The entire country is facing an economic crisis and consumer credit troubles. As such, many homeowners find themselves struggling to remain in their home and prevent the foreclosure process. You might be in the middle of such a struggle yourself. Thankfully, you have options. Here are a few ways to prevent foreclosure in Houston.
If you have enough time before the foreclosure sale, then a loan payoff or refinancing can be an adequate solution. You should speak with the bank regarding a full payoff, however. In some cases, there may not be enough equity on the home for you to refinance the loan and pay off the full amount. You are a risk to any new lender, however.
Bankruptcy is a last-choice option for most homeowners. Declaring bankruptcy to prevent foreclosure only works for a short time. It is a delay until the bankruptcy court gives the go-ahead to proceed. Only use bankruptcy if you have massive debt.
A short sale is essentially an agreement with the bank in which you can sell your property for less than what you owe. The payment is then considered paid in full. If you decide to undergo a short sale, you must have all financial information present when you speak with your lender. They will want precise details. Furthermore, know that there may be tax implications with a short sale.
If you decide you would rather not keep the home, then you can avoid the worst of the foreclosure process by offering a “Deed in Lieu of Foreclosure.” Essentially, you make the bank an offer for the deed to prevent the foreclosure process altogether. You’ll want to negotiate with their loss mitigation department, though.
Lastly, and perhaps your most useful solution, is to speak with a house buyer in the area, like us. When you call the office, you’ll speak with an experienced real estate investor who wants to pay you cash for your property. Doing so can help you avoid the long, drawn-out process of foreclosure while putting money in your pocket.