People fall behind on their mortgages every day. In our latest post, we can help you learn how to stop the bank from foreclosing on your Salt Lake City Utah house!
Stop The Bank From Foreclosing On Your House
Foreclosure in Utah can be a difficult and frustrating process. Not only can you lose your house, but your credit will be in the worse possible shape if your house goes to the end of the foreclosure process. It can be difficult for anyone to handle and even be a little embarrassing. It does happen to people all the time though. You are not the first person going through it, and you certainly won’t be the last. The good news is, that if you are still in possession of your house, there are some things you can do to stop the banks. But first lets look at the foreclosure timeline in Utah, so you know where you stand.
In Utah the foreclosure process can start once a homeowner is 90 days late on their payments. Once a homeowner is 90 days late, the Mortgage holder will issue a Notice of Default. The notice of default is giving the homeowner another 90 day’s notice that the house will be sold at auction if the default is not cured. After 90 days from the Notice of Default date, a Foreclosure Sale Date will be issued. A Foreclosure Sale Date is giving you 3 week’s notice and the exact date your house will be sold at foreclosure auction. If the bank does things as fast as they can per the law, the process I just described will take about 7 months starting from your first missed house payment. The #1 advice we give if you recently got a notice of default, is to start your research to formulate a plan to meet your needs of keeping your house or selling your house. The worst outcome is to have your house auctioned off and lose all of your equity and have your credit trashed. We see this happen on a weekly basis.
What Effect Does Foreclosure Have on You?
It is Embarrassing and scary –
You will get a ton of mail, people may knock on your door and your phone will ring off the hook from investors, real estate agents and your mortgage company. The sooner you act, the faster these actions will stop.
Your Credit Gets Ruined –
The worst possible outcome on your credit in a foreclosure is for the house to actually get sold at foreclosure auction or taken back by the bank. There is always another option to keep or sell your house and to start on the road to recovery for your credit.
You Can Lose Your House –
Bankruptcy, Loan Modification or an investor like Gary Buys Houses can help you keep or sell your house.
You Can Lose the Equity in Your House –
Especially if the bank finishes the foreclosure process and takes your house back or someone at the auction buys the house. You have many options if you act quickly.
You are welcome to call 801-382-9199 with foreclosure questions any time or visit our Stop Foreclosure page now.
Why Do Banks Foreclose?
Banks foreclose after multiple missed payments. In Utah this is after at least 3 missed payments. This can happen to the very best people and for all sorts of reasons. Divorce, job loss, the death of a loved one, family addition, and sudden illness are all common causes of missed payments. The last thing people need in any of these situations is to lose their house on top of everything else they are going through. If you are not able to repay the bank what you own, the bank will foreclose on the property and resell at auction in an effort to recoup their money.
What You Can Do To Stop Foreclosure?
Find A Buyer… Quickly if you want to sell
When you sell your house, the foreclosure process will stop in its tracks. You can try to find a buyer who can close quickly on your own, or you can call a professional house buying company who will always pay you a fair and honest price for your Salt Lake City house. If you sell on your own or sell your house on the MLS to a buyer using financing, the sale could end up taking weeks or months to be finalized, and by then, the bank may have already foreclosed. With a direct house sale, you will typically be able to sell your house in only a few short days. And, at Gary Buys Houses, you probably qualify for our program to sell your house now, get your money now and move at a later date. Read more here about our program here.
Work Out A Deal or Loan Modification with your bank
When you first realize you are having difficulties making your mortgage payments on time, call your bank. They would rather work with you then deal with missed payments and foreclosure. Look into a loan modification which is changing the terms of your loan. You might be able to refinance and lower your payments. If you have missed a few payments, try to set up a payment plan to get back on track. Some lenders will agree to forbearance, forgiving the missed payment and adding it on to the end of your loan term. Before you do anything drastic, talk to the bank first. They are used to dealing with these situations and will likely have a solution to help you.
File For Chapter 13 Bankruptcy
If you file for bankruptcy, the lenders cannot attempt to collect payment until the court allows it. Make sure you choose the right type for your needs, Chapter 7 or Chapter 13, and that you have talked this through with an attorney. Filing for bankruptcy can have adverse effects on you and your credit for years to come. We think it is a good option to keep your house if you know you can afford the payments for the bankruptcy. It can end up costing you part of your equity in the long run if you fail at your payment plan a few times, so make sure you go over your finances in detail.
Negotiate a Short Sale
A short sale is when you own more on the house than the house is worth. A short sale happens when a homeowner and the bank agree to sell the house for less than what is owed. The bank will agree to this if the home has dropped in value and the homeowners aren’t able to make the payments. The bank would rather recoup the majority of what is owed instead of going through the long and lengthy foreclosure process. A short sale will usually look better on your credit than a foreclosure will.
All of these foreclosure solutions can help you keep your house or sell your house when you want to Stop The Bank From Foreclosing.
- At Gary Buys House, we can help you sell or stay in your house if you are in foreclosure in a private and discreet manor. We understand the situation you are in and strive to always be respectful of your situation.
- We can discuss with you how each option will affect your credit score.
- Sometimes people have to move because of foreclosure. A solid plan can get you more money or time or both.
- A realistic plan is essential if equity preservation is your #1 goal.