Sadly, the rate of foreclosure is increasing in America. According to Statista, the foreclosure filing rate was 1.16% in the USA in 2020 as compared to 0.36% in 2019. Among the US states, Nevada is at the highest foreclosure rate with one in every 3959 houses at the foreclosure filing. This, of course, was partially due to COVID-19, despite federal aid programs.
Foreclosure occurs if you fail to pay your mortgage amount to your lender. The lender will seize and sell your home to recoup his money. You will be left with nothing in such a situation.
If you are also at the risk of foreclosure, you're not alone and you're not helpless. There are some proven ways to save your property from home and your credit.
Sell Home For Cash
As with the dramatic increase in the foreclosure rate, more and more homeowners are choosing to sell their home for cash.
If you are behind the mortgage and your lender or bank has filed you for foreclosure, selling the home for cash can save you from a great loss. Most cash for home companies will sell your home for what you owe and more to help you get back on your feet. It's a quick process and you choose the closing time, meaning you can get the money you need in a week.
In just three steps, you can save your home from foreclosure.
Skip The Extra Fees
Cash buyers or companies are always ready to buy your house for cash in its present condition. No need for renovations, inspections, repairs, MLS fees, and real estate agent fees.
Fair Market Value
Another reason for selling the house for cash in foreclosure is you will get a fair market price for your property. Most cash for home companies will give you enough to cover your remaining mortgage and then some. The best part? You get money without tanking your credit - you can avoid foreclosure and have some money in your pocket to get a head start on finding a new home.
Get Cash In Days
No months for approval or paperwork, get the cash in just one week or two. Selling a home for cash is hassle free-no need for the open homes, inspections, and bank approval. Easily pay your mortgage without foreclosure and without tanking your credit.
Enter into a Forbearance Agreement
If you have a solid reason why you cannot pay the load, enter into the forbearance agreement with your lender. These are uncommon, but not unheard of. If you present your lender with a valid reason for not being able to pay your mortgage, and a solid reason for them to believe that you will have the funds in the future, then they may agree to a forbearance agreement. But, what is it?
A forbearance agreement provides protection from foreclosure. The lender pauses or reduces the payment for a specific time period - it's a grace period on your payments. IYou will have to repay the suspended amount once the agreement is over. The payment will include all the interest, taxes, principal, and insurance.
Forbearance agreement is the temporary solution to stop the foreclosure if the delinquent borrower has financial issues. Typically the forbearance period depends on your loan type, generally, it lasts from two to six months but it can be extended to 12 and 18 months. We don't recommend taking that long of an agreement due to interest, so just keep that in mind.
Reinstate Your Loan
Reinstatement of your loan allows you to avoid foreclosure by reducing what you pay on your mortgage. These are generally more common if you have decent credit, a good history of loan payments, and are financially stable.
You may be asking yourself: how is someone like that going to foreclose? Homes are expensive and mortgages can easily take more money than necessary out of a person's pocket. Additionally, emergencies happen. You never know when your home, which you've been able to afford for years, will suddenly be out of your budget for the next few months or years.
Many loan servicers and lenders provide the right of reinstatement of a loan as a part of your agreement. If you have enough cash on hand, call your lender and figure out if you can get your loan payments reduced!
Final Thoughts
If your house is at risk of foreclosure, you should opt for immediate options without a burden on your budget. Various ways and terms can save your home depending upon your lender and your present situation. If you are unable to pay the mortgages monthly, the best way is to sell your home for cash before foreclosure. You can make direct contact with the company to sell your house at market rates and pay off the mortgage and save your home.
You can suspend or reduce the monthly mortgage by the forbearance agreement. If you are financially stable, paying the full past mortgages by loan reinstatement can also be a good option. All these options can protect your home from foreclosure - look into them as quickly as you can to save your home, your credit, and your financial future!
