If the bank is threatening to take your property after all you have put into it, we can help you stop the foreclosure of your house in Baton Rouge! Keep reading to learn about what you can do to fight back!
Dealing with the unwelcome threat of foreclosure can be overwhelming for anyone. Losing your house is a horrible thought after putting so much of your own sweat into the biggest investment of your life. So many homeowners are facing the devastating feeling of not being able to make ends meet. The consequences can be brutal, not to mention the ugly mark it leaves on your credit. Foreclosure is a subject nobody wants to have on their hands. Luckily, though, you can do some things to avoid it. In this, our latest post, we help you learn some details in stopping the foreclosure of your house in Baton Rouge.
Call Your Bank
Really, most lenders would prefer to help you recover your balance rather than foreclose the house. After all, they are in the business of lending, not the real estate. The foreclosure process isn’t fun for either you or the lender. To foreclose a house, the lender must invest in a costly, time-consuming process that often ends with the lender losing money. Think of their many expenses! The lender will try to avoid this situation and recoup their costs, including working with you to find a solution. Use this willingness to your advantage! Your bank is your first stop for finding solutions to your foreclosure. If your payments have simply started lagging, you will likely be able to work out a repayment plan. But if a new circumstance makes it difficult to pay your mortgage in the future, taking action to stall the foreclosure long enough to sell your house might be your best chance. Just don’t tarry. Time is of the essence.
Sell Your House
A fast sale of your house is your best chance at paying your mortgage without damaging your credit. Listing your house in Baton Rouge with a realtor isn’t necessarily a guarantee to a quick sale. In fact, selling your house in this manner can take months, and can take you past the foreclosure date and the bank forecloses the listed house.
On the other hand, a direct sale to Louisiana Direct Home Buyers will allow you to make that quick sale for a great price. Working with our team will let you choose the closing date that fits your schedule best. With us, you can sell your house well before the bank comes knocking, and you don’t stress so much! Our process is fast, convenient, and always fair!
Use A Short Sale
Another way to avoid foreclosure by quickly selling your house in Baton Rouge is by using a short sale. A short sale occurs when your lender agrees to take the house for an amount less than what you owe them. They agree to take a loss on the house but remember from above that the foreclosure process is costly for them. The short sale process saves the lender the time and money of taking the resale process upon themselves. To take advantage of a short sale, you must apply to and meet the requirements of your lender’s short sale program. You’ll also need to consult a Broker Price Option to determine your property’s market value.
But we must tell you what our experience has been with short sales. In years past short sales have been advantageous to many homeowners. But since 2014 banks have tightened up on the process and times have really lengthened out. This has not worked well for homeowners because internal bank approval overruns the deadlines for foreclosure. We advise that if a short sale is sought, the homeowner at the same time has a backup offer from an investor.
As a last resort to avoid foreclosure, you can declare bankruptcy. When you declare bankruptcy, the bank cannot collect any debts from you. This includes the foreclosure of your home. Although you have relief from debt collectors, you are still responsible for anything you owe. Consequently, the bankruptcy court will help you set up plans to repay your debts.
We advise great caution before going this route. Declaring bankruptcy affects your chances of borrowing money in the future, so make sure you are making the right choice before signing any paperwork. There is also an issue not talked about enough. The IRS may declare forgiveness of debt you owe on the house as income, further complicating your road to recovery. AND more often than not, in our experience, the attorneys get the money, and you still lose the house.
No homeowner wants to lose their home to debt. If your mortgage payments are falling behind, don’t fret. Foreclosure is avoidable. You can sell your house before the bank forecloses the property.
There are many issues to face when you sign the receipt notice for the notice of default letter from the bank. Our happiest customers are those who have gotten us involved early in the process. We will honestly tell you what we can do.
Notice: We do not advise you since we are neither realtors nor financial advisors. We only tell you what we know and what we can do. We always advise our clients to seek the advice of professionals in the respective fields, whether it be an attorney, financial advisor, or real estate agent.