How to Avoid Foreclosure
If you are reading this article you are probably facing some sort of financial hardship where you have fallen behind on your mortgage & foreclosure may happen in the near future. The most important thing I can tell you is that You Can Avoid Foreclosure if you take the right steps!
Even though you have stopped paying on the mortgage is does not mean the bank will be knocking at your door right away to take back the home. Typically in Wisconsin a foreclosure sale takes anywhere from 6-12 months. In this time period you will receive several letters from your lender & attorneys given you notice regarding the foreclosure sale.
One thing to note when you fall behind on payments, most lenders do not allow partial payments. This means that in order to bring the mortgage back to current you have to pay your missed mortgage payment & your current mortgage payment plus any fees. Don’t get caught in a trap thinking that you can just wait a couple months then start making your mortgage payment again because the bank will not accept it.
Now, what is the process like for avoiding a foreclosure? Well it can be very simple or a little bit more complicated based upon the amount of equity in your home. Equity for those who don’t know is the current value of the house minus what you owe on the mortgage. If you have equity in the house you can sell the house outright without any issues. It will be like a normal home sale process & you can move on with your life.
Things you do have to consider when selling in foreclosure is what is the current condition of the house? If it is in disrepair I would highly recommend reaching out to a real estate investment company to buy it as-is. Another thing to consider is the amount of time before the sheriff sale. The lender will keep pursueing foreclosure even if you are trying to sell, so you might not have a lot of time.
You now might be asking, “what if I am underwater on my property?”. The only option in this case is a short sale. Even though the name says “short”, typically this process can take anywhere from 3-12 months. A short sale is the process of negotiating with the bank to accept a lower value then what is owed on the mortgage. For tax implications of a short sale please speak with a professional. Here at CB Home Solutions we specialize in short sales & helping out clients avoid foreclosure.
Now that we have went over the details of how to avoid foreclosure you may be wondering what your next step is… For a no obligation call with our company please fill out the form below or call us at 920-215-4201. We will guide you through the process & assist you in choosing the right steps.
Look forward to speaking soon
– Carter, CB Home Solutions