Homeowners face the scary reality of losing their homes due to foreclosure. Thankfully, there are options that can help you avoid foreclosure.
Unfortunately, Utahns in the Salt Lake City area are not exempt from this fact. However, it is important not to let the anxiety and fear of a looming foreclosure overwhelm you.
Learn more about how you can prevent foreclosure on your Salt Lake City home below.
Contact Your Lender to Avoid Foreclosure
If you are facing a potential foreclosure, the first step you may want to consider doing is reaching out to your lender to talk about your options. Lenders may offer one of four ways to help:
- Refinancing: Your lender may offer you a new loan with different rates and terms to cover your missed payments and what you still owe on your home. This option will not negatively impact your credit and may help you lower your monthly payment amount.
- Repayment Plan: You may be able to work out a payment plan that is within your budget with your lender. Over a determined amount of time, you will restart making payments in addition to making up your late payments.
- Forbearance: Your mortgage company may agree to offer you a forbearance, which is where they agree to defer mortgage payments for a certain amount of time. These suspended payments are typically tacked on to the tail end of your loan.
- Loan Modification: Your lender may be willing to change the terms of your existing loan, such as how much is due, your interest rate, its length, etc., to help make your monthly payments more manageable.
Consider Filing for Bankruptcy to Avoid Foreclosure
While bankruptcy negatively impacts your credit, it can help you prevent foreclosure. There are two types of bankruptcy: Chapter 7 and Chapter 13. How much income you have will determine which type you can file. As soon as you file, you enter an “automatic stay” that temporarily pauses collections and the foreclosure process, giving you time to figure out how to move forward.
Sell Your Home to Prevent Foreclosure
If, after closing costs, your house is worth more than you owe on it, you may want to consider selling it so you can prevent foreclosure without touching your credit. If your home is worth less than you owe on it, you may want to think about a short sale or a deed-in-lieu to avoid this frightening situation. Your lender will accept your house and waive the remaining balance on your mortgage in many of these agreements.
Contact Utah Sell Now
If you have a home in the Salt Lake City area and need to avoid foreclosure, but are uninterested in traditional selling methods, contact the home buying professionals at Utah Sell Now. We buy houses for cash in any condition and do not require you to make any repairs or renovations! You can even skip the cleaning process! We want to make this process as painless as possible, so there are no closing costs for you, and you can select the closing date. Contact us to get a cash offer today!