How to stay in my home after foreclosure in Salt Lake City
There are 5 primary ways to stay in your house after a foreclosure in Utah. So when you are asking yourself, “how to stay in my home after foreclosure”, these are your best options. The first two options are the most successful and least costly while the other options are a little more risky. And technically, if you are able to stay in your house, the foreclosure process in Utah never happened. A foreclosed home is when the mortgage company has already taken possession of the house.
We will go into more detail below about your options of a Home Equity Line of Credit (HELOC) based on your equity and not your credit score, a chapter 13 bankruptcy, a mortgage loan modification, a hard money loan based on your equity, and a sell-lease back/rent back/buy back option. So lets get to the details of how to stay in my home after foreclosure.
Please call or text Gary at 801-382-9199 to discuss these options.
How to Stay in My House After Foreclosure
Get a HELOC based on your Equity
Often times a local credit union, such as MACU or America First in Utah, will extend a line of credit to you secured by the equity in your house. For this option, you will need to have 30% to 40% or more equity in your home and stable income. You will get great rates and only have to pay interest on the loan for several years.
A Chapter 13 Bankruptcy
This can be a great way to keep your house. Typically, a CH 13 BK will restructure your debt which includes giving you 3 to 5 years to pay off the amount of the house payments you are behind on and possibly reducing or eliminating some or all of you unsecured debt.
Bankruptcy should be considered a strategy to keep your home, and not a strategy to just stop foreclosure and sell your house in a few months. Here are a few things to be cautions about when using bankruptcy to stop foreclosure:
- If you are late at all with your mortgage payment or your bankruptcy payment, your mortgage company will ask the court for a “relief from stay”. This means your foreclosure starts up from where it left off when you filed your bankruptcy. Your house is no longer protected from bankruptcy.
- Once you and your property are in a bankruptcy, you need permission from the trustee of the bankruptcy to sell your house even if the mortgage company got a relief from stay. This can take 6 weeks which may not give you enough time if the foreclosure process is almost done.
- If you have a judgement against your property on a debt that was dismissed in the bankruptcy, the judgement does not go away for at least 7 years.
Mortgage Loan Modification
Modifications are designed to help people change the terms of their loans to make their homes more affordable. The Federal Government created HARP which is now expired to help homeowners with affordable house payments. This means mortgage companies are under no Federal mandate to modify any mortgage holder’s mortgage mostly because most homes have equity.
In 2020, many people found them self behind in their house payments because of Covid-19. At some point in 2021 or 2022, these back payments will become due. As of this writing, it is unclear if mortgage companies will modify some of these forbearance agreements.
Hard Money Loans
This is an option if you don’t qualify for a HELOC through your credit union. This is where a private individual will give you a 2nd mortgage on your home if you have equity. The interest rate will be higher than a credit union and typically a balloon payment will be due in 5 years.
Sell-lease back/Rent back/Buy back
This is where you sell your home to an investor and rent the house back from the investor, or you have an option to buy the house back in 3 to 5 years for a set amount. We are happy to see if you qualify for this plan.
How To Stay In My House After
Foreclosure In Utah
As you can see there are options to keep or stay in your house during the foreclosure process. We are always eager to help with no obligation. Each option we have discussed on how to stay in your house during a foreclosure will be impacted by your ability to follow through with your plan. We are here for you with no obligation to discuss all of your options.
We ❤️ your questions so please call or text Gary at 801-382-9199
or use the form 👇 for email.