What happens when your house is in foreclosure?
If you’re asking this question, you’re probably a homeowner who’s about to lose his/her property. Or maybe, a friend or your loved one is getting into or almost getting into foreclosure trouble.
But wait, how should you go about this? That’s what you’re about to discover. First off, for starters, when your house is in foreclosure, the property reverts to the lender who assumes ownership. In a worst-case scenario, the result is an eviction.
Usually, this happens when you’re unable to pay the mortgage for a significantly long period. At this time, the lender has no option but to use the house as collateral to settle the debt. Thus, the lender sells the house to cover up for their forfeited money.
What are the different types of foreclosure?
When your house is in foreclosure, it can either be a judicial foreclosure or non-judicial foreclosure. Below is the difference between the two.
Judicial foreclosure: The lender can only repossess the house after filing a petition with the courts. This process is time-consuming and more costly. If you don’t owe the lender a lot of money, they’d probably not go this route.
Non-judicial foreclosure: This doesn’t involve a court process, and the lender can sell the house to a willing buyer once the lender repossesses the home. This process is less costly and the most preferred by lenders.
After working tirelessly to buy a home, the last thing you want is a foreclosure. Just imagine how devastating and frustrating it can be. And it can get worse than that. If you wait for your house to get to foreclosure, you risk;
Being homeless: After the lender repossesses the house, what’s left is an eviction in three days. If you don’t have a way out, you may end up in the streets.
A drop in your credit score: Being in foreclosure means you’re defaulting on loan payments because you can’t pay for your mortgage. When this happens, your credit score goes down, and no financial institution will be willing to take a risk on you.
Depression and other health complications: Think about the stress you’ll go through after an eviction. In a worst-case scenario, you end up in the streets and open cold. Eventually, you’ll get depressed, and your overall health will deteriorate.
As you can see, you have no business waiting for your house to go into foreclosure.
So, what’s the way out of this?
There are several options you can consider, such as selling the house through a Realtor Agency. The only thing is that you should be ready for a longer turnaround time, extra expenditure in fees, and commissions. And if the realtor finds a buyer but seemingly he/she is unable to secure a loan, you’ll still lose the house. What a disappointment!!!
The other alternative would be selling through a cash buyer. In every way, this is the best way because of a fast turnaround time, no high fees in commission, and no need to renovate before selling. Isn’t that just amazing?
If you decide to engage a cash buyer, then Max Home Solutions would be the best shot. This is the only home buying company that helps you put more cash in your pockets by offering a reliable way to sell your house without the sales process’s burden and offers the highest rates and fastest transaction time.
