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Your House is in Danger of Foreclosure. What Can You Do?

Buy MI House > Blog > Avoiding Foreclosure > Your House is in Danger of Foreclosure. What Can You Do?

Foreclosure

Your house is nearing foreclosure. Owning a home can be difficult. It comes with a lot of financial responsibility. Inevitably, life happens, and when it does, it can be challenging to meet those financial responsibilities. Failing to do so can lead to foreclosure, and that’s a painful reality for many homeowners.

What Leads to Foreclosure?

The apparent reasoning for foreclosures is that people run into financial problems. However, a variety of circumstances can lead to those financial problems, and we’ll look at some of those reasons in this section.

Changes in Health Can Lead to Foreclosure

Often, people who foreclose on their homes do so because of health issues. If you have an unexpected illness or injury that prevents you from being able to work, that can impede your ability to satisfy your financial responsibilities. Further, many people incur medical expenses that wipe out their savings and prevent them from being able to fulfill their financial obligations.

A Change in Relationships Can Lead to Foreclosed Homes

Sometimes, a couple may go through a divorce which could lead to a dispute over who’s going to assume responsibility for the mortgage payments on a house. If this dispute goes unresolved, that can lead to the house going into foreclosure. Also, people sometimes have roommates who decide to move out which can result in the same situation.

Over Extended Finances Can Lead to Foreclosure

foreclosed

Often, people get caught up with buying the house of their dreams, but they don’t consider the cost of ownership. Renovations, maintenance, and property taxes are all expenses that come with home ownership. These costs can add up quickly, and if you aren’t prepared, this can lead to a default on payments, and ultimately, foreclosure.

Options for Stopping Forclosure

When you’re facing foreclosure for any of the reasons mentioned above, it can feel like the end of the world. However, you have options that you can utilize to try and solve the problem.

For instance, your lender is also not happy about your foreclosure. Foreclosure procedures are a hassle for them, and they’d prefer to find a solution. They may even offer to help you out.

In some cases, the lender may offer a compromise. Some lenders will provide you with a grace period to help you out which may be ideal if your financial troubles are temporary.

Another option to consider is a short sale. From a financial aspect, it may be beneficial for you to sell your house yourself. A lot of people choose to do this because you’ll get a better price selling it yourself than you would at an auction. Many times the lender will appreciate this route because it saves them time and relieves them of the hassle of a foreclosure procedure.

Yet another option is filing for bankruptcy. Again, it’s worth noting that bankruptcy is only a short-term fix. If your financial situation is temporary, then this might be a fine option. The bank trustee will work out a payment schedule which will allow you to get caught up on your mortgage.

Selling Your House to a Cash Buyer

Cash buyer

The quickest and easiest way to get the house off of your hands is to find an investor who buys houses for cash. Selling your home to a cash buyer won’t guarantee you the most revenue. However, you can rid yourself of your mortgage, and avoid foreclosure. Below, I’ll list some of the benefits of selling you house to a cash buyer.

  • You won’t have to pay realtor fees associated with a quick sale.
  • You’ll avoid having to negotiate with the mortgage lender.
  • You can avoid bankruptcy.
  • Best of all, you can avoid foreclosure.

If you don’t see your financial situation turning around in the near future, finding a cash buyer is your best option. The process is quick and easy, and it’ll help you avoid foreclosure.

Do You Want to Stop Your Foreclosure?

We understand that facing foreclosure is both stressful and frightening. That’s why we’re here to answer any questions you might have about the foreclosure process or how to get out of it. At BuyMi.House, we’re here to help you. Whether you’re ready to sell or you just have a question, Give us a call at (586) 200-1710. We’re here to help make the process as easy as possible for you.

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