We Buy Houses in Foreclosure & Pre-foreclosure – Get YOUR Offer!
Does the idea of finally walking away from a property without the storm cloud of foreclosure hanging over your head? Contact a real professional at Annmarie Buys Houses 365 to find out more and get a fair cash offer for your property today.
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If you are unable to make your mortgage payments, the bank or lender has the right to foreclose, or take the house back. It’s like anything else that you buy and agree to pay in installments over time. Because a mortgage is a binding contract between you and your lender, if you fail to meet the loan terms, the lender will sell the property at auction to settle any outstanding debts owed to them. The damage to your credit score can be devastating as a foreclosure on your credit record will prevent you from getting a mortgage to purchase another house, renting an apartment or even to buy a car.
According to a nationwide study conducted by the U.S. Census Bureau Household Pulse Survey (July 27 to Aug. 8, 2022), nearly 1 million individuals were concerned about the possibility of losing their homes. Foreclosure can stem from various factors, such as loss of a job, increasing debt, death, divorce or an unexpected event that comes with financial expenses and debt.
Annmarie Buys Houses 365 is a local company that has built their business by buying distressed houses and properties in the area for cash. They promise competitive cash offers without the hassle of dealing with real estate commissions, financing, requiring repairs and can close as quickly as 30 days or another timeframe that works best for the homeowner.
What is Foreclosure?
If someone in the household that contributes to the payment of the mortgage or other bills, this has a big impact on the ability to pay these bills on time as they used to. With the same bills to pay but lacking the funds to cover expenses, such as the mortgage, what do you do next? Even if you secure another job, the accumulated debt may be overwhelming to clear promptly. In such situations, the bank initiates the foreclosure process.
How Long Do You Have To Get Out of Your House After Foreclosure?
The steps for foreclosure in most states are missed payments, public notice, foreclosure, auction, and eviction, but the amount of time for each step varies based on state. In general, you don’t have to leave your house until the foreclosure is completed, which could take several months, or even a whole year. Once your home is sold, however, you must leave. State laws may vary, but you might be able to stay in your home for a period of time after the date of sale. You may have a few days to a couple of weeks.
Can I Keep Profits From a Foreclosure Sale?
The lender does not have the right to receive any excess proceeds from the sale of a home over the balance owed on the loan plus any fees for the foreclosure. The borrower gets any extra money that is earned over the loan balance and foreclosure fees.
What Happens If My Home Sells for Less Than What I Owe?
If your property sells for less than the outstanding mortgage balance, the lender may pursue a deficiency judgment against you. This legal action requires you to repay the difference between the sale price and the remaining loan amount. For instance, if you owe $300,000.00 on your mortgage but the property sells for $275,000.00, the shortfall is $25,000. The lender can then seek to recover this remaining balance from you. some states have laws that restrict the use of deficiency judgements or those that prohibit them after foreclosure.
What Property Taxes Do I Owe When My House Is In Foreclosure?
Property taxes are an obligation for all homeowners for long as you own a home. In certain situations, the lender may step in to cover the taxes in order to facilitate the sale of the property. Failure to pay property taxes can result in the government seizing the property, making it challenging or even impossible for lenders to recoup their funds. It’s important to note that the tax liability is tied to the property itself, not the individual. Therefore, once the house changes ownership, the new owner assumes responsibility for the property taxes.
What Is a Non-Judicial Foreclosure?
A non-judicial foreclosure is the fastest and cheapest way for a lender to foreclose on your property. It does not require taking you, the homeowner, to court and can be completed according to state statutes. In the case of non-judicial foreclosure, your lender repossesses your home to sell it and recover whatever debt is owed using what’s called a “power-of-sale” clause in the deed of trust. Not every state allows for this option but, if yours does, the lender will generally choose it to avoid any court costs.
What Is Judicial Foreclosure?
In states that require judicial foreclosure, your lender must file a lawsuit asking the court to issue an order to allow for the sale of the home. The lender must provide you with this letter. Whether you agree or not, you must respond to the letter or the lender will automatically win the case and be allowed to put your home up for a foreclosure sale. When the house is sold, you are still required to pay the difference between what you still owe on the mortgage and the amount the house sold for.
Auctions are not like regular home sales and generally the house is not sold for market value. This means that even if your house is in great shape and worth a lot more than what is left on your mortgage, you may still find yourself owing tens of thousands (if not hundreds of thousands) of dollars for a house you no longer own! This is called a deficiency judgment. It’s an expensive and long process for lenders to take to try and recoup their debt, which is why most prefer a non-judicial foreclosure.
What Are Your Options to Sell Your House Before A Foreclosure?
There are a few ways you can sell your house, depending on your time frame and situation
1. Hire A Real Estate Agent
When facing a challenging situation like foreclosure, there are advantages and disadvantages to working with a real estate agent. An experienced agent can list your property on the MLS, prepare it for showings, and host open houses, but their commission is a significant portion of the sale proceeds. If you’re struggling with debt and aiming to repay your lender in full, parting with 3% to 6% of the final sale price as commission is a considerable amount of money to have to pay to the agent.
You also shouldn’t assume that your house will actually sell. There is no guarantee that the realtor listing your home will find a buyer, and wait 60+ days for a traditional close. The majority of buyers will also require an inspection and they may ask for repairs to be made before they close! For homeowners who are facing auction and eviction, the clock is ticking and waiting for a buyer to go through this process takes way to long. If your house doesn’t end up selling, you have just wasted all of that time.
2. Short Sale
If you owe more on your property than its current market value, your real estate agent may suggest a short sale. A short sale is needed when the outstanding mortgage balance exceeds the home’s worth. For instance, if you owe $200,000 on your property but the market value is only $150,000, a short sale becomes necessary. While a short sale may appear to be a viable solution, it is important to note that the process is neither quick nor simple.
You will need to get your lender’s approval. To qualify for a short sale, you must prove financial hardship using documentation such as W-2s, medical bills, etc. For a situation such as loss of income, the lender will require that you prove that the loss of income is long-term and unlikely to turn around in your favor. If the lender approves the short sale, you will need to find a real estate agent and attorney that specialize in short sales, and they will still charge you the same amount as they would if you were selling your house with a traditional home sale.
If your foreclosure hasn’t dragged on for too long and you’ve maintained contact with your lender, it’s likely that they will approve the short sale. This allows them to avoid the time and expense of trying to foreclose on your property, while still recouping some of the loss from the missed mortgage payments. But for the regular American homeowner, the short sale will follow them for the next 5 to 7 years.
You may have sold the house and been able to pay off some of your debt, but the short sale can damage your credit the same as if you had declared bankruptcy. The credit unions include the delinquency on your mortgage(s) to your lenders and the short sale on their records, making it nearly impossible for previous homeowners to get a credit card, buy a car, or move into a new house or property for the same amount of time as a bankruptcy.
3. Sell Your House AS-IS to A Cash Buyer
If you’re under a strict time restraint to sell your house before a foreclosure progresses to auction and eviction, you do have options! You can try to sell your property with a real estate agent, work with your lender to complete a short sale, or – best of all – turn to a trusted and reliable cash investor to help you with your situation.
Some of the benefits of selling to a direct cash investor include:
- A quick and pain-free closing process.
- Avoid paying any commissions or fees.
- You won’t have to worry about marketing your house and waiting for a buyer.
- No need to clean-up or complete any repairs!
When you sell your home as-is to a direct cash buyer, you not only can avoid losing your home to an auction, but you also may be able to sell the property for enough money to get out of financial debt. Moving on with your life without the burden of a monthly mortgage payment and debt hanging over your head is one of the best gifts you can give yourself!
Are There Options To Stop a Foreclosure Once it Starts?
Pay Off Your Loan & Fees
If you’re feeling overwhelmed by mounting debt and stagnant finances, it’s time to take action. Consider liquidating assets, seeking financial assistance from friends or family, or consulting with a professional to reorganize your budget. By implementing these strategies individually or in combination, you can effectively tackle your debt and prevent foreclosure, paving the way for a future free from financial stress.
Declare Bankruptcy
While bankruptcy can halt the foreclosure of your home, it is crucial to consider the significant drawbacks it entails. The bankruptcy procedure is intricate, necessitating the expertise of a specialized bankruptcy attorney. Upon approval by the court, you will be enrolled in a government-endorsed credit counseling program, and the bankruptcy will be noted on your credit report for a duration of 7 years. Furthermore, filing for bankruptcy has far-reaching consequences, affecting various aspects of your life such as your ability to secure a car loan, apply for credit cards or open bank accounts, and may even render you ineligible for future rental agreements.
The Homeowner Affordability and Stability Plan (HASP)
If your debt exceeds your income, you may qualify for the Homeowner Affordability & Stability Plan (HASP). HASP serves as a loan modification initiative aimed at individuals facing the threat of foreclosure due to insufficient earnings. This federal program is tailored to assist homeowners in the United States in adjusting their monthly payments to align with their financial constraints. To check your eligibility for the program, you can submit your application here.
Sell Your House Fast to a Cash Buyer
If you find yourself in a situation where selling your house quickly is what you need, the prospect of a prolonged traditional closing period may not be viable, a cash buyer-investor is worth considering. By choosing to work with a cash investor prior to an auction date or at any time before or after missing payments you can cancel the foreclosure and keep your credit intact, allowing you to move forward with a clean slate and remove the pressure from your lender by paying the outstanding debt. By working with an investor you can expect a seamless transaction where your property is purchased in its current condition for cash.
Working with a cash buyer can help you cut out the long hassle of foreclosures and auctions, getting you a quick fix in just days without hurting your credit. Even though you might not get the full property value, there are huge benefits of a fast sale that doesn’t include fees, inspections, and commissions can make up for it.
We Buy Houses in Foreclosure & Pre-foreclosure – Get YOUR Offer!
Does the idea of finally walking away from a property without the storm cloud of foreclosure hanging over your head? Contact a real professional at Annmarie Buys Houses 365 to find out more and get a fair cash offer for your property today.