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Facing foreclosure is no joke. Knowing that you’re facing the possibility of getting kicked out of your own house is a scary experience.
Covid-19 has created a financial roller coaster where a significant number of people have lost their jobs and can no longer afford their mortgage payments.
Homeowners usually believe that once foreclosure starts, there’s nothing to do about it. But we’re here to inform you that there’s a way for you to prevent being foreclosed even when it already took place. Keep reading to find out how.
Foreclosure is the legal process where a lender tries to recover the borrower’s amount on a defaulted loan. The lender takes ownership of and sells the mortgaged property.
Foreclosure can happen once the borrower misses a single mortgage payment. The first time you miss a mortgage payment, you should expect a note in your mail informing you that you have 120 days before being foreclosed.
If you already received a note in your mail telling you about the 120 days you have before being foreclosed, it’s time to move quickly. There are multiple options available for homeowners to choose how they want to stop foreclosure. Let’s take a look at some of them:
This is a financial agreement between the borrower and the mortgage lender to reduce the monthly mortgage payments or even suspend the charges entirely. Forbearance is usually requested when a person is going through a problem that dramatically affects their ability to pay. These problems can be a severe illness or you losing your job.
It’s crucial to remember that you must get even with your missed mortgage payments once the forbearance agreement ends. You also should remember that interests will continue to accumulate interests on your loan, and you’ll still receive their monthly statements.
If you can reach a forbearance agreement with your lender, you’ll have a breaking period of 90 days. If you’re lucky, you can extend that period to 180 days.
During this process, the borrower will figure out a period with the lender to pay what they owe. The payment includes not only missing mortgage payments but also interests and penalties as well.
Reinstating a loan allows homeowners to stop the foreclosure by enabling them to get even on their payments. When the loan is finally restructured, you’ll be able to continue making payments on your debt.
You can seek a short term refinance plan with your lender if you’re facing foreclosure. A short refinance occurs when your lender assumes your debt and replaces it with a new restructured loan. The new loan usually includes a reduced balance that forgets about your debt to help you avoid foreclosure.
Banks or lenders usually prefer this method because they end up losing less money than if they were to foreclose your property. They also avoid starting an auction or selling process that it’s usually stressful and time-consuming.
The consequences of not taking action immediately when facing foreclosure can result in you getting kicked out of your property. The fastest and most reliable way to take action against foreclosure is to use a home buying company’s services.
If you want to sell a foreclosed home in Charlotte, NC, a home buying company can do it. Lenders most likely prefer their borrowers to use a home buying company before foreclosing them. This is mainly because borrowers don’t look forward to starting a selling process after a foreclosure occurs, as they lose money with these procedures most of the time.
A home buyer can provide you with the cash you need to pay off your mortgage debts in as little as seven days. Once you contact them, you can select the best day and time for them to visit your property. If they’re interested, they’ll make you an offer as fast as 24 hours. There’s no other method to solve your problem as quickly as a home buying company, but now you need to choose one wisely.
Here at Travis Buys Homes, we’re your ideal home buying company. When you’re trying to sell a foreclosed home in Charlotte, NC, there’s no better choice than us. We offer a reliable and transparent service where we only provide you a fair all-cash offer for your property.
The sooner you contact us, the sooner we can prevent foreclosure for you. Talk to us now to learn more about how we can help.