Foreclosure: What It Is and How to Avoid It

When someone buys a home, they go into it intending to stay on top of their mortgage payments. Unfortunately for some, changes in circumstances may prevent them from doing that. When that happens, the lender may initiate foreclosure proceedings. Foreclosure is the process through which the lender attempts to recoup their losses. To do this, they’ll take ownership of the home and attempt to sell it.

Discuss Options with Your Lender

No one wants to lose their home. The first thing to do if you aren’t able to make payments is to discuss your options with your lender. Remember, it’s in everyone’s best interests for you to continue to make payments. The lender has no use for a house beyond making money from it, and the easiest way for them to do that is for you to continue paying them. See if you can work out a repayment plan to cover missed payments. You could also try requesting a mortgage forbearance or a loan modification.

Sign a Deed in Lieu of Foreclosure

Signing a deed in lieu of foreclosure is a lot like going through the entirety of the foreclosure process in that you no longer own the home by the end of it. There is one important difference, however: you voluntarily transfer ownership of the house to the lender. That releases you from the responsibility of making mortgage payments. The lender still ends up owning the home, but it stops the foreclosure proceedings.

Sell Your Home

Sometimes the best option is to cut your losses and sell your home. If discussing your options with your lender doesn’t yield the results you need, this may be the best option. That is especially true if your home is worth more than what you owe the lender. You can sell the house quickly to a professional home buying company like WNY Home Buyers, pay back the lender, and use what’s left for whatever you think is best. Otherwise, see if your lender will accept a short sale.

Foreclosure can be devastating for homeowners. The consequences go beyond losing your home. To add insult to injury, being foreclosed on will also hurt your credit. That can make it extremely difficult to get another mortgage in the future. If you are no longer able to make mortgage payments, contact WNY Home Buyers. If our offer works for you, we can help you sell your home fast enough that you could limit the negative impacts you face.

Need to sell your home fast? WNY Home Buyers is ready to make you an offer! Click here to take the first step towards your free, no-obligation cash offer today!

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