This is okay as long as you can sell it quickly. The time frame is now the important factor. In order for you to avoid foreclosure and the hit to your credit, you need to sell the house, even for a lower price. A short sale or fast house sale is an option but not a viable one for you right now. The short sale process can take several months of waiting and negotiating. You don\’t have the means to cover the payments during the interim. The short sale means that the bank will accept less money from a potential buyer than what the house appraises at or what you still owe on it. The bank can take a long time in deciding if they will approve the short sale or not and in the process you can be forced to foreclose.

Selling To A Local Investor

The investment purchase will move faster as most investors have the money readily available to purchase the houses as they become available. This can save you from foreclosure in the long run. You may end up paying a small difference on what the investor pays for the house and your final mortgage amount but that will be a doable payment as it will be less than a mortgage payment. You can also take the different amount to your bank or credit union and obtain a lower interest loan for that amount. Not only will this lower your payments but it can be a regular loan you just pay off each month. This is a smart avenue to prevent foreclosure. While it may seem unconventional, it is a great way to avoid foreclosure in a quick manner. The investment companies can close quickly and pay a fair amount. With this method, you can avoid foreclosure in a logical manner and do it quickly.

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Article Source:

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