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How to stop Foreclosure

How to Stop Foreclosure

When you’re looking to avoid foreclosure, in most cases, the best option is to sell it to an investor. If an investor is making you promises that are too good to be true, however, they probably are. Since time is of the essence, you may not be able to scour local investors and vet them for trustworthiness thoroughly.

As a prospective homebuyer in the U.S. who is interested in affordability, we may have considered buying a home from homeowners who can no longer make the mortgage payments and consequently faced with the early dangers of foreclosure. 

However, if your lender has filed a Notice of Default (NOD), you might think the loss of your property is inevitable, and it becomes a pain in the ass. Even at this stage, the following strategies can stop the foreclosure process: 

How to stop foreclosure fast!

  • Sell your home fast

Allowing you to avoid adding a foreclosure to your credit history, we’d be delighted to provide you with fair cash for your home. We buy houses from homeowners that need to sell houses facing foreclosure in the United States. You can either fill out our online form below or send a mailto:contact@nexoffer.com to find out how we can help you with selling a home facing foreclosure today!

You deserve the best of service in your time of need, and we would love for the opportunity to do that for you!

 

Foreclosure Workout

Until your lender lists home for auction, most lenders would instead work out a compromise that would allow you to get back on track with your mortgage than take your home during the foreclosure process. The following workout will be helpful.

  • Short sale

Presenting your lender with a reasonable short sale offer is indeed a time-conscious offering as it would go a long way, saving their time, effort, and trouble trying to sell the home or finding a qualified buyer in a soft market. Hence, if your lender lists your home, effort should be made aggressively to seek buyers for it and even after your lender initiates the foreclosure process. 

  • File for bankruptcy 

Bankruptcy stops foreclosure dead in its track. Once you filed a bankruptcy petition, federal law forbids any debt collectors, including your mortgage lender, from continuing collection activities. As a collection activity, the foreclosure process will effectively be freeze by federal law. Bankruptcy does not completely get you off the hook but gives you more time to sort things out. Hence, the law obliges your lender to work with you in good faith to formulate a reasonable plan so you can get on track.  

If you are stuck at one point with your mortgage, bankruptcy buys you more time to recover financially from a temporary disability; it doesn’t let you off the hook for your debts.

 

  • Deed in lieu 

Deed in lieu is just what it sounds. Here, the homeowner facing foreclosure signs the deed of the home back over to the bank voluntarily. At one point, lenders are often scared of taking a house back through an act in place of foreclosure. There is always the fear that homeowners can sue the lender, claiming they didn’t understand what was happening. So, the lender must pay any mortgage or HELOCs off before executing a deed of lieu, and the lender wants to be confident that the borrower’s financial distress is real. Allowing the foreclosure process to proceed is one way the lender can be sure the borrower is not faking poverty. Even when all these factors are present, many lenders will not agree to a deed in lieu, but it is worth trying!

  • Assumption/ Lease-Option

If you face foreclosure with your mortgage termed “due on sale” clause, you might still persuade your lender to modify your loan, erase this clause and allow another buyer to assume your loan. For security reasons, the lender might want to assess the new buyer’s qualifications to be fit for the loan, but it can be a win-win-win option for all. You might be able to negotiate a down payment from the buyer, which you can use to pay off your outstanding past due to mortgage balance.
      In a lease-option scenario, the buyer becomes your tenant, and you continue owning the property until the buyer has saved enough down payment money, improved their credit sufficiently, or sold their other home. In some situations, the buyer will make a one-time, lump option payment upfront, paying you to obtain the option to purchase your home. You can apply the option payment to bringing your mortgage current. Then, the buyer will make lease payments monthly, which you, the seller, then apply to your mortgage. To successfully use a lease-option to stop the foreclosure process, you must negotiate lease payments that cover most or all of your mortgage payment, property tax, and insurance obligations.

     At Nexoffer, we can make things easy for you, so you don’t have to deal with the hassle. The sooner you contact us, the sooner your foreclosure is put to rest, and the sooner you can get on with your life and be free from all of this stress.

When you’re looking to avoid foreclosure, in most cases, the best option is to sell it to an investor. If an investor is making you promises that are too good to be true, however, they probably are. Since time is of the essence, you may not be able to scour local investors and vet them for trustworthiness thoroughly.

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