Sell Your House Before Foreclosure In Little Rock
The Dangers Of, And How To Avoid, Foreclosure
What Is Foreclosure And How Do I Avoid It?
Foreclosure is a situation in which a homeowner is unable to make mortgage payments as required, which allows the lender to seize the property, evict the homeowner and sell the home, as stipulated in the mortgage contract.
Losing one’s home is an emotionally devastating process, one that you should never face alone.
If you allow them to repossess your home, you could lose everything you’ve put into it. We can help save your investment.
Behind On Your Mortgage Payments?
Having trouble keeping up with your mortgage? Have a friend who desperately needs help selling their home? This is one of the things we specialize in, offering hope to people in need.
The first thing you need to know is the bank or mortgage company does not want the house back. They absolutely would prefer to help you pay your debt and stay in the home.
Want To Avoid Foreclosure And Still Stay In Your Home?
If you hope to stay in your home, you need to talk to your lender.
I know that’s scary, when that phone’s ringing, and you know they want a commitment of when you’re going to get caught up on your payments. When you don’t know when and how that’s going to happen, it’s a tough conversation.
Start that conversation, perhaps you call them when you have your thoughts organized, instead of answering one of those collection calls. Your lender may offer some solutions, depending on your situation:
- Loan Modifications: The lender can restructure some elements of our mortgage to make it more affordable. That may include changing the interest rate, convert from a variable interest rate to a fixed interest rate, or extend the length of the loan. For this to happen, you have to prove you can’t make the mortgage payment as is due to a hardship you are currently experiencing. They may offer this for a trial period at first, to make sure you can make the payments with this modification. You’ll be required to provide some documentation to qualify for this like a financial statement, proof of income, your most recent tax returns, bank statements, and a hardship statement. A loan modification can help homeowners avoid foreclosure, but you have to talk to your lender to make this happen!
- Forbearance Agreement: Loan modification is a long term solution to your problem, while a forbearance agreement is a short-term solution. It depends what you’re facing which is the best solution for you. With this agreement, the lender suspends or reduces payment for a certain period of time, and they agree not to pursue foreclosure during that period. In return, you are required to catch up payments, including interest, and other fees. This agreement varies from lender to lender, but it’s another solution that allows you to keep living in the home while facing a temporary hardship.
- Repayment Plan: If you’ve missed a number of payments due to a hardship, this is simply a plan that allows you to spread the costs of those payments over a certain period of time to get caught up on your payments. The nice thing about this is it doesn’t extend the length of your mortgage, instead just gets you caught up adding a little more to each payment you make. A three- to six-month repayment period is typical.The key to all three of these options is communicating with the lender. They’ll work with you and your situation to find the best solution for you. But, you have to have some income to successfully navigate all three of these solutions.
Thinking Of Walking Away From Your Home?
If you’ve given up, there’s no hope you can get caught up, and you just need some relief, it may be time to call us.
Sometimes that’s a good idea anyway because more minds working on an issue like this can find a solution faster.
DON’T WALK AWAY! That’s not a good solution for you, even When you walk away, your home will enter foreclosure. Foreclosure lowers your credit score 85 to 160 points and affects your credit for seven years. That impacts your ability to get housing, a job, and credit. This is not your best long term solution, even though it appeals to you in the short term. Here are a couple of options you might consider first:
- Short Sale: Short sales are usually the best option when your home’s resale value is less than what you owe on your mortgage. A few things usually need to be true for a lender to approve a short sale. First, the homeowner must demonstrate a hardship. Second, the homeowner must be so far behind on payments that they can’t catch up. And, last, the housing must have declined so much OR the house is in such disrepair, that the house if worth less than the remaining balance on the mortgage. The hardship can be unemployment, reduced income, illness, divorce, military service, death, incarceration, or unexpected home repairs, to name just a few. Your credit will take a hit with a short sale, but not for as many years as with a foreclosure. You’ll need a Realtor with experience in short sale listings, and I am one of those in this area. Reach out to me, and I’ll help you navigate this process.
- Deed in Lieu of Foreclosure: As I said earlier, your lender doesn’t want your house back, so anything is better than a foreclosure in their minds. Here’s a solution that’s better than a full-blown foreclosure. If you’ve been discussing your situation with the lender, and none of these other solutions will work in your situation, the lender may accept your Deed in Lieu of Foreclosure. In this case, you simply sign your house back over to them, in exchange for them canceling your debt. It saves them the time or expense of foreclosing on your home, but why would a homeowner do this. In addition to receiving forgiveness or reduction of debt, you also might receive some cash as part of the deal, and the lender may give you some additional time to live in the home before moving. If you have equity in the home, this isn’t your best option. Selling your home is always the best option, so if you need to delay the foreclosure in order to have more time to sell it, you might want to consider Chapter 13 bankruptcy. In the midst of this decision, it would be wise to seek the advice of an attorney!
We Offer Solutions For Your Foreclosure Dilemma
We really want you to understand that you have options.
We know this situation stirs up hopelessness and desperation, but there’s still hope. We want to be agents of hope for anyone facing potential foreclosure.
As both a Realtor and a Real Estate Investor, we can tour your home, run the numbers, and give you options that help you avoid a hit to your credit and foreclosure. If you’ve been searching for a solution, let’s talk today, and we’ll give you the power to choose your solution!
Sell Your Little Rock House Before Foreclosure
You could Sell your house for cash. In some
The longer you wait to get help, the harder it may be to get assistance.
Life After Foreclosure
If you have experienced a foreclosure, the road to recovery can be challenging, but there are steps you can take to get yourself and your family moving forward to new housing, revitalizing your credit, and buying another home in the future.
Your immediate need is finding a new place to live. Reach out to the U.S. Department of Housing and Urban Development’s Office of Housing Counseling. Local HUD-approved counselors can help you work through your housing options. Your other immediate need is your children. If you’re staying in a new area, get them enrolled in school as soon as possible. And check your city or state department of social services if you need additional support such as SNAP benefits (food stamps).
Ready To Sell Your House?
Fill out the short form at the top of this page and you’ll get a generous offer in less than 24 hours.