Purchasing a house or any property for that matter is a fairly easy task. Many homeowners have virtually no knowledge of real estate and the way that markets, property values, or mortgages work. As soon as they start having financial difficulties and miss a couple mortgage payments, they end up losing their house because they didn’t know what to do when faced with foreclosure.
There are a number of foreclosure options in Houston for homeowners that don’t want to lose in a foreclosure. Some of them have more advantages but will take longer than most while others are quick last-ditch attempts to halt foreclosure proceedings. The best way to stop a foreclosure can vary depending on the owner’s financial situation and the time frame they have to work with. It’s usually easier (and cheaper) to resolve foreclosure issues as soon as they come up instead of waiting until your property is set to foreclose in a couple days.
If you know a thing or two about foreclosure, then you probably have an idea of how it can affect your credit. A foreclosure can permanently damage it and make it very difficult to get a decent mortgage in the future. That’s why you need to know what foreclosure options you have to choose from, so you can figure out what the best way is stop your house from being auctioned off. In most cases, you want to do all you can to avoid foreclosure, even if it means losing your house so don’t give up and let it foreclose just because you figure you’re going to lose it anyway. No matter how stressful it is to have a house in the pre-foreclosure stage, you need to persevere and do what needs to be done. Do some research, explore your options, and find out which one suits you best. Here are a couple of basic foreclosure options in Houston.
1. Asking your lender to alter your loan.
One foreclosure option is to contact your lender and see if they are willing to make some changes to your loan. Don’t ignore their attempts to contact you as this could give them the idea that you aren’t going to pay which encourages them to start the foreclosure process. If they are convinced that you’re serious about keeping the house, they’ll probably cut you some slack and discuss your different loan options with you.
They might ask you if you want to change to a mortgage that has a higher interest rate and cheaper monthly payments. If you can’t afford the current monthly payments, then this might be the way to go. You’ll probably end up paying more in the long run but at least it won’t be as hard to come up with your mortgage payment every month.
You could also discuss refinancing your house. That means you get to take out any equity you’ve put into the house so far and restart your mortgage. It shouldn’t be that hard to get your lender to agree to this if your payments aren’t backed up more than two or three months.
Another option is to ask them to let you can continue your mortgage from this month and let you pay a small portion of those late payments every month (along with that month’s payment) until your current on your mortgage. This will only work if you can convince them that you can’t afford to catch up the late payments at this time but have enough money to keep making monthly payments.
2. Giving your property to your lender.
Homeowners that have exhausted all other options for preventing foreclosure may have to consider giving the property to their bank to settle their debt. As you would lose any equity in your home if you sign it over to your lender, this isn’t an ideal method for stopping foreclosure proceedings, however it is usually better than letting the house foreclose. A foreclosure on your credit record can cause a lot of trouble for you in the future, especially if you want to get another mortgage loan. Try to make sure there really isn’t any other way to prevent foreclosure before choosing this option.
3. Hiring a realtor to sell your house.
Another foreclosure option is to simply hire a real estate agent to sell your house so you can keep your equity and avoid foreclosure altogether. While most realtors do have a lot of experience selling houses and know what they’re doing, some may not have your best interests in mind. There are some realtors who may make the mistake of letting their properties sit on the market for too long while they wait for a buyer who will pay more so they can receive a higher commission. If you’re facing foreclosure than you might not be comfortable making this gambles manner because you might lose the property and be left with nothing if you can’t find a buyer before the auction date.
4. Selling your home on your own.
You can also attempt to sell your house by yourself. That way, you will have more control over the sale and won’t have to pay a commission (among other fees) to a realtor with money you don’t have. It can be as easy as putting up a “For Sale By Owner” sign in your front yard and waiting for someone to call and make you an offer. You can also put your house on the property market or place an ad in a local newspaper. However, the problem with this (the same one with using a realtor) is you may not be able to find a buyer who will pay your price before the house forecloses. If you’re expecting to receive full market value for your house, it might take anywhere from weeks to months (in some cases years) to find a buyer. On the other hand you don’t want to sell the house for dirt cheap and lose money that you might need to get back on track.
5. Selling to a firm that purchases houses.
One of your best foreclosure options in Houston is to sell your home to a company or individual that purchases and invests in properties. You need someone that will take the house off your hands for a decent sum and can close quickly before the house is lost in a foreclosure.
We purchase houses in any condition for reasonable prices. We won’t waste your time by making you wait for an answer or haggling over small details. Contact us with your property and contact info so we can make you an offer and, if you’re satisfied with it, purchase your house immediately.