Everyone falls into financial trouble from time to time. Although it may not be your fault, this can prevent you from keeping up with your mortgage payments. When you get too far behind, it’s time to start looking for some options.
Understanding Foreclosures
Hearing that you are facing foreclosure can be frightening and you might think that you don’t have a way out. Before you panic, take some time to actually understand what it means to be foreclosed on. A foreclosure occurs when you’ve fallen behind on your mortgage payments and the mortgage lender can legally repossess and sell your home. You will be given several notices before this happens. First, you will be notified that you’re behind on your payments and you will be given a period of time to fix this. If you’re still behind, you’re then notified that the house will be foreclosed on and you will be given a foreclosure sale notice. In some states, even after the foreclosure sale has taken place you have time to reclaim your home.
Options If You’re Behind on Payments
If you’ve fallen behind on your payments, you have a couple of options to pursue. You can ask for a forbearance. This is a period in which your payments are suspended so you have time to get back on your feet. Eventually, you will pay back the payments you missed. It’s also possible to begin a repayment plan. With this option, the debt you owe will be spread out over your next few payments. Other options include refinancing your home, renegotiating your mortgage payments, or even asking for a payment or two to be forgiven. If you’re in no position to continue paying or be able to pay soon, then you might consider selling your home.
Selling Your Home
When facing a foreclosure, you have a small window in which you can sell your home. If you have not been given a foreclosure notice yet, you have more freedom in how you sell. You can take the time to make repairs or stage your home so you can get a higher price. When you sell, part of the sale will go toward paying off your mortgage, including your debts. If you’ve already been given a foreclosure notice, you should talk with your lender about selling. In these situations, the home sale will typically be fast and the home will sell for below its actual value. Usually, most of the money will go toward paying off the mortgage.
Selling your home is a good decision if you’re behind on your payments and know you won’t be financially stable for a while. It can help you avoid having a foreclosure on your credit report and you can move on to a more manageable situation. Your main goal should be selling your home quickly.
A cash sale can allow you to sell your home in 30 days or less. Click here to learn how to sell your home to Joe Homebuyer.