Are you fighting foreclosure of your Michigan property? You’re not alone. Each year, thousands of homes in Michigan are filed for foreclosure. There are various reasons why one might find themselves in this dire situation, but one thing is certain: it isn’t the end of the world. In this article, we will discuss your best options when faced with the stress of foreclosure.
Best bets when foreclosure is on the table
Losing your home is an understandably frustrating event. That said, it’s vital to remain calm, composed, and informed throughout the process. Remember, no matter how tense the situation, there is always a way to get ahead. By remaining knowledgeable on the process of foreclosure, you can explore all options and make an informed decision. Here’s the common actions we suggest you look into when going through foreclosure:
1. Talk to a professional soon
There are counselors and experts that are widely available to you both locally and online. It’s crucial to understand that, before embarking on any foreclosure defense, you should consult someone with expertise. This doesn’t need to cost you anything. Foreclosure Avoidance Counselors are willing to offer you advice and services for free. In addition, update yourself on the various financial help programs at your disposal; many of these specialize specifically in foreclosure.
2. Restructure your financial plan
It’s never too late to reach out to your lender and begin a discussion on how to forestall foreclosure. If your financial situation is going through choppy waters, you need to inform your lender immediately. This way, they can negotiate a plan with you. By opening a channel of communication between you and your lender, you may be able to come up with a viable solution before things escalate. It’s not beyond your means to ask them to consider restructuring your payment plan.
3. Declare bankruptcy
Bankruptcy is a scary word, but it can actually be a helpful (and necessary) tool to get you back on your feet. Depending on your situation, you can claim a particular chapter of bankruptcy to defend yourself against foreclosure. The two main options would be Chapter 7 and Chapter 13 bankruptcy.
Find out here about Chapter 7 bankruptcy and if you qualify. By filing Chapter 7, you basically claim that your income is not enough to cover all payments. Your debts – not including mortgage – are then wiped clean. Be aware that while this may place an automatic stay on your property (i.e. putting a hold on your foreclosure) the lender can still go to court and ask that the foreclosure go forward despite the bankruptcy claim.
Chapter 13 is a little different. By filing Chapter 13, you claim that with more time, you can catch up to missed and current mortgage payments (as well as others). You are given a 3-5 year plan with your lender, during which you are required to make periodic payments that cover all bills.
4. Sell your property via short-sale or deed in lieu
There are a number of ways you can quickly sell your property before it goes to auction.
- Short-sale refers to the quick selling of your home pre-foreclosure. Before the process, you’re required to ask your lender for approval, and even then, the value of the property will usually drop significantly. Regardless, this is still the better option than foreclosure because your credit score won’t be as negatively impacted. In addition, you are more likely able to purchase a home immediately following a short-sale than a foreclosure.
- Deed in lieu of foreclosure refers to the voluntary transfer of a property’s title from you to the lender, thus releasing you from all mortgage obligation. Once again, you will need to receive approval from your lender to initiate this process.
5. Sell your property to a house-buying company
House-buying companies will purchase your property quickly in exchange for cash. There is no need to deal with the stress of realtors, repairs, or post-sale paperwork. A house-buying company will save you closing costs, time, and repairs all while offering you a fair price for your property. That way, you can forego the foreclosure and save time – as well as your credit score – by dealing with a house-buying company.
Reach out for more info!
All in all, there are a wealth of resources available to anyone facing foreclosure in Michigan. Foreclosure is undoubtedly a terrifying situation, but by exploring the right options and talking extensively with a counselor or expert, you’ll find yourself moving along fine.
For more information on house-buying companies, please feel free to explore our website. For specific information on our services, please do not hesitate to contact us at Buymi.