Facing foreclosure can be devastating to a family. And without a significant improvement in finances, losing the house is very likely. If you are threatened with a home loan foreclosure against your property, you have a few options which can prevent an auction. But you must act quickly to get out of pre-foreclosure before the bank sets a sale date.
If you’ve already been served with papers, you can still prevent a foreclosure auction by exercising one of these alternatives to foreclosure: Deed in Lieu of Foreclosure, Chapter 13 bankruptcy, and a sale (or a “short sale”) of the home.
But the longer you wait, the more difficult it will be for you to exercise one of these options.
If you’ve waited until the last minute to try to stop the foreclosure sale date, a Chapter 13 bankruptcy filing will immediately stop the process. You will then have a brief period during which you can try to restructure the loan or to take other actions to settle with the mortgage company.
You can stop the home foreclosure process once it has started by offering a deed in lieu of foreclosure to the lender. (In exchange for debt forgiveness, you deed your property to the bank.) But if you have a second mortgage, the bank may refuse because the second mortgage may increase their liability.
For most homeowners, the best way to avoid a bank sale is for you to arrange to sell your property before the foreclosure auction.
If your home is not worth enough to pay off the loan, a short sale (without a realtor) to a real estate investor is your best choice. Take the investor’s offer to the lender for their consideration.
A short sale is the term used when a lender accepts an offer for less than the loan amount in exchange for releasing the loan. But if the investor’s offer is more than the loan balance, sell directly to the investor. You will then be able to settle your debt with the lender and keep your equity.
Dallas Cash Home Buyers can help you with a short sale or a direct sale. We are quick sale home buyers who have been helping Dallas, Texas homeowners avoid mortgage foreclosures for several years. Our many satisfied clients speak to our experience and reliability.
The Quickest Home Buying Company Around
When facing mortgage foreclosure, you don’t have any time to wait around for a buyer. And our streamlined method of completing real estate transactions is likely to have your sale completed in a couple of months.
We Buy Houses for Cash
We buy short sales with cash. When we offer to purchase your house, we don’t need any time for loan approval. We have the cash in hand so that at closing, the sellers are paid in full.
No Out-of-Pocket Fees
When selling to us, you have no real estate commissions to pay. And no other closing costs will be due at closing. The offer we make is the cash you receive—with no hidden fees.
We’ll not Ask for Repairs
If you need to short sell your home, don’t worry about making repairs. We buy your home AS IS. The minute we have a signed contract is the same minute that you are released from the condition of the house.
It’s Easy for You
When you sell to us, you have no paperwork to worry about. Even if we’re making a short sale, we take care of all the paperwork. All you need to do is to sign and date a few signature pages.
A short sale affects your credit. But any other negative consequences are minimal compared to a foreclosure. The cost savings of a short sale to a lender are enough to promote short sale help for sellers in the form of relocation assistance. For future loan applications, short sale disclosure is not usually required—allowing the immediate purchase of another home.
A foreclosure can drop your credit score by as much as 400 points. Whereas, a short sale can affect your score by as little as 50 points. A foreclosure affects future loan applications, but a short sale typically doesn’t have to be disclosed. And you can purchase another house immediately. Also, many lenders offer short sale assistance for relocation help.
You will be served with an eviction notice (and court date) by the constable after the auction. You then have five days after the judge’s ruling to move out or make an appeal. If you refuse to move out, you will have another 24 hours before you and your possessions can be physically removed from the property by law enforcement.
The lender will begin contacting you after you start missing your house payments. If you take no action, you will receive a notice of intent to foreclose. And with further inaction, you will be served with foreclosure papers. A Notice of Sale will follow—which will be filed at the county as well as posted on the courthouse door.
Your house can stay in pre-foreclosure for 120 days before foreclosure is initiated. Pre-foreclosure begins when you first get behind on the mortgage and continue with missed mortgage payments. You then have 20 days to cure the default. If you do nothing, you will receive a Notice of Sale in the mail at least 21 days before the auction date.
When your mortgage is in default, and you are ready to take action, call us. We will make a cash offer for your house. If our offer is not enough to pay off the lender, we can help you with all the negotiations and paperwork necessary for a short sale.