When a homeowner goes too long without making payments on their mortgage, banks will move to foreclosing on the home in order to take it back and try to recoup their losses.
The number of months that trigger a foreclosure can differ based on the bank and sometimes a case by case basis, but generally it’s about 6 months before the bank pursues this option.
There are a variety of reasons why there may be a looming foreclosure, including loss of job, reduction in come, medical expenses, or a combination of life events that put financial strain on the homeowner.
If you are dealing with foreclosure, there are some things you can do.
The first thing you’ll want to look into is talking with bank to see if they are willing to work with you.
Banks generally have programs to get you back on track, normally through a loan modification process.
These loan modifications will include some fees, usually a few thousand dollars, that they will tack onto the back end of your loan, but it pulls you out of foreclosure.
The second option available to you is actually going to revolve around the same options, but this service will help you if you’ve been unable to make progress or there are too many unknowns.
NHS Cleveland has foreclosure prevention services, under the Ohio Save The Dream plan, that are free of charge which will help you work towards getting a loan modification or other government funded programs to assist you.
They will show you how to stop foreclosure in Cleveland, Ohio with ways related to the bank’s own processes.
The third option could be to sell the home.
Depending on your situation, selling your house might be the thing that makes most sense.
You may consider selling the home if, even after a loan modification, you’re unable to afford the mortgage.
If you’ve already gone through the modification and either failed to keep up doing the probationary period or you’ve fallen behind again, then it’s unlikely you’ll qualify for another modification.
While putting your home on the market with an agent would probably get you more money in your pocket, there are a few risks with doing this.
The first is that it may require you to put money into the home to make it more attractive to your prospective buyers.
If you’re pending foreclosure, then this would likely be a challenge because you would have just used that money to get back in good standing with your bank in the first place.
The second is that your home may sit on the market for a long time, which would likely extend beyond your foreclosure date.
You may drop the price down to a point where a buyer would pick up the house knowing that it’s at a slight discount, but then you’re still dealing with agent fees, closing costs, and unless the buyer is paying in cash, you still have to wait for the financing to go through.
There are too many events that can occur which would delay the closing, which puts your home at risk of going to auction before it’s sold.
If none of the above options work for you, then you should consider selling to an investment company like us.
The primary benefit to this is that there is no financing involved, which means that we don’t have to wait on any sort of funding institution to approve a loan.
The other benefits include speed, no money out of pocket, and no fees on your behalf.
There are no agents involved, so there’s no commission to pay at closing, and we will cover all of the closing fees.
You don’t have to make any repairs on the house, so there’s no additional out of pocket expenses that you are responsible for.
Additionally, because we’re privately funded, we can close on a home quickly or use other methods to prevent foreclosure with a pending sale.
Usually, our first option is to give you a cash offer, but we realize this doesn’t always make sense, for you or for us.
In many situations, the home’s remaining mortgage balance is too close to the value of the home, so a cash offer doesn’t quite make sense.
In order for a cash offer to work, there must be some equity in the home so that we aren’t losing money in the investment.
However, we can take over payments for a mortgage, even if it’s behind.
We do this all the time with homeowners where there isn’t equity but they are unable to keep paying the mortgage.
This ensures that we take over payments of the house and this is effectively a sale of home, but you no longer have to worry about the mortgage or note payments.
This is one of many creative ways we can purchase a home and help a homeowner get out of tough financial situations.
If you are facing foreclosure and are struggling to find a way out of it, please get in touch with us. We know how to stop foreclosure in Cleveland.
We buy houses in Cleveland and surrounding areas, and we’ve worked with many homeowners across the nation who are in situations
just like yours.
