Losing a job, high medical bills, and divorce—these are just a few of the many reasons homeowners may fall behind on their mortgage payments. If you can’t catch up, your mortgage lender may foreclose. But, selling to a cash buying company can help you out of your jam.
If you’ve missed some mortgage payments, your mortgage lender will send you a notice of default. That’s an official notification that if you don’t pay what you owe, they will start foreclosure proceedings. In foreclosure, the financial institution will take possession of your home and kick you out.
The consequences of foreclosure can follow you for years. Your credit score will plummet, and you will have great difficulty getting any kind of loan for as much as three to seven years. If you can get a loan, you’ll have to pay high-interest rates.
The “Short Sale”
You should discuss your options with your lender. A common remedy is called the short sale. In a short sale, you put your house up for sale, and the lender will agree to accept whatever price you receive on the sale, even if it’s less than what you owe. This lets you walk away with your credit score intact.
However, there are time limitations. You typically will get only 120 days to settle your debt. It could take weeks for your lender to approve a short sale, and then you may not have much time left to sell your house on the market.
Selling to a Home Buying Company
Selling to a home buying company is a viable alternative to listing your home for sale on the open market. Compared to a traditional sale, selling to a home buying company is much faster. You can receive an offer within 24 hours and sometimes close within a week.
It’s also less hassle. When selling to a cash buying company, you don’t have to make any repairs or clean up the house. There’s no commission deducted from your sales price, either.
As soon as you realize you’re having financial problems, contact your lender and learn your options. Ask about selling to a cash home buyer. It may be the fastest way to avoid foreclosure.
Need to sell your Utah home to avoid foreclosure? Click to see how a cash buying company compares to a traditional sale.