Everything That You Need to Know About Foreclosure in Minneapolis MN

Sell my foreclosure house

Facing a looming foreclosure is never an easy position to be in, especially if both you and your family have lived in your home for many years. To help you better navigate through these turbulent waters, we are going to take a deep dive into the subject of foreclosure in this blog. In addition to defining the process and outlining a few key elements that you should know about, we are also going to talk about how to avoid foreclosure, and share some of the most effective foreclosure prevention methods that we’ve come across with you today. Because let’s face it, prevention is always better than cure.


But before we can get started, we’d like to share an extremely effective solution for foreclosure prevention that you can turn to no matter where you are in the foreclosure process upon reading this blog post. This option is to sell your house directly to our company. Here at FastPath, we help local home sellers deal with their foreclosure and mortgage debt issues all the time. If you reach out to us today, we’ll help you beat the eviction clock by either negotiating a deal with your lender or buying your property outright for a price that’s sufficient to cover your mortgage debt. In addition to this, for those pushing deadlines, we are prepared to close any deal in as little as 7 days. So call us at (612) 351-2384, or fill out the short form below to solve your foreclosure problems today!


Everything You Need to Know About Foreclosure in Minnesota

Here is our overview of foreclosure in Minneapolis and other places in Minnesota


Everything You Need to Know About Foreclosure Image

These days, foreclosure has become an infamous buzzword among homeowner circles. It’s a word that’s followed by sinking feelings and that has fear-inducing connotations; as such, most people don’t really know much more about foreclosure aside from the fact that it’s a process that should be avoided at all costs.

If you’re one of these people who don’t know much about foreclosure and would like to learn more about the boogy monster that we’ve all been taught to fear, you’ve come to the right place. While foreclosure can be very scary, learning more about the process and its potential solutions will show you that if you’re currently going through it, all is not lost. Understanding the foreclosure process will help you combat your fear and give you hope. So let’s get started!

Introduction to Foreclosure


Learn more about what Foreclosure and how to Process Works in the Section Below.

Before we begin our official deep dive into all things foreclosure, we’re going to start you off with a quick definition…

Definition of Foreclosure: According to the Oxford Dictionary, foreclosure is defined as the action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments.

In simpler terms, foreclosure is a process where the bank takes back a property that you’d purchased using a mortgage loan, once you’ve failed to meet your mortgage payments. If you’ve recently taken a blow to your steady income (by either losing your job or because you’ve had to take on some more financial burdens such as medical bills, alimony checks, child support, etc), you might have missed a few months worth of your mortgage payments. As such, you may be thinking, “I’m behind on my mortgage payments…will I be giving my house back to the bank?”. And this may make you fearful that the foreclosure executioner will soon bang down your and scream, “Off with your head.”

Well, if this is the case, you can stop worrying. The foreclosure process doesn’t kick in suddenly and abruptly when a few mortgage payments are missed. In fact, it arrives in gradual stages that slowly build up into the big eviction, the first of which is commonly known as Pre-Foreclosure.

Pre-foreclosure

This term refers to a period of time when a bank or lender sends regular warnings that the foreclosure process will begin if mortgage payments are not resumed promptly. It usually takes place 3-6 months after your mortgage payments have stopped being paid. From Pre-foreclosure, the actual foreclosure process will only begin when your lender officially files the Foreclosure Notice of Default. From here, you would have officially moved into the dangerous phase in the process that most people are so afraid of.

Behind on Mortgage Payments


Behind on mortgage payments and Looking for Solutions? Find out more about this Below.

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If you find yourself starting to fall behind on your mortgage payments due to increased financial strains, and the first foreclosure warnings start trickling in from your mortgage lender, it’s easy to start panicking. Even if you somehow manage to pick yourself up and continue your current mortgage payments, catching up on a past due balance can be quite a daunting challenge. And this may make you feel even more stressed and overwhelmed.

Be that as it may, you shouldn’t worry too much. If you find yourself thinking, “ Help, I’m Behind in My Mortgage Payments,” and wondering if foreclosure is inevitable for you, you should know that’s not. No matter how bad your outstanding debt may be, there are still a few solutions that you can turn to in order to avoid losing your property just because you’ve missed a few mortgage payments. If you can’t make your mortgage payments, here are some things that you can do:

  • Reach out to your lender and try to negotiate a deal.
  • Consider Renting out your property as a way to avoid running into mortgage payment trouble.
  • Consider participating in an MFA program (Making Home Affordable).
  • Borrow funds from a friend or private investor.
  • Find a way to sell your house even if you’re behind on your mortgage.

And if the worst comes to worst…

  • Declare Bankruptcy.

The options above will be sure to help you avoid foreclosure if you’re currently struggling with your mortgage payments.

But Why is Foreclosure so Bad Anyway?


Are you curious about the effects of going through a foreclosure? Find out Below.

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Have you ever wondered why foreclosure is such a bad thing, and why so many people are afraid of it and try their best to avoid it like the plague? I mean if you really think about it, according to the definition above, all foreclosure does is take back ownership of your property and reassign it to your lender. But if you’ve already been struggling to make your mortgage payments, would that be such a bad thing. By shedding the troublesome property that’s been giving you and your family so much grief, and that has become a financial burden, you’ll be able to move on in your life and start fresh. Who wouldn’t want that?

Well, all that makes total sense in theory. However, in real life, it’s not that simple.

Foreclosure has terrible effects for families in Minneapolis MN, and throughout the country. It doesn’t just increase stress levels and put emotional stress on people; it’s also a guaranteed recipe for financial ruin!

If you’d like to learn more about foreclosures effects in Minneapolis MN and find out how a foreclosure will impact your life, we’ve put together all the answers you’re looking for below:

  • Loss of your home: Since foreclosure is a process by which your lender takes back the property that’s bought on your behalf and lent to you, it goes without saying that you’ll lose your house. This may leave you in an uncomfortable position with no roof over your head and fewer living options.
  • Decrease in Your Credit Rating: Your credit score will also be lowered by a foreclosure, which is quite devasting. Bad credit will impact your ability to make most purchases (e.g. groceries, cars, clothes, etc.). In addition, you’ll also have to suffer from exorbitant interest rates, which will make everything that much more expensive.
  • Loss Potential Job Opportunities: When future employers ask for your credit history as part of your job application and see evidence of a foreclosure on those documents, this may impact your ability to secure that job.
  • Loss out on Future Housing Opportunities: Landlords also run credit checks before they agree to lease their property out to you. As such, having gone through foreclosure will make you look like a bad investment, which will most likely result in your application being passed over for desirable properties.

All of these things will be sure to affect you if you’re unfortunate enough to go through a foreclosure. Because of this, foreclosure should be avoided at all costs!

Foreclosure Solutions and Prevention Measures


And last but not least, we are going to cover some foreclosure solutions and prevention measures.

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Lastly, before we conclude on this blog, we are going to talk about how to avoid foreclosure and outline a few solutions and prevention measures that we’ve seen are quite effective here at FastPath Home Buyers. It’s easier to deal with foreclosure when only a few mortgage payments haven’t been met and it’s still early days. However, if you’re in a position where the process has progressed quite significantly (all the official foreclosure paperwork has been submitted by your lender and the eviction notes are starting to roll in), your situation is bound to be a little harder to resolve.

Be that as it may, this does not mean that there aren’t a few solutions that you can turn to in order to avoid the financial nuclear bomb that is foreclosure. Even if you only have a week left on the clock before the bank seizes your property, there are still a few ways to avoid foreclosure that you can consider. These foreclosure solutions and prevention measures may not all be effective for your specific situation. However, they will at least provide you with a place to start.

  • Pay off your mortgage/sell your property: The quickest and easiest way to end the foreclosure process is to pay off your mortgage loan. This option is quite effective because it gives the bank what they wanted from the very beginning. If you’re wondering, “can I sell my house in foreclosure”, finding a buyer (such as our company) who can pay cash at short notice will be a great way to do so. The bank will be very happy to accept the sale proceeds and leave you alone.
  • Work out a deal with your bank: Sometimes you can work out a deal with your bank. With this option, you’ll sit down with a mortgage or foreclosure specialist from your bank and talk to them about changing the structure of your mortgage payments. Such arrangements would spread your payments out over a longer time, reducing your monthly installments and making them more affordable for your present financial circumstances. Whatever deal you finalize, you just need to make sure that it works for you long term — you may not be able to repeat this process.
  • 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 mortgage debt. This option will keep a foreclosure from impacting your credit score and it will also get the bank off your back!
  • Give your deed in lieu: Another option would be to execute a deed-in-lieu-of-foreclosure. This is another type of lender negotiation. With this option, you’ll agree to give the bank the deed to your house without them having to put you through the foreclosure process. This will often only work if your house is worth approximately the amount owed on your outstanding mortgage balance. If not, the bank may pursue the difference.
  • File for bankruptcy: In some ways, a bankruptcy is far more dramatic than a foreclosure because it impacts your whole life. However, once you file for bankruptcy, the foreclosure process has to stop… so it’s still a foreclosure prevention measure.

So there you have it. Here is our list of the most effective ways to avoid foreclosure. If you’re not sure which one to do, consider this: for those who can afford to make their payments and who still want to remain in their homes, a foreclosure workout arrangement (#2) would probably be the best option. So if you’re wondering, “how to stay in my home after foreclosure”, working out a deal with your lender should be your priority.


Do you have more questions such as: Can you get your house back after foreclosure? What can you do to speed up the sale of your property when selling during foreclosure? What can you do to refinance your mortgage? Whatever questions you have, we’ll be happy to answer them. Simply call (612) 351-2384 or fill out the short form down below and we’ll get back to you with all the answers you’re looking for, and a potential solution for your foreclosure problems.

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