The prospect of foreclosure can be a heartbreaking experience for families and their beloved homes. Though you may have invested countless hours, energy, and resources into your property, unfortunate situations can leave you feeling powerless – as if the only option is to lose it all.
The strain of foreclosure for Texas families can be overwhelming, yet the ordeal may drag on for months or even years—an unbearable amount of time to wait.
Thankfully, Texans have an array of choices to explore when dealing with foreclosure in Houston. There are various legitimate methods that can be employed to help you out of this difficult situation and get on the path towards living your life again. These strategies provide a way for you to successfully handle foreclosures while avoiding any legal repercussions.
Are you facing foreclosure? Fear not! This blog post will outline three potent strategies that can help you legally and honorably dodge a foreclosure, while minimizing any monetary burden or commitment. Of course, all of these methods may not apply to your distinct predicament but at least one is sure to be beneficial in the long run. So read on for helpful guidance on how best to avoid foreclosure and relieve yourself from the hardship and stress.
Strategy #1: Work out a deal with your lender
The primary tactic is known as a “foreclosure workout”. This allows you to meet with your lender and propose an alternative solution that enables you to remain in your home while continuing payments on the mortgage. By presenting this option, it can be possible for both parties (you and your lender) to come up with a mutually acceptable agreement that works out better than foreclosure would have been.
Contrary to what many think, foreclosure is not the goal for lenders! They prefer satisfied customers who make their mortgage payments – that’s why they are usually accommodating when making arrangements with homeowners. This may include a period of leniency on your mortgage payments or a plan where you can pay off any unpaid amounts in installments; it could even entail restructuring the amount due by you.
Strategy #2. Bankruptcy
Filing for bankruptcy may seem like a drastic step, but it should be viewed as another tool in your foreclosure prevention kit. By filing for bankruptcy, you are informing all of your creditors that you can no longer make payments on their debts. This action stops the foreclosure process from continuing because all collectors must cease collection attempts immediately.
Filing for bankruptcy is an extreme option: you may be required to liquidate some of your possessions in order to pay off your debts. Moreover, a bankruptcy can stay on your credit report for many years and could affect almost all aspects of life such as taking out loans or even getting jobs. Thus, this should not be the first choice one takes!
Strategy #3. Short sale help for a foreclosure in Houston
When you’re unable to pay off your mortgage loan, a short sale is the ideal route for restoring your financial situation. By selling your Houston home and using the funds from that transaction towards what’s owed on your mortgage, this proactive approach can swiftly provide effective relief of debt.
- By taking the initiative and getting ahead of potential issues, you can proactively manage your stress levels. Foreclosure often brings about an overwhelming sense of helplessness because it’s out of our hands – but by being proactive, you regain a sense of control that helps to reduce this anxiety.
- Selling your property can be an incredibly fast and hassle-free experience. In some circumstances, you could even enjoy the efficiency of selling off your house in less than a week! That’s possible due to local services like Sound Homebuyers that are dedicated to helping individuals manage short sales right here in Houston.
- Participating in a short sale can be an extremely effective way of completely eliminating (or almost completely eliminating) the amount you owe on your mortgage. You may still need to pay any remaining unpaid balance, but there is usually room for negotiation with your lender.
Opting for a short sale on your home can still be difficult to bear, but there is an upside. Your credit rating will not suffer compared to if you filed bankruptcy or foreclosed, making it a great choice in the long run and giving yourself room to maneuver.
If you find that you’d love to sell your house to get out from under your TX foreclosure…
Give us a call today at 832-966-3533 or click here to fill out the form and we’d like to make you a fair all-cash offer on your house!