So your property is in foreclosure and you are desperately trying to find a solution. Hopefully, this article can provide several solutions that will help you and your family weather the storm.
Foreclosure can have adverse effects on personal and business credit for up to 7 to 10 years. Some say that allowing foreclosure to happen is worse than declaring bankruptcy. Maybe it has something to do with the ‘American dream’ of owning a house and letting it be repossessed. Between the years of 2006 and 2010, everyone and their dog were losing their property. Fortunately, that doesn’t have to be you.
If your home does go into foreclosure, you could face a number of problems. The first is the most evident fact; your credit score will plummet at least 450 points and the foreclosure entry will stay on your credit for 7-10 years. After losing your home, it will be very difficult to get another one or even rent an apartment. You probably don’t like the idea of being homeless or living with friends and family. On top of that, the bank can go after you for what’s called a deficiency judgment. This occurs when your property is sold at auction, after being repossessed, for less than what you owe. So if your mortgage is for $200k and your property sold for only $100k at the courthouse, then you are responsible for the remaining $100,000. The bank can garnish your wages and sixteen assets you obtain until the $100,000 is paid off. Yes, it seems very oppressive, but that’s how the system works.
Banks these days have too much power and it is much better to get a solution instead of sitting around doing nothing.
Speaking of solutions, you can always sell your property before the auction date. In this way there will be no deficiency in the judgment and your credit will be saved. You will have a chance to move on with your life much sooner than 7-10 years. If you have capital, you can sell your home very quickly to a professional investor where you can close in as little as 20 days. You will be guided throughout the process from start to finish and you will not have to worry about any step of the procedure to sell your house.
You can also sign up for a solution called ‘Short Sale’. This solution takes more than 20 days, but it is worth it. If you owe more on your home than it’s worth, your mortgage balance may be reduced and your property sold with little effect on your credit, and in many cases, you won’t have to worry about the bank following you down. remaining balance. .
Lastly, you can also do something called a ‘Subject To’ acquisition. This solution implies that the buyer takes charge of his payments and/or updates them and takes possession of the property from that moment and frees him from any concern or responsibility. This is also a good solution if you owe exactly what the property is worth or a little more and you intend to maintain stellar credit by keeping your mortgage current, but you no longer intend to own the property.