Foreclosure: Finding Shelter From The Storm – Get A Cash Offer On Your House

Sometimes bad things happen to good people. One bad month, a loss of job, health problems or a tragic family event can put a strain on a person’s finances. The stress one feels already is immense. Add onto it, the threat of losing your home to foreclosure, and you have a perfect storm. Many times, the person facing foreclosure does not have the information about what they are facing. Having the information about what you are facing can help you begin to find the best solution for you and your family. Therefore, read on to learn about the process of foreclosure. What is it? How does it work? And what can you do about it? Can you find shelter from this storm?

Foreclosure Is Common

Foreclosure is where a lender, most often a bank, takes possession of a property from the borrower due to failure to pay the mortgage. The bank then sells the property at auction to get as much as they can out of the property. The borrower is forced to move, takes a devastative hit to their credit and in most cases gets no money for themselves from the sale of the property. Foreclosures are common. According to ATTOM, there were 324,237 foreclosure filings in the U.S. in 2022. That is up from 2021’s foreclosures and according to ATTOM’s mid-year report for 2023, The U.S. is on track to beat the 2022 record as well.

I write this, not only to inform you. I wish to encourage you. Many people feel shame when they get into a situation like this. Perhaps you do as well. Perhaps this shame adds to your stress and makes it difficult to reach out to a guide for help. The fact that you are not alone in facing the giant of foreclosure means that you do not need to feel shame. It also means that there are options for you. Time is of the essence, however. The sooner you act, the more options you have available to you. Read on to learn more.

Notice Of Default

After you fail to make a monthly mortgage payment, the lender will attempt to contact you to receive payment. If they cannot accomplish this, they will send you a Notice of Default. The time it takes to get a notice of default differs depending on the lender, but it is usually between 2 and 6 months after your last missed payment. Now, the foreclosure clock begins to tick. Once there is a notice of default, a foreclosure sale is scheduled.

Foreclosure Sale Is Scheduled

Once there is a notice of default, the lender schedules a date for the foreclosure to be finalized. This is known as a foreclosure sale or a foreclosure auction. The sale is usually scheduled for 6 tmonths after the notice of default. The borrower has from then until 5 days prior to the sale to make your payments current or pay off the entire loan. Six months may feel like a lot of time, but it goes by quickly. At MNA Investments LLC, we often times witness folks waiting to look at their options until a month or two before the auction date. Unfortunately, the less time they have from the auction date, the less options that are available to them. Keep this in mind.

During this time, you will undoubtedly receive many calls and mailers by investors who offer their services to you. A variety of options are available to those who cannot pay what is owed to your lender. Selling your house for a fair cash offer may be the best option for you. If your home has low equity, a short sale can be a way to escape foreclosure. Contact one of our guides at MNA Investments to learn more about what options we offer.

Notice Of Sale

Approximately 90 days after your Notice Of Default, you will receive a Notice Of Sale. It is close enough to the scheduled foreclosure sale, that the lender has decided it will prepare to go through with taking possession of your home. This puts the pressure on you even more. You still have time. However, time is quickly running out for you.

Auction

If the lender does not receive the money that is owed to them by 5 days prior to the foreclosure sale date, the auction takes place as scheduled. Chances to postpone the sale are low but not impossible. At this point in the process, the lender officially takes possession of the property.

Typically, the foreclosure auction takes place at the county courthouse in the county the property is in. In some cases, the lender is not satisfied with the amount they would get for the sale of the property. For instance, if the property could not be sold for enough to satisfy the loan. At this time, the lender would market the property themselves.

Most probable is that the property sells for what is owed on the property or close enough that it appeases the lender. In rare cases, it is possible for the borrower to receive some money from the foreclosure sale. If the property sells for more than what is owed to the lender, the excess goes to the borrower, The likelihood of this end is highly unlikely, however, because most people in this situation have additional liens and judgments against them that all need paid before any excess funds can be paid to them.

In the rarest of cases, a lender may rent the home back to the defaulted borrower. Historically, this happened in 2008 during the real estate crash of 2007-2008. With so many houses in foreclosure and so few buyers, lenders had no choice but to rent houses back to people who could not maintain their mortgages.

Eviction

Except in the rare case that the lender rents the home back to the borrower, after the lender takes possession of the property, eviction is inevitable. The borrower’s credit is destroyed, making it harder to buy a home or in some cases rent another place. This is the worst-case scenario. While selling your house for a lower than market rate hurts, it is much better than what happens if the lender goes through with foreclosure.

What Can You Do?

I don’t have to tell you that the best ending to this storm is you come out of it with your home and credit intact. What can you do if that just isn’t possible for you? Even if you cannot keep your current home, you do not need to experience losing your home with nothing to show for it. There are a number of options available to people depending on certain qualifiers. Read on to learn about some of these options.

Sell Your Home On The Market

The way to ensure you get the most money possible is to sell your house conventionally. This is the best option for folks who:

Have enough time before their foreclosure date, and
Whose home is financeable.

While this option will fetch you the highest profit, there are many things to consider here. Usually, you will need to hire a licensed real estate agent to guide you through the complex process. I personally recommend David Smid from REMAX. David has 15+ years’ experience in Oregon real estate. He specializes in pre-foreclosures. My company has worked with him almost exclusively since the beginning.

Another factor in deciding if you are able to sell is if the home is financeable. If it is not, you will need to spend the money to get it to standards. There are also inspections to consider. Many times, folks who are in financial trouble with foreclosure cannot afford to sell their home conventionally. Sometimes there simply isn’t enough time. It can take as little as 30 days to sell a house but can take as long as 6 months depending on what the needs of the house entail and what the market is like.

If this is not a possibility for you, there are more options available.

Sell To A Cash Buyer

A common way to escape foreclosure with some money to show for it is to sell to a cash buyer. While selling to a wholesaler will not give you as much money, there are many advantages to going this route.

Close on your timeline: Make sure to close before your foreclosure auction date.
No out of pocket costs: While there are some costs that effect the amount of cash you will get at closing, those costs are not out of pocket. This is a great advantage for those who simply cannot afford the costs associated with selling conventionally.
No inspections
Escape foreclosure (and the credit devastation that comes with it) and have some cash to move on to the next chapter in life.

If you are reading this article, there is a high chance that you are going through the foreclosure process and have undoubtedly received a plethora of mailers and phone calls from cash buyers looking to do business with you. It can be overwhelming to know who you can trust, as not everyone is out for your best intentions. At IntegriHomes our goal is to serve you with compassion and integrity. We wish to guide you and help you find the best solution that works for you and your family.

This is not the only option available to you and not the only option we can offer. Read on to learn more.

Short Sale

A short sale can be the perfect option for those whose home has low equity. This means that the value is less than what they owe. Short Sale can also help in stripping additional liens that are against the property. While the process is complex, it can be a viable option. It is best to work with a bank negotiator who knows the industry and how to talk to the banks. The bank negotiator asks the bank to accept less than what is owed on the property due to house being worth less. There can be other arguments made depending on your individual situation.

If the bank accepts the terms, a payout is scheduled. Many times, IntegriHomes can make a sum of cash be a part of the contract and so while you still lose possession of the property, you are able to move on with your credit intact and some cash in your pocket to move on to the next chapter in your life.

Purchase/Rent Back

Another option that can be done if the numbers are right is this: An investor buys the home and rents it back to you. This is great if you do not wish to move from the home, but you cannot afford to maintain the mortgage. However, the numbers must make sense for both parties to make this option work, but it is an option that is worth discussing.