Families can be devastated by the possibility of foreclosure, even though they love their homes and depend on them. Foreclosure can be a prolonged and stressful process, especially for California families. However, there are several legal strategies to avoid foreclosure in Sacramento that you may not be aware of. This blog post highlights three of these strategies that you can implement to avoid foreclosure and move forward with your life. The purpose of these strategies is to help you avoid foreclosure ethically and legally, reduce your pain and frustration, and minimize your long-term financial commitment or burden. While not all of these strategies will be applicable to every situation, at least one of the three ways will likely work for you.
Strategy #1: Work out a deal with your lender
The “foreclosure workout” is the first strategy to avoid foreclosure. You will have a discussion with your lender and explain that you cannot fulfill your current mortgage obligation, but you wish to find a solution to remain in your home and continue making payments. It is important to note that contrary to popular belief, lenders do not want to foreclose. Instead, they prefer happy customers who pay their mortgages. Hence, lenders are often willing to collaborate with homeowners to find a solution. The solution may include a temporary deferment on your mortgage payments, spreading out your outstanding mortgage payments to catch up and pay off, or restructuring the outstanding amounts owed.
Strategy #2. Bankruptcy
While it may seem like an extreme measure, filing for bankruptcy is one of the tools available to you to avoid foreclosure. By filing for bankruptcy, you inform your creditors that you are unable to pay your bills. This action stops the foreclosure process since all creditors must cease the collection process. However, it’s important to note that filing for bankruptcy may require you to sell some of your assets to repay your creditors, which can be disadvantageous. Furthermore, a bankruptcy can negatively impact your credit score for many years, affecting your ability to get loans, a car, or even a job. As a result, filing for bankruptcy should not be your first line of defense.
Strategy #3. Short sale help for a foreclosure in Sacramento
The third and preferred strategy for foreclosure avoidance is a short sale. A short sale involves selling your home and using the proceeds of the sale to pay off the mortgage loan. This strategy is proactive, fast, and highly effective. Being proactive means that you take control of the process, which eliminates a significant amount of stress that comes with foreclosure. Additionally, it’s fast – you can sell your home in as little as a week. The process is also local, and there are organizations in California like North Valley Home Buyers that can help you through the short sale process. A short sale can completely wipe out the amount owed on your mortgage. If there is any amount left over, you may be responsible for it, but you can often work out a deal with your lender.
Although you’ll have to leave your home in a short sale, the bright side is that the impact on your credit score is much less than with bankruptcy or foreclosure. A short sale is a smart long-term play that gives you the chance to explore other options in the future. Ultimately, it’s essential to explore all the available foreclosure avoidance strategies to find the one that works best for you and your unique situation.
Strategy #4. Selling to a local Home Buying Company
While traditional methods of avoiding foreclosure all work. They are also time intensive and very stressful for Sacramento homeowners. This is why many homeowners have turned to cash buyers, like North Valley Home Buyers, to quickly and easily sell their homes.
Here are some of the benefits of selling your home to a cash buyer:
- Quick Sale: One of the most significant advantages of selling to a cash buyer is the speed of the process. In most cases, cash buyers can close on a home in as little as seven days. This is because cash buyers don’t rely on financing and don’t need to wait for a bank’s approval. This quick sale can be especially beneficial for homeowners who need to sell their homes quickly for personal reasons, such as a job relocation, financial struggles, or a divorce.
- No Repairs Needed: Selling a home through traditional methods can require extensive repairs and upgrades to ensure the home is in top condition. However, when selling to a cash buyer, you don’t need to worry about the condition of the home. Cash buyers like North Valley Home Buyers will purchase homes in any condition, from new and updated to old and dilapidated. This means you can sell your home as-is, without investing any more money into repairs or upgrades.
- No Hidden Fees or Commissions: Selling a home through a real estate agent can come with many hidden fees and commissions. These costs can quickly add up, leaving homeowners with less money than they initially anticipated. When selling to a cash buyer, there are no hidden fees or commissions. Cash buyers will typically offer a fair and straightforward price for your home, without any surprises or hidden costs.
- Guaranteed Sale: When selling a home through traditional methods, there’s always a chance the sale will fall through. This can happen for a variety of reasons, from a buyer being unable to secure financing to issues found during the home inspection. When selling to a cash buyer, the sale is guaranteed. Cash buyers have the funds available to purchase your home, and there’s no need to worry about the sale falling through.
- Stress-Free Process: Selling a home can be an incredibly stressful experience, with open houses, negotiations, and contracts to navigate. However, selling to a cash buyer can be a stress-free process. Cash buyers like North Valley Home Buyers will handle all the paperwork and details, making the process as easy and straightforward as possible.
Overall, selling to a cash buyer like North Valley Home Buyers can be a quick, stress-free, and lucrative way to sell your home. If you’re looking to sell your home quickly and without any complications, consider reaching out to a cash buyer today
If you find that you’d love to sell your house to get out from under your Sacramento foreclosure…
Give us a call today at (916) 500-7355 or click here to fill out the form and we’d like to make you a fair all-cash offer on your house
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