Foreclosure is no fun. Sometimes, life happens and you may face foreclosure. It is hard to deal with this, but there’s hope.
Foreclosure process in VA will put strain on you and your family. The proceedings can take months and it is anything but pleasant. The pain will stretch for a while and we know it will not be easy, but read on…
Fortunately for you, there are some ways to help you avoid it. Yes, you’ve got options for dealing with foreclosure in Newport News. These are fully legal ways to get help and avoid getting into the pain of dealing with foreclosure so you can get on with your life and concentrate on making things better for you and your family.
We will present you with 3 ways to avoid foreclosure. This is not an exhaustive list of options. These are 100% legal and ethical and have proven to work before to help others in the same situation as you avoid foreclosure and limit the frustration of this process. The goal is to take proactive steps in mitigating the risk and working things out before it becomes harder for you. Not all strategies will work for you, but you owe it to yourself to try and make things better.
Strategy #1: Work out a deal with your lender!
The first strategy is called a “foreclosure workout”. In a foreclosure workout, you’ll sit down with your lender and tell them that you don’t think you can pay your current mortgage obligation but you’d like to figure something out so you can stay in your house and continue to pay your mortgage.
We are calling the first option “foreclosure workout”, where you would actually contact your lender and ask for acceptible ways to work this out and put you on a path to success. The goal is to make you current on your mortgage.
In case you are doubting this, let’s get this record straight – lenders do NOT want you to go into foreclosure. They would prefer that you keep your home and continue to make payments. The strategy includes you asking for temporary reprieve on your mortgage payment and coming up with some type of a catch up strategy, usually some type of a doable payment plan for you. This may also include some temporary or permanent restructuring of your payments/plan for the outstanding amounts you owe.
Strategy #2. Bankruptcy
If you file for bankruptcy, your lender will get off your back, because they must stop the collection process. In fact, all of your current creditors will stop asking you for payment. That is the “magic” of declaring bankruptcy. In essence, when you do that, you are declaring officially to all banks and other creditors that you are basically unable to make any payments.
Of course, we need to also warn you upfront: filing for bankruptcy will indeed stop your foreclosure, but it will also damage your credit for years, which will make it hard for you to get a rental home/apartment, another house, car, or even a job… so this should never be your first choice. We would recommend this to be your last option!
Strategy #3. Short sale help for a foreclosure in Newport News
A short sale is the third strategy — this is where you sell your home and put the proceeds of the sale toward the amount owing on your mortgage loan. A short sale is a preferred method for people facing foreclosure because it is proactive, fast, and very effective.
You can do a short sale – to sell your house for a lower than expected amount, but if the lender agrees, this would be a good option, because it is fast, proactive, and effective too! All the proceeds will go towards the loan. Sorry, you wouldn’t get to keep any of that money…
- It’s proactive, meaning you are taking steps to talk to the lender proactively and if you both agree on the process and the amount, the house can be sold for a lower amount, as long as the lender would agree to take that money and satisfy the loan. Yes, you would still lose the house, but your credit should be Ok.
- It’s fast — you can close in a week or two! You can get help for foreclosure in Newport News since organizations like Coastal Edge Homebuyers help customers like you going through the same process.
- It’s very effective – the bank may even agree to take the short sale proceeds and completely satisfy the loan amount owed, but, in some cases, they may ask for a little more (difference) for which you will be responsible.
Please note, if you actually work out a regular sale to a cash investor like us, you will not have to worry about a short sale or a bankruptcy. Depending on what you owe to the bank, we may be able to offer you exactly what you owe (or in some cases maybe even a little extra for you, if your loan balance is low enough). And get this – your credit will be saved! Call us today so you can learn about your options and how we can help you!