The possibility of foreclosure can be devastating to families. You own and love your home, but foreclosure seems impending due to unfortunate circumstances.
The stress can be close to unbearable for local TX families facing foreclosure. To make matters worse, the foreclosure process can be prolonged for months, even years.
Thankfully, there are options available to you here in TX, maybe even more than you think. These are some legal foreclosure avoidance strategies that help for foreclosure in Houston. Putting them into action can help resolve your foreclosure issue so you can move on.
In this post, you’ll discover 3 ways that you can avoid foreclosure (among others). The goal is to help you legally and ethically avoid foreclosure, reduce the amount of pain and frustration you’re facing, and minimize long-term financial commitments or burdens. Not every strategy will apply in any situation, but you may find at least one out of three ways that will work for you.
Strategy #1: Work out a deal with your lender
This is called a “foreclosure workout”. Here, you’ll sit down with your lender and inform them that you don’t think you can pay your current mortgage obligation but would like to figure something out in order to stay in the house and continue to make payments.
Contrary to what people think, lenders don’t want to foreclose! They are usually willing to work with homeowners to work out a deal in order to keep happy customers who pay their mortgages. This may include a temporary reprieve on your payments, or it may include a catch-up strategy where your outstanding mortgage payments are spread out so you can catch-up and pay them off. It may also include a restructuring of the outstanding amounts owed.
Strategy #2. Bankruptcy
This strategy may seem extreme, but it is an option. When filing for bankruptcy, you are indicating to your creditors that you are no capable of paying bills. This puts a stop to the foreclosure process because all creditors have to stop the collection process.
Filing for bankruptcy may entail selling off some of your assets in order to pay your creditors. In addition, a bankruptcy will remain on your credit score for many years, which can impact everything from getting a loan, car, or even getting a job. This should not be your first choice!
Strategy #3. Short sale help for a foreclosure in Houston
The short sale strategy is where you sell your home and use the proceeds to pay off the amount owed on your mortgage loan. Because a short sale is proactive, quick, and effective, it is the preferred method for folks facing foreclosure.
- It’s proactive, which means that you are taking matters into your own hands (this eliminates stress because so much it comes from everything being out of your control).
- It’s quick, and 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 Houston because companies like Heritage Home Buyers help people go through short sales.
- It’s effective because a short sale can completely wipe out (or almost wipe out) the amount owed 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 will still have to leave your home, but there is a bright side: The impact to your credit is greatly reduced (compared to bankruptcy or foreclosure), so this strategy is a smart long-term play to give yourself some options.
If you find that you’d love to sell your house to get out from under your TX foreclosure…
Give us a call today at (281) 738-3898 or click here to fill out the form and we’d like to make you a fair all-cash offer on your house.