Local IN homeowners who are facing a financial challenge may find themselves in foreclosure.
Foreclosure is when the mortgage loan doesn’t get paid back and the bank begins the process to take ownership of the property to recoup its losses.
If you find yourself entering the foreclosure process, you might wonder if there is anything you can do about it. You will find, that yes! There is hope! Read on to save your house from foreclosure.
In this blog post, you’ll read about a few foreclosure prevention measures in Fort Wayne that you can take to keep your home from foreclosure.
Foreclosure prevention measures in Fort Wayne IN
These foreclosure prevention measures might not all work in your situation but we’re telling you about them so you can make the decision for yourself:
1. Pay off your mortgage / sell your property. The quickest and easiest way to end the foreclosure process is to pay off your mortgage. After all, this is all the banks wanted in the first place so they would be happy to let you stay in your home and they get their money back. Admittedly, this is not always possible, which is perhaps the reason that you’re in foreclosure in the first place, or you don’t have the funds. This may be the easiest way, but don’t worry, there are more methods if this one doesn’t work for you.
2. Work out a deal with your bank. Sometimes you can work out a deal with your bank where you sit down with a mortgage or foreclosure specialist and talk to them about changing the structure of your mortgage. Perhaps your payments get spread out so they are lower each month, for example and more affordable. Just make sure that the deal works for you — you don’t want to just repeat the process. Banks may not work out a deal for you, so keep reading if you’re still worried that this isn’t the solution.
3. Do a short sale. A short sale is when you sell the property and use the proceeds of the sale to pay down or pay off your outstanding amount with the bank. This keeps a foreclosure from impacting your credit score and it gets the bank off your back! This is helpful in the way that you can get money in a quick sale. Short sales are fast, and efficient. The bank will go away, and you’re free of debt.
4. Give your deed in lieu. Another option would be a deed-in-lieu-of-foreclosure, which basically means that you will hand over the deed to your house to the bank and they agree not to put you through foreclosure. Only if you owe the amount that the house is worth, approximately, that is. If not, the bank may pursue the difference.
5. File for bankruptcy. In some ways, a bankruptcy is far more dramatic than a foreclosure because it impacts your whole life. However, once you file for bankruptcy, the foreclosure process has to stop so it’s still a foreclosure prevention measure. This is okay for some people, but if you don’t want a bankruptcy, go with one of the other options.
If you’re not sure which one to do, consider this: If you can afford payments and you want to stay in the house then a foreclosure workout arrangement (#2) is probably your best option.
If you want to put everything behind you and move on with your life then consider selling your home and paying off your mortgage with that money. Sell your house with us for reliable service, and cash.