Did you receive a Notice of Default from your bank or lender? We understand how this can be very unsettling — you’ve gone through a huge deal to purchase your home, and now it’s being taken away from you.
But breathe and know that you are not alone. In fact, according to the FDIC, 1 in 200 homes will face foreclosure each year. This is, in part, due to the fact that 60% of homeowners wished they had a better understanding of the mortgage and the payment information before buying a house. So, if you’re behind on your mortgage payment, don’t fall off the beat because you still have a chance to avoid home foreclosure.
Now let’s take some of the frustration out of this by giving you some great options to stop foreclosure.
The earlier you start working through your options, the better your outcome. Early action allows you to protect your credit better and keep more of the equity you have in your home.
If you haven’t called the agency that issued the foreclosure notice yet, call them today. Banks or lenders are terrified about costly foreclosure fees, so they are very open to negotiating with you. You can:
- Ask how you can qualify for a reinstatement
- Apply for short refinancing
- Ask for a forbearance
- Propose a repayment plan
- Ask to modify your loan
- Have your bank file a partial claim (for FHA loans)
According to Semrad, a law firm specializing in bankruptcy, Georgia is one of the states with the shortest average foreclosure timeline. Nationally, it takes about 120 days from the issuance of the Notice of Default up to foreclosure. However, for the Peach State, it’s only 60 days. So, if you don’t want your lender and the court to feel that you’ve permanently abandoned your mortgage responsibilities, get in touch with your lender right away.
Talk to Your Trusted Financial Advisor
Second, talk with a trusted financial advisor. This might be a mortgage lender, a banker, a credit specialist, or a lawyer. It’s crucial that they have experience dealing with late mortgage payments and can help you navigate your financial options. Your financial advisor would be able to expound on the six options written above and guide you on which one would be the most suitable option given your situation.
Additionally, if you still cannot guarantee payment even if the bank has adjusted your mortgage plan, you might want to consider a short sale. Yes, unfortunately, a short sale means selling your home. But at least you get to preserve your credit. Your trusted financial advisor should be able to go through all the pros and cons of a short sale with you.
Talk to an Experienced Norcross Real Estate Agent
Your third step is to talk with a Norcross real estate agent who has experience selling homes that are at risk of foreclosure. If you want to go for a short sale, you need to tap the services of a real estate agent. Since time is ticking after the Notice of Default, you should be able to sell your house fast before your court schedule. A very experienced Norcross real estate agent will have the proper knowledge to help you navigate the short sale process.
Generally, in a short sale, you’d have to:
- Submit a Letter of Authorization to your lender, allowing them to speak directly with your real estate agent
- Prepare a Net Sheet
- Write a Hardship Letter
- Present a Proof of Income & Assets
- Do a comparative market analysis
- Sell your house following the normal closing process
Remember that you’ll have to give your lender copies of all documents involved in the short sale, including the purchase agreement and listing agreement. Again, if you found a reliable real estate agent, he/she should be familiar with this.
Sell to A Local Home Buyer Like Us
If you don’t find a market buyer in time, Spire Home Buyers would be happy to walk you through which options might be best for you. We can also connect you with our trusted financial providers and real estate agents.
If not, you can sell to a local home buyer like us. Spire Property Solutions is a professional home buyer in Norcross, Georgia, and we can help you avoid foreclosure and protect your credit record.
We buy houses for Cash in the Norcross area, and we can close in as fast as seven days. You can sell your home quickly in an as-is condition and keep more of your home equity. Remember, a home foreclosure doesn’t have to be scary or depressing. You don’t have to lose everything from this asset. You aren’t alone, and you have options if you act now. To get started, please don’t hesitate to reach out by filling out the form below or calling (678) 318-1801.