Local California homeowners who are facing a financial challenge
Foreclosure is when the mortgage loan doesn’t get paid back and the bank begins the process to take ownership of the property to recoup its losses.
If you unfortunately find yourself entering the foreclosure process, you might wonder if there is anything you can do about it.
In this blog post, you’ll read about a few foreclosure prevention measures in Victorville, Apple Valley, Hesperia that you can take to keep your home from foreclosure.
Foreclosure prevention measures in Victorville, Apple Valley, Hesperia California
These foreclosure prevention measures might not all work in your situation but we’re educating you about them so you can make the decision for yourself:
1. Pay off your mortgage / sell your property. The quickest and easiest way to end the foreclosure process is to pay off your mortgage. But…who can really that? We should all understand that after all, this is all the bank wanted in the first place so they would be happy to let you stay in your home and they get their money back. Admittedly, this is not always possible, which is perhaps the reason that you’re in foreclosure in the first place.
2. Work out a deal with your bank. In many cases homeowners can work out a deal with their bank where they sit down with a mortgage or foreclosure specialist and talk to them about changing the structure of the mortgage. It is possible in some situations that the payments can get spread out so they are lower each month, for example. Just make sure that the deal works for you — you don’t want to just repeat the process.
3. Do a short sale. A short sale is when you sell the property and use the proceeds of the sale to pay down or pay off your outstanding amount with the bank. This keeps a foreclosure from impacting your credit score and it gets the bank off your back!
4. Give your deed in lieu. Another option would be a deed-in-lieu-of-foreclosure, which basically means that the homeowner will hand over the deed to their house to the bank and they agree not to put the homeowner through foreclosure. This will often only work if the owners house is worth approximately the amount owing on the mortgage. If not, the bank may pursue the difference.
5. File for bankruptcy. In some ways, a bankruptcy is far more dramatic than a foreclosure because it impacts your whole life. However, once the owner files for bankruptcy, the foreclosure process has to stop so it’s still a foreclosure prevention measure.
If you want to put everything behind you and move on with your life then consider selling your home and paying off your mortgage with that money.
Considering selling your California house?
We buy houses in CA for cash and would love to see if we can help you during your short sale. Contact us by filling out the form on this page and we’ll see if we can work with you.