Are you facing foreclosure or know someone who is? This article is precisely what you need. This blog will teach you everything to know about foreclosure, the process, and how to avoid it. Bear in mind the importance of having good communication with your lender. It increases the chance of a positive outcome. Let’s start.
What Is Foreclosure?
Foreclosure is the legal action in which your mortgage lender takes control or repossession of your property. The lender can eventually sell the property at an auction or retain ownership.
If you’re going through foreclosure, know that the worst thing to do is to ignore your lender. There are several ways to avoid foreclosure. Many lenders are willing to work with you, sometimes offering solutions like mortgage loans modification.
How Does It Work?
Depending on your state, foreclosure can be judicial or non-judicial. In Florida, foreclosures are judicial, meaning that the lender will file a lawsuit against you to initiate the foreclosure process. If you lose, the lender takes ownership of your property and sells it at auction.
Timeline
For the sake of addressing foreclosure in Florida, we’ll stick with foreclosure’s judiciary process. It starts with:
- Missing your first mortgage payment. Depending on your lender, you can have up to 15 days of grace to pay your mortgage after the due date.
Anyways, always talk to your lender because some might report your late payments to the credit bureaus, damaging your credit score. Trust us, the last thing you want is a mark on your credit.
- Then comes default. After you miss your payment for 30 days, you’re at default. After that, your lender can initiate a lawsuit against you.
- Foreclosure lawsuit. If you don’t respond to the lawsuit, the judge will grant the lender a default judgment. It would be best if you answer the lawsuit so that the case can go to trial, and with the help of attorneys, you get to keep your home.
- Pre-foreclosure. You have until your house sale to pay what you owe and stop the foreclosure process. An option to consider is selling your house to Henry Buys Homes for instant cash and fast. We buy houses in foreclosure, so you don’t damage your credit score and pay your mortgage debt.
- Notice of sale. If you fail to pay your mortgage debt during the pre-foreclosure period, your lender will sell the property, and you’ll need to move.
Why Homeowners Go Into Foreclosure And How To Avoid It
There are plenty of reasons why homeowners like you go into foreclosure. And they don’t go into foreclosure necessarily because it’s their fault, but because accidents happen. Let us show you:
- Illness or injuries: sometimes, homeowners suffer diseases or injuries that diminish their working capability, hence the earnings. Plus, having to pay for expensive medical bills.
Avoid foreclosure by investigating what the disability benefits offered through your employer are. Then, talk to your lender about modifying your mortgage.
- Increased mortgage payment: most buyers work with adjustable mortgage rates, which initially start low. But after five years, the rates will increase, and so the payment.
To avoid paying crazy amounts of interest rates, consider refinancing your mortgage into a fixed-rate mortgage loan. That way, your monthly payments won’t ever change until the loan terms end.
- Unemployment: the pandemic has negatively impacted every country’s economy, causing unemployment rates to rise. Usually, in our country, unemployment benefits only cover a fraction of a person’s usual earnings. Without earnings, your mortgage payments might be at risk.
To avoid going into foreclosure, you could try talking to your lender and modifying the loan’s terms or request forbearance. You could also consider our previous option. Selling your house to Henry Buys Homes and start a new life, debt-free. We buy houses so fast and for instant cash in Jacksonville, Florida, that you won’t have time to worry about anything.
When You Feel Foreclosure Is Inevitable, Henry Buys Homes Comes To The Rescue!
Henry Buys Homes in Jacksonville, Florida, is the company that helps you avoid foreclosure in such a smooth and rapid way. Save your financial credit by selling your home to us. We allow you to pay your debt and have a clean start.
We buy houses in foreclosure for a fair cash price within a timeframe of seven days. That means you can have cash on your hands this time next week! Don’t worry about repairs or paying commissions or closing costs; you wont get extra charged by us for selling your home. Contact us to get your non-obligatory cash offer.