Nobody wants to lose their home. But sometimes financial circumstances can turn against you and make it next to impossible for you to meet your mortgage payments, no matter how hard you try. As such, if you’ve missed a few mortgage payments, you may be wondering whether you’ll have to give your house back to the bank.
Well, the short to that question is both a Yes and a No. While foreclosure won’t affect everyone that falls behind on their mortgage payments, it can affect you if your situation progresses too far. When this happens, you may be forced into having to give your house back to the bank in Roseville MN which will leave you without a place to live temporarily. In addition, there may also be long-term consequences, including a long-lasting impact on your credit score (which will most probably affect your overall financial future).
No one wants this. Most people may not think that this is true, but foreclosure is actually not an ideal outcome for both you or your bank. Most lenders (including banks) don’t want to foreclose on properties simply because it’s much for difficult to make a profit off of a foreclosed property. As such, if you find yourself facing foreclosure in Roseville MN, there are still a few options that you can pursue in order to avoid it. And these options could potentially help you get back on track, to financial solvency.
In this blog, we are going to talk about foreclosure in Roseville MN, how it works and outline some of the options that you can turn to in order to avoid it such as opting to sell your house during foreclosure.
Overview of the Foreclosure Process in Roseville
Read on to explore the foreclosure process in Roseville MN and learn more about how it works.
The foreclosure process can vary depending on your state, and on the type of mortgage you have.
Typically, after you’ve missed 2-3 months in mortgage payments, your loan company will begin sending you notifications. Over time, if you fail to pay back the mortgage payments you’ve missed, the loan company may send you a foreclosure notice of default. This informs you that they are on the brink of foreclosing on your house. After this, they will now have the power to put your home on public auction.
How long you will then be able to stay in your home after it’s sold on auction varies from state to state. However, at some point, you will be forced to move out and find a new place to live.
Option to Avoid Foreclosure in Roseville MN
Below, we are going to outline a few options that you can turn to in order to avoid foreclosure in Roseville MN
If you wait until your home is foreclosed, foreclosure can have a large impact on your life. As such, it’s very important to take action and begin pursuing ways to avoid foreclosure as early as possible.
1. Make a Deal with Your Lender to Avoid Foreclosure
The first option that you have (in order to protect yourself and your family from foreclosure) is to work out an arrangement with the loan company, called a “deed in lieu of foreclosure”.
This arrangement involves you handing over ownership of your home to the loan company, without you having to endure the horrors of the foreclosure process. Banks and loan companies usually readily accept such agreements, because they save them the money they would have had to spend on foreclosure proceedings. This is an option that allows you to at least salvage your credit score.
2. Sell Your House Fast to Avoid Foreclosure
You can also avoid foreclosure by selling your house before it’s lost at the auction. If your loan is paid in full through the sale, there will be no more penalties against you and your credit rating. (If your loan isn’t paid in full, you will need to make up the shortfall). FastPath Home Buyers can help you sell your house fast, ensuring that you beat that auctioning deadline.
Here’s an example: Let’s say you owed $100,000 on your home and you sold your home to us for $90,000. You would give that money to the loan company, along with $10,000 to make up the shortfall, and your loan would be paid off. (But if you go a step further and contact a real estate attorney, you may also be able to negotiate a “deed in lieu of foreclosure deal”. This deal makes sure that your loan company or bank agrees not to go after the difference in exchange for the deed to your house).
But Why Should You Even Bother?
Why do people choose to sell their homes instead of going through foreclosure? (After all, they still won’t get to live in their homes anymore.)
Well, losing a home can be difficult. However, the impact on your financial situation and your credit is considerably less if you take action than if you simply wait out the foreclosure process. In fact, going through foreclosure could impact your credit score by as much as 100 to 150 points. So the short-term challenge of selling your house is still a better choice than the long-term pain of giving your house back to the bank.
Whatever your situation, if you find yourself backed into a corner and are facing imminent foreclosure, consider reaching out to FastPath Home Buyers for help. Here at FastPath, we buy houses for cash in Roseville, and its surrounding areas. Our main mission is to provide aid to our local community; as such, we’d be happy to buy your house fast (in less than 2 or 3 days) with enough money so that you can use the sale proceeds to square your debt with the bank and avoid foreclosure. Simply call (612) 351-2384 or fill out the short form below, and we’ll get back to you with a competitive cash offer for your house.