If your family is being faced with the unfortunate circumstances of foreclosure, you are not alone! We have gone through this process ourselves, in fact, the owner of our company has been foreclosed on, which is one of the main motivating factors for starting this business – to help people going through the same thing.
We are all too familiar with the pain and stress that comes with losing a home, and it puts tremendous pressure on families, relationships, jobs, etc.
Most people who are going through the pre-foreclosure process, meaning that they are only 1 – 5 months behind on their payments and haven’t been given an eviction date yet, don’t know about the many options that they have available to them, and most end up losing their homes and being saddled with a lasting negative mark on their credit report.
There are options, and you do have some power in this situation, so please listen to us as we are one of the only Foreclosure Experts in Colorado Springs, Denver, and Pueblo.
Option #1 – Sell Your House And Pay Off Your Loan
This may not be what you want to hear, but this is the number 1, least painful option for those facing foreclosure. The bottom line is that the bank needs to be repaid or else you’re going to be evicted regardless, and on top of that you will have this negative mark on your credit report for seven years, preventing you from buying another home.
The best option for most people who are going through foreclosure and have some decent equity in their property, meaning that you owe a lot less on the loan than the house is worth, is to sell your home quickly for cash for at least a few thousand above what the loan payoff amount is, because then this allows you to pay off the bank, and pocket some extra cash to allow you to maintain your lifestyle, find a new place to live, and set up your new living quarters until you can get back on your feet.
Option #2 – Restructure Your Payments
Another good option for people who are facing pre-foreclosure is to contact your lender and attempt to restructure your payments. Not all banks will do this, and it is a very difficult thing to negotiate and get approved, but it has happened in certain cases, so we decided to list it. Since you are already facing foreclosure, you might as well contact your lending institution to see if there is anything that you can do to renegotiate the terms of the loan in your favor.
Some banks might be willing to renegotiate the terms rather than having to go through the long, drawn-out, difficult process of evicting a homeowner and reselling the property. It’s always worth a shot to at least give them a call and see what types of options are available, if any, for restructuring your payments.
Option #3 – Give Your Deed In Lieu
This is basically handing over the deed to your property to the bank in order to halt the foreclosure process. This option does work very fast but is only a good option for those whose home value can pay off their entire loan. If your home is worth less than you owe, then this will not work, because you would still have a remaining balance on the mortgage, as the house wasn’t enough to pay off the entire principle.
This is not really a great option, because oftentimes when you sell your home yourself fast for cash to an investor such as us, you can get a higher payout, and actually walk away from the foreclosure with cash in your pocket, whereas if you simply turn over your deed to the bank, you don’t get anything, they just get the house!
Option #4 – Do A Short Sale
A short sale is ideal for those who owe a lot more against their home than it’s worth, or what they would get for it if they sold it. If you owe more in debt against your home than it’s actually worth, then the only option is to negotiate a short sale with the bank, which basically means that you are going to list the property for sale in an attempt to pay off the loan, and hopefully they will agree to accept the lower amount and clear the debt for the property in full.
A lot of banks will do this, as long as the balance that you owe to them is not too much higher than what the house is worth, but if you owe a significant chunk of change, then chances are they make take legal action to attempt to collect the debt, which can result in financial distress and can really mess up your financial future. This is why it’s never a good idea to borrow large amounts against the equity of your home to pay off credit cards or other bills. This is how a lot of people pushed themselves into financial ruin, so please do not borrow against your homes unless you are improving the value of your home!
Option #5 – File For Bankruptcy
Filing for bankruptcy does stop the foreclosure process, which is why we are listing it here, but let us be very clear: we DO NOT recommend using this strategy to halt the pre-foreclosure process, as it can have extremely long-lasting, devastating consequences to your credit, and your entire life in general. Option 1 is a much sounder, safer option that will not impact your credit, so that is what we recommend doing.
When you file for bankruptcy, that will remain on your credit for at least seven years, in which time you will not be able to get approved for any type of loan, and it will make your entire legal and financial life extremely difficult, which is why we recommend you NEVER file for bankruptcy, even as a last resort because there is always a better option. I repeat, NEVER file for bankruptcy, EVER!
For more information please read Foreclosure Prevention Measures In Colorado Springs
You Can Also Learn More About Foreclosure In Our Other Articles:
- How To Avoid Property Tax Foreclosure In Colorado
- Foreclosure – Notice of Default in Colorado
- What Is A Pre-Foreclosure In Colorado
- Stop Foreclosure Now In Colorado
Foreclosure Prevention Experts – How Our Team Helps You Stop Foreclosure Fast!
Our team here at HBR Colorado can help you stop foreclosure in its tracks by using option #1, sell your home fast for cash! What our company does is we will come in and analyze your situation, see how much you owe on the property, figure out exactly how much your home is worth…And then we will crunch the numbers and come up with a fair, cash offer for your property that will allow you to pay off your existing loans and debts, plus have some pocket cash to walk away from the deal with, to allow you to maintain your lifestyle and figure out your new living situation, instead of being out on the street.
If you are facing pre-foreclosure, but still haven’t received your eviction date yet, and there’s still time to pay off your loan….and you have paid down the principal of your loan a significant degree to where the balance is less than what the house is worth, then we can find a common price area that will allow us to come in and buy your home for that amount so that you can pay off your loan in full, and have some pocket cash to walk away from the closing table with. This will prevent the negative remarks from appearing on your credit report, so once you get yourself back on your feet, and you’re in better financial condition, you can apply for a new loan and get another house once you regain your financial traction.
Take Action And Call Now!
If you’d like to talk to one of our foreclosure experts now about your situation and how we can possibly help, feel free to give us a call or text at (719) 286-0053 and one of our customer service specialists will do a quick but thorough analysis of your situation and come up with a custom-built plan that will allow you to avoid the negative impact on your credit report, and complete loss of your home without having a nest egg to put towards your next property.
Give us a call now or fill out the form below so we can help! Timing is critical because there’s only a short window during pre-foreclosure when you can sell your home and walk away with cash, then once the eviction date is set it’s typically too late to save the home, and the process, unfortunately, continues without the ability to intervene…so call now!!! (719) 286-0053.
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