The threat of foreclosure is always scary. You own your home and you love it. Yet, due to unfortunate circumstances, foreclosure may be upon you.
For local CA people facing foreclosure, the stress can be almost unbearable. Worse yet, the foreclosure process can take months or even years, stretching out the pain for longer than anyone wants.
Fortunately, you have options available to you here in CA—perhaps more options than you realize. There are many strategies that may enable you to avoid foreclosure or limit the financial damage caused by a foreclosure in the Central Valley. These are legal foreclosure avoidance strategies you can use to help avoid foreclosure so you can get on with your life.
In this article, you’ll read about 3 of the best ways that you can avoid foreclosure, though there are other ways to avoid foreclosure, as well. For more options, you may want to speak to a financial advisor and/or attorney. The goal of these strategies is to help you legally and ethically avoid foreclosure while reducing the pain and frustration that you’re facing. They can also help minimize any long-term financial commitment or burden to you. Not all of these strategies will apply in every situation but it’s important to know your options and figure out your best solution.
Strategy #1: Work out a deal with your lender
The first strategy is called a “foreclosure workout.” Sit down with your lender and tell them that you don’t think you can pay your full current mortgage obligation. However, you would still like to work with them and figure something out that will allow you to stay in your house and continue to pay your mortgage.
Contrary to popular belief, lenders don’t want to foreclose! They want customers who pay their mortgages (and interest fees), so lenders are often willing to work with homeowners to figure out a deal. This might include a temporary reprieve on your mortgage payments, or it might include a catch-up strategy where your outstanding mortgage payments are spread out more over time. Or, it might include a restructuring of the loan or the outstanding amounts that you owe.
Another option may be to sell the property as a short sale, which doesn’t allow you to keep the home but will satisfy the lender’s needs and allow you to avoid foreclosure. Whatever the solution is, it never hurts to talk to your lender to look at options that may work out for everyone.
Strategy #2. Bankruptcy
Filing for bankruptcy may seem like an extreme measure but it is certainly an option for avoiding foreclosure. When you file for bankruptcy, you indicate to all of your creditors that you are no longer able to pay your bills. Filing for bankruptcy will put a stop to the foreclosure process because all creditors must stop the collection process.
Filing for bankruptcy, though, is a major move that will hamper you financially for several years. You may have to sell off some of your assets in order to pay off your creditors. And, a bankruptcy will remain on your credit score for many years, which could impact everything from getting a loan to getting a car… even getting a job. This is usually a last-ditch effort if it’s your only hope to avoid foreclosure!
Strategy #3. Sell your house for cash in the Central Valley
The easiest way to get out from under an impending foreclosure is to sell your house to a cash investor. This will allow you to sell the property as-is (meaning no clean-up or repairs, no real estate agent fees, etc.) and get what you can back in cash to pay off your mortgage loan that’s about to default (or at least as much of it as you can to avoid serious financial ramifications).
Cash sales can close in as few as 7 days, so you’ll be able to get out from under your home very quickly. With Offer4Cash, you can name your closing date and we’ll work with you to find an agreeable solution. If you need a little extra time to move out, let us know. Otherwise, if you want to close fast and move on with your life, a cash sale will achieve these goals.