We all face challenging circumstances in life that can turn our world upside down. One of those is financial difficulty that puts us in a position we never thought we’d face—foreclosure. Dealing with a looming foreclosure is a stressful and emotionally challenging time. Thankfully, there are ways to avoid foreclosure, protecting your credit from further harm. But how exactly is it possible to avoid foreclosure? One proactive step is to sell your house before proceedings begin. Here are a few things to consider if you want to know how to avoid foreclosure for your Detroit home:
Early Intervention
Most people experience some form of financial distress throughout their lives. Recognizing when things are getting ready to head south is crucial, as doing so will help you take proactive steps. Selling your house before the bank forecloses may help you avoid foreclosure proceedings. Cash home buyers make the process fast and easy with a cash offer for your Detroit home, so you can move quickly.
Communication Is Key
It can be tempting to avoid having any conversations with your mortgage lender. After all, financial distress isn’t a happy topic. However, avoiding regular communication will only make matters worse. Reputable lenders want to help you. So, if you anticipate problems with future mortgage payments, let them know. Some lenders have steps in place to help homeowners in Detroit learn how to avoid foreclosure. You may be eligible for solutions like forbearance, loan modifications, or repayment plans. Even if those solutions are not right for you, you’ll never know unless you ask!
Explore the Option of a Short Sale
While a short sale may not sound like the ideal solution, it’s a viable option for homeowners facing foreclosure. Essentially, a short sale means selling your home for less than the outstanding mortgage balance. Taking this step could potentially hurt your credit score, but it will do less harm than a foreclosure. If you want to consider this route, you might want to seek out an experienced local real estate agent. Those specializing in these situations can help guide you through the process and explain what you can expect with a short sale.
Sell With Equity
Before diving into this option, it is helpful to understand what equity is. Equity is the difference between how much you owe on your mortgage and the market value of your house. As you begin paying off your mortgage, you build equity in your home. Acquired equity is beneficial when purchasing a new home. However, it is also an option for avoiding foreclosure for your Detroit home.
If you have built up enough equity, you can sell your home at market value and use those proceeds to pay off the remaining mortgage balance. Should you have a high enough amount of equity, any remaining amount would be yours. But this solution is only applicable if you have enough equity in your home.
Here are ten things to look for when buying multi-family properties:
In cases where you don’t have enough equity and a short sale doesn’t entice you, consider getting a cash offer for your Detroit home. Reputable cash home buyers have experience working with homeowners facing the threat of foreclosure. They understand how to navigate the different stages and are ready to help you through this challenging time.
Selling your house in Detroit for cash will get you the fastest resolution possible. It will also help you avoid the real estate fees and closing costs of either a short sale or selling with equity. Additionally, the right cash home buyer will purchase your house as is. You won’t have to worry about making costly repairs when you’re already struggling financially.
Would you like to learn how to avoid foreclosure in Detroit by partnering with a leading cash home buyer? Contact Wise Property Buyers now!