Foreclosure can be a devastating experience for families in Texas. It can be an incredibly stressful time that can last for months or even years, and can leave families feeling hopeless. However, there are legal foreclosure avoidance strategies that can help you avoid this situation and move on with your life. In this blog post, we’ll explore three strategies that can help you legally and ethically avoid foreclosure in Dallas / Fort Worth. While not all of these strategies may be applicable to your specific situation, we are confident that at least one of these methods will help you to alleviate the pain and frustration of the foreclosure process.
One strategy to avoid foreclosure is loan modification. This involves working with your lender to modify your mortgage loan so that your monthly payments are more manageable. This may involve changing the interest rate or extending the life of the loan. In many cases, lenders are willing to work with homeowners to help them avoid foreclosure, and a loan modification may be the best option for you.
Another strategy to avoid foreclosure is a short sale. In a short sale, you sell your home for less than the balance on your mortgage. While this may not seem like an ideal situation, it can be a better option than allowing your home to go into foreclosure. A short sale can help you avoid the negative consequences of a foreclosure, such as damage to your credit score and difficulty obtaining a new loan.
Finally, you may consider working with a cash investor, like those at Greater Buyers, to buy your home before it goes into foreclosure. This option can provide a quick solution to the foreclosure process, allowing you to sell your home and avoid the negative consequences of a foreclosure. At Greater Buyers, we will buy your home as-is, meaning you won’t need to spend money on repairs or upgrades to make it more marketable. We also pay cash for your home, which means you can receive your money quickly and move on with your life.
In conclusion, foreclosure can be a daunting experience for families, but there are strategies available to help you avoid it. Whether you choose loan modification, a short sale, or working with a cash investor, there are ways to alleviate the pain and frustration of foreclosure while minimizing the long-term financial commitment or burden to you. Contact Greater Buyers today to learn more about how we can help you avoid foreclosure and move on with your life.
Strategy #1: Work out a deal with your lender
The first strategy is called a “foreclosure workout”. In a foreclosure workout, you’ll sit down with your lender and tell them that you don’t think you can pay your current mortgage obligation but you’d like to figure something out so you can stay in your house and continue to pay your mortgage.
Contrary to popular belief, lenders don’t want to foreclose! They want happy customers who pay their mortgages, 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 so you can catch-up and pay them off, or it might include a restructuring of the outstanding amounts that you owe.
Strategy #2. Bankruptcy
Filing for bankruptcy may seem like an extreme measure but it is one of the “tools” in your foreclosure avoidance toolbelt. 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 little extreme: it may require you 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. So this shouldn’t be your first line of defense!
Strategy #3. Short sale help for a foreclosure in Dallas/Fort Worth
A short sale is the third strategy — this is where you sell your home and put the proceeds of the sale toward the amount owing on your mortgage loan. A short sale is a preferred method for people facing foreclosure because it is proactive, fast, and very effective.
- It’s proactive, which means that you take matters into your own hands (that’s a major stress eliminator because so much of the stress of foreclosure comes from the process being completely out of your control).
- It’s fast — in some cases, you can sell your home in as little as a week! That’s also because it’s local: You can get help for foreclosure in Dallas/Fort Worth since organizations like Greater Buyers help people going through short sales.
- It’s very effective because a short sale can completely wipe out (or almost wipe out) the amount owing on your mortgage. If there is any amount left over that is not covered by the sale of the property, you’ll be responsible for it (although you can sometimes work out a deal with your lender).
With a short sale, you still end up with the reality of having to leave your home but there is a bright side: The impact to your credit is much less (compared to a bankruptcy or a foreclosure) so this is a smart long-term play to give yourself some options.