Hearing the diagnosis “foreclosure” evokes so many fears, frustrations, confusions, and feelings of hopelessness. But what if foreclosure doesn’t have to end in financial obliteration? There are many different options that can rescue you from foreclosure.
As a homeowner in Louisville, Kentucky, there are a variety of factors that influence your decision regarding foreclosure. Your home isn’t just a piece of property to you. It holds memories, it has been arranged to your liking. Because your home is important to you, it would be foolish to throw it away without weighing the options wisely.
First, you must decide if you want to SAVE your home or SELL your home.
If you decide your home is well worth the effort to SAVE, you will have the option to either modify or refinance your loan.
To modify a loan in times of financial distress, you must negotiate with the bank to restructure and change the terms of your mortgage so that it is affordable to you. It is a good idea to hire someone to speak to the bank on your behalf, someone who knows the situation and has your best interest in mind. This can ensure you will get a loan that is modified to your ability to pay.
The second option is to refinance your mortgage. Refinancing a mortgage is basically getting a new mortgage to replace the old one. By refinancing, you hope to obtain lower monthly payments and lower interest rates. Refinancing your mortgage is a little trickier than a modifying your mortgage because it is a completely new loan that you are creating. With this new loan comes additional fees, and if you aren’t careful, you can end up with even higher monthly interest rates. It is important to also hire a legal professional to help you work through the paperwork and help you get the perfect new mortgage.
If you decide to SELL your home and move forward physically and financially, you will have the option to either list your home with an agent, sell it to an investor, or pursue a short sale.
To find the perfect real estate agent for your situation, start by asking for recommendations from friends and family. You can also look at online reviews (but know that these reviews aren’t always completely accurate). Interview several agents to ensure the one you choose will be a great fit. Don’t be afraid to ask the agents questions about their prior listings, experience, and credentials. The more you know, the more information you will have on which to base your decision. Your agent will then help you sell your home before foreclosure can ensue.
The next option is to sell your home to an investor here in Louisville, Kentucky. Investors are looking for a good deal, but they also want you to get what you need out of the deal. Selling to an investor has the benefits of selling quickly, selling for cash, and selling in as-is condition—investors are easy to work with. Because of the flexibility of investors, you will be able to move out and move on before the foreclosure can catch up to you. Another benefit of selling to an investor is that your home will be well taken care of and typically restored to beautiful condition.
Finally, you have the option to perform a short sale on your home. Basically, if you owe more money on the house than it’s worth, you are in a short sale situation. You will need to work with your mortgage lender to come to an agreement on the situation. With a short sale, the lender will agree to write off part of the mortgage as a loss instead of having the borrower default on the loan. This is beneficial to both parties; borrowers can avoid having a foreclosure appear on their credit report, while lenders can avoid substantial fees associated with foreclosure. The benefit of a short sale is that you have the opportunity to completely eliminate your mortgage debt. Also, your credit will not be as negatively affected with a short sale as it will be with foreclosure. You will be able to buy another home more quickly going through a short sale rather than foreclosure.
To get started, Contact Us. We have had hundreds of experiences with short sales and can walk you through each step of the process. Also, to learn more about the specifics of a short sale, refer to our article Short Sales, Put Simply.
While all these options might be overwhelming, you need to know that there is hope in the midst of foreclosure. We here at LST Properties can help you with each of these options and answer any questions you may have. We can help you negotiate with the bank to modify or refinance your mortgage. We can list your property since we are licensed. We, as investors, can buy your property quickly, with cash, in as-is condition. We will also help you negotiate a short sale. We want you to thrive and experience financial freedom. Don’t hesitate to Contact Us today, and check out our sister website at www.ForeclosureLouisvilleKY.com for even more information!