Missed a few mortgage payments?
Foreclosure can be stressful, bringing uncertainty with it.
During foreclosure, struggling homeowners are pushed into a corner by large debt and financial institutions.
You may be told that there is no way out of the hell hole, but is this the whole truth?
Do you have to leave your home?
No! You have options when it comes to mortgage foreclosure.
Understanding your options can help you manage your credit score and limit the stress of legal actions.
THE FORECLOSURE PROCEDURE
Foreclosure is when you cannot pay off the debt that you legally owe to a lending organization for several reasons. In such a scenario, the lender has the legal right to sell your house to recover the debt you owe.
But what happens when the property goes into foreclosure? Laws vary by state but have generally common steps.
⦁ The lender will send a payment default notice to the homeowner.
⦁ The homeowner is given some time to bring the account current, including charges like attorney charges, penalties etc.
⦁ If the homeowner fails to pay by the date, a notice of foreclosure sale is sent.
IMPACT OF FORECLOSURE
The foreclosure process can be stressful, time consuming and have severe, long-lasting effects such as:
⦁ Negative affect on credit score and history, which may impede future home purchase, credit approvals and certain employment opportunities.
⦁ Stress and mental health burden.
⦁ Lingering responsibility for post-foreclosure debts, e.g., deficient balance.
⦁ Limited or no low-cost lending opportunities.
⦁ Bad financial condition, economic hardship and housing instability.
Statistical Tale
The foreclosure rate is at an all-time high due to the ongoing pandemic. Nationwide and globally, people are struggling to meet their daily needs.
According to a recent survey, an Eviction Tsunami is coming. About 38,000 residents of Fairfield County, Connecticut, will likely lose their homes in the upcoming months.
The number of failing mortgages in Bridgeport is 5.1%, which is way higher than the national value of 1.1%. The homeowner percentage who are lagging in their debt payment stands as high as 26.9%.
Connecticut’s foreclosure rate is the 13th highest in U.S. A recent report by Berkshire Hathaway Homeservices indicated single-family home sales grew by 15.48%.
DON’T PANIC – THERE ARE WAYS OUT!
You can avoid foreclosure:
⦁ Ask your lender for a loan modification
to increase your length of time for debt repayment.
⦁ Consider a short sale
to a third party for less than you owe. The difference is waived in some states, while you might have to pay the rest in some states.
⦁ Seek lender permission to catch up missed payments over several months.
⦁ File for bankruptcy as a last resort. Bankruptcy prevents lenders from continuing any repayment collection but will negatively impact your credit history for a significant length of time.
⦁ Sign a deed in lieu, which
allows you to transfer the house in the lender’s name in case of foreclosure. In return, the lender waives the mortgage and cancels the foreclosure action.
SEEK OUR HELP
Phoenix Young Properties aims to help people during tough times by providing a sale-for-cash facility.
Homeowners facing foreclosure can sell their house as-is for the best cash offer and possibly avoid foreclosure.
