Going into foreclosure can be a scary process. Life happens, and you can find yourself in a sticky situation where you have fallen behind in your payments, and your house is about to get auctioned off. If this sounds like you, then you need to stop the foreclosure auction immediately!
The longer you leave the foreclosure process, the harder it becomes to stop it while affecting your credit score. If your credit score does get affected, you’re looking at seven years for it to get taken off.
But, there is hope to save your home. Whether you file for bankruptcy or apply for a loan modification, there are options for you.
Let’s explore a few options to stop the foreclosure of your home immediately.
#1: Pay Off the Debt Owed
The first option to stop foreclosure would be to pay the debt you owe on the mortgage loan. This is the simplest solution: you don’t owe too much and can afford to pay the outstanding loan.
It’s a requirement by Massachusetts law that a lender needs to give the homeowner one final opportunity to get their mortgage loan debt cured before they can begin the process of foreclosure.
Be aware, though, as paying off your debt will mean the terms of your loan will remain in place. If your mortgage loan was unaffordable before paying off your debt, then it might be a better option to apply for a loan modification.
#2: Loan Modification
Besides paying off your debt, a loan modification should be your first step in stopping a foreclosure auction. The only downside is that the lender needs to approve your request. Just completing the application will stall the foreclosure process by a few weeks.
What is loan modification?
A loan modification is when you approach the lender to explain why you could not keep up with payments, for example, high-interest rates. Your job would be to convince the lender to agree to lower the interest rates, so you get to keep your house. This is also called loss mitigation. Simply put, you and the lender come to an agreement to prevent foreclosure.
#3: File for Bankruptcy
Another guaranteed method to stop foreclosure immediately is to file for bankruptcy. Filing for bankruptcy will help prevent the lender from collecting their debt and stalling the foreclosure process, and it buys you time to figure out your next move.
However, bankruptcy might not be the best option, as it affects your credit score negatively and is only a temporary solution. If you’re unsure if this is the route to take, consider speaking to an attorney who will give you valuable advice on the process.
Forbearance is when the lender agrees to not go ahead with the foreclosure process as they have agreed to a payment plan with a homeowner. An agreement can include either reducing or suspending your payments until you can get yourself financially stable again.
Even though you’ll get granted additional time to save your home, forbearance comes with extra costs, which can add up to your already financial stress.
Forbearance is similar to a loan modification, except banks have gotten away with continuing the foreclosure process even though the loan modification had already begun. This is called dual tracking and is getting made illegal through the courts in the United States.
#5: Civil Lawsuit
If you feel you can convince a judge that the foreclosure is getting done wrongfully, you should consider filing an injunction relief against the lender. An injunction requires or prevents someone from doing something.
You’ll need to prove to the court against the foreclosure’s legitimacy, as the court won’t have the injunction automatically granted against the foreclosure. It gets strongly suggested that you get a foreclosure defense attorney’s help if you choose to fine an injunction against the lender, as the lawsuit can get tricky.
#6: Speak to an Attorney
Foreclosure laws can get complicated, and often you will need to know your rights. A foreclosure attorney can help you should the lender not be doing their due diligence in the foreclosure process.
As stated before, speaking to an attorney might be a good idea for your situation. If you can’t afford an attorney, you can consult with the US Department of Housing and Urban Development (HUD), who will provide you with various loss mitigations and counseling.
#7: Sell Your Home Fast to a Cash Investor
One of the fastest ways to stop a foreclosure auction immediately is to sell your home to a cash investor. Selling your home can alleviate stress and will provide you with immediate cash.
Selling your home with the traditional method of using a real estate agent can take anything between 3-6 months, depending on whether or not it’s a buyer or seller’s market, the time of year, and if your home requires repairs. Selling to a cash buyer can be as quick as a week to finalize!
We Will Buy Your House for Cash!
All hope has not gotten lost if a lender has a foreclosure auction scheduled. If you want to avoid a foreclosure auction and need to move quickly, contact us!
We will buy your home for cash, as-is, through our “Fast Cash Offer” option. This means that you don’t need to do any repairs or maintenance to your home, so you get to save money. You will also protect your credit score by selling your home for cash while providing you with an opportunity to buy a new home later.
To discuss your situation further or get a free, no-obligation cash offer, call us today at 781-309-7085!