What to do if you’re facing foreclosure
The pandemic has led to a growing number of people facing foreclosure once the moratoriums expire. Many others are behind on their payments but are still trying to decide what to do next. When finally realize they just cannot afford to keep paying the mortgage on their home they are often not sure just what to do next.
Some homeowners try to get a loan modification, only to be turned down by their bank. Some just decide to stay in the house, stop making payments and wait until the house sells at auction. Some turn over the keys to the bank in exchange for a cancellation of the mortgage. This is called “cash for keys” or officially a Deed In Lieu of payment in full. Others decide to just abandon the home thinking the bank will take it in the near future.
I can tell you of one case where the bank never foreclosed. After the couple abandoned the house, thieves went in a stripped everything out of the house including the wiring. When the service company notified the bank they decided to stop the foreclosure process since there was no way of selling the house for anywhere near the amount of the loan. So years later I contacted the owner and we went over the condition of the house and all the Code Enforcement, late fees and attorneys fees the bank had been adding to his mortgage balance. He was shocked he was still the owner.
Walking away leaves a long term scar on your credit history. That means ANYTHING you buy on credit going forward will cost you more because you are considered a higher risk. That includes, cars, clothing, tools and home repairs.
We buy houses in foreclosure
An alternative the main press rarely ever talks about is selling the house to an we buy houses type of investor. Like Rapid Home Deals. We have several plans to buy houses in foreclosure depending on how much equity there is in the house and how far out the court date is set. Give us a call today or fill out the short form below. We look forward to talking to you to see if we can work out a plan that fits your particular needs.