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It’s important to know that you have options when facing foreclosure. None of these options is a 100% sure way that will keep you from losing your house. But they can help you save some of the money and credit rating that you lose with a home loan foreclosure. See how these options can help you avoid a forced bank sale of your house or condo.
You have three alternatives available to avoid foreclosure:
Any of these options is preferable to a mortgage company foreclosure auction. Even if your property has been issued a date for the auction, you can still stop the foreclosure sale. But you must take action quickly.
To stop a home foreclosure process once it has started is not impossible. You can stop a foreclosure sale date immediately by filing for a Chapter 13 bankruptcy. Such a filing will give you a short period during which you can try to work out a repayment plan for your property, and meanwhile find someone interested in buying it.
A commonly used method to stop a foreclosure is for the homeowner to sell their property before a foreclosure auction. The homeowner finds a buyer for their house and takes the buyer’s offer to the bank for approval.
When the lender accepts an offer which is less than the mortgage balance, the transaction is called a short sale.
Another way to get out of pre-foreclosure or foreclosure proceedings is for the borrower to sign over the deed to the property to the lender. This deed in lieu of foreclosure settles the borrower’s obligation to the lender. If, however, a second mortgage exists, the lender might not accept the deed in lieu because of any additional liability.
Austin Cash House Buyer has been serving the Austin, Texas real estate market for many years. We buy short sales all over the area. So if you need to short sell your home, give us a call. Let us surprise you with our helpful and speedy way of doing business.
We Are the Quickest Homebuyers
We are truly quick sale home buyers. Other investors can seem like they take an eternity to complete a deal. But we can complete most sales within one month.
In general, short sales can take longer: from two months to up to a year. But we typically complete them in just two to three months.
We Pay with Our Own Cash
Because we are cash investors, we don’t have to go to a bank for loan approval. We have the cash on hand to buy your home. All you will be waiting for is your bank’s approval of our offer.
We Don’t Charge You
Because a short sale to us is without any realtor’s commission, you save that expense. And when the bank accepts our cash offer, you don’t have any closing costs or hidden fees to pay.
You Don’t Need to Make Repairs
We buy short sales AS IS. The property’s condition after the bank accepts our offer is no longer your responsibility. You’re not responsible for any problems with the house. And you’re not responsible for any problems with the title, either.
We Make It Easy for You
After your lender approves our offer, we take on all the paperwork. You may have a few documents to sign and date. But otherwise, you have no hassle with additional paperwork.
After you find the notice of intent to foreclose on your door, take action immediately. You will be served with foreclosure papers soon. But as long as you contact us before the auction date, we will help you with an offer that you can take to the bank. And banks prefer a good short sale offer to a bankruptcy auction.
You will be served with an eviction notice for a court hearing. The judge will issue a ruling for you to vacate the house or appeal the ruling within five days. If you don’t cooperate, you will have 24 hours to move out (along with your belongings), or face physical removal of you and your possessions.
In Texas, a house can stay in pre-foreclosure until after you’re behind on the mortgage for over 120 days. The lender will then issue a foreclosure notice which gives you 20 days to repay the missed mortgage payments. If left unpaid, a Notice of Sale will be sent to you and the county at least 21 days before the auction.
A short sale saves the lender the expense of the foreclosure auction and the eviction process. For this reason, lenders frequently offer short sale assistance to help borrowers relocate. A short sale doesn’t have as much affect on your credit score as does a foreclosure auction. Except for putting effort into finding a buyer, a short sale doesn’t pose any considerable difficulties.
It is recommended to avoid foreclosure whenever a short sale is possible. A short sale will negatively affect your credit score, but not by nearly as much as a foreclosure. A short sale will ding your credit score, but sometimes only by as few as 50 points. A foreclosure, however, can hurt your score by up to 400 points.
In many instances, you can apply for a new mortgage right away. And you won’t necessarily have to list a short sale on future loan applications.
If your house is in default, and the auction is imminent, we can still give you an offer to take to the bank. But don’t wait until the last minute to take action. Contact us, and we will buy the house for cash and take care of negotiations and paperwork.