What Happens During Foreclosure and How To Avoid It

What Happens During Foreclosure and How To Avoid It

We know the stress that going through foreclosure causes for individuals, families,and even the pets. It’s one of the toughest things to experience when you’re on the verge of losing your home. It’s always best to try to prevent foreclosure whenever possible, but there are also some options if you do enter foreclosure to consider. The important thing is to make sure that the entire family makes it through, even the pets that are now considered family members.

What to do before foreclosure

If you’re on the verge of foreclosure, there are some things to consider as options.

  1. Talk with your lender and see if they are willing to work with you until you get back on your feet. Foreclosing on a home is generally more expensive than just working with you. They will lose a chunk of their money when the homes goes to auction, and they generally have plans in place for homeowners that are falling behind because, believe it or not, it happens so often.
  2. If you’re unable to get back on track in the foreseeable future, you may seriously consider bankruptcy. If you have some form of income but you have debts that are just consuming everything that you bring in, then filing for bankruptcy may help you relieve some of those debt payments while being able to pay for your home. Filing also delays the foreclosure process temporarily, so it may buy you some time.
  3. Come with up 1-2 backup plans. If you’re not going to be able to avoid foreclosure, come up with plans for your family so that you aren’t one day thrown into the wild and have no idea what to do. Ignoring the problem is not going to end well. Be prepared.

If you can’t avoid foreclosure…

What you don’t want to do is lose your house entirely. If you’ve had the home for years and built up equity, it will be completely taken away and you’ll have nothing to show for it if it goes to auction. If the home is in good shape, consider putting it on the MLS and trying to sell it and maximize your sale price. If the home needs too many repairs or if you’re already in foreclosure and the timeline is really tight, we don’t recommend signing under a real estate agent, as that process can go on for a long time and never get sold before the home is foreclosed. It would be best to work with a house buyer company that can pay cash for the home and close on it quickly. A “we buy houses” company like that can be a lifesaver when you’re out of options. You’ll be able to get out of the mortgage, save your credit from a huge hit, and take some cash with you for your next steps. Otherwise, you lose everything and get nothing for your equity.

You may also want to check out some housing market tips on generally what the trends are looking like in the city and what might be some other options. There are discounted homes that you can get into and some programs or grants that can assist with housing if you know where to look. Don’t let yourself get caught up in the foreclosure, it’s time to take action and make moves before it’s too late. And remember, don’t leave your pets behind! If you need to leave the home, take them with you.