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Facing foreclosure can be devastating to a family. While losing your house is probably inevitable, avoiding the emotional and financial drain of a bankruptcy auction is possible. We want you to understand the available options you can take to get out of pre-foreclosure or foreclosure. You will be much better off maintaining as much control as possible.
The alternatives available to prevent foreclosure are: Chapter 13 bankruptcy filing, deed in lieu of foreclosure, and selling your home before foreclosure auction.
If you’ve avoided dealing with a mortgage foreclosure, it is in your best interest to take action immediately using one of these solutions. Even if the foreclosure sale of your condo or house is impending, the sale can be stopped.
To stop a home foreclosure process once it has started is not as impossible as it sounds. Filing a Chapter 13 bankruptcy will immediately stop the foreclosure sale date. You then will have a short period during which you can try to work out a repayment plan for your property with the mortgage company.
You can also sign over the deed to your property to the bank in exchange for their release of the home’s mortgage. This deed in lieu of foreclosure is usually acceptable to a lender as long as no second mortgage is recorded. But the potential liability of a second mortgage could cause them to refuse a deed in lieu.
A quick sale without a realtor is another alternative. But you must sell to a willing buyer before the foreclosure auction. After you find a willing buyer, you must get the lender’s approval for the sale. If they accept an offer that is less than what you owe, they may also release you from the rest of the debt. Such sale is called a short sale.
If you decide you need to sell your home, Los Angeles Cash House Buyer has been helping homeowners in your situation for years. In the Los Angeles, California area, we are the trusted real estate investors. Our experience will help you get through the complicated process of dealing with a foreclosure.
We are known as quick sale home buyers for a good reason. Other investors can seem like they take forever to complete a deal. But we complete most sales within a couple of months, which is a short time for a sale in a pre-foreclosure situation.
We buy short sales and regular homes with our cash—not somebody else’s. We don’t have to make an offer on your property, and then try to figure out a way to pay for it.
You know ahead of time just what you can take to the bank to settle your debt. You are not going to owe in realtor commissions or closing costs. And you won’t get stuck with any hidden fees.
After the bank accepts our offer, the condition of the property is no longer your problem. We buy houses AS IS. And that includes any title problems as well as any problems with the building itself.
You may have a few documents to sign and date. But after the lender reviews and accepts our cash offer, we take care of all the rest of the paperwork.
If your house is in default and you have no idea what you should do, contact us immediately. One of our experienced investors will make a fair cash offer for your house. They will negotiate with the lender and take care of all the necessary paperwork.
A short sale has fewer consequences to your credit than does an auction. A short sale has no real downside. And surprisingly, you may be able to get some short sale assistance from the lender to help you with relocation expenses, because a short sale costs the bank less money than dealing with a foreclosure auction.
While losing your home is never favorable, losing it through a short sale is better than through a foreclosure. You will come out of the ordeal with better credit (in many instances you can immediately buy another home). And you won’t necessarily have to list a short sale on future loan applications, as you do with a foreclosure.
I received a foreclosure notice of default. What to do now?
When you find a notice of intent to foreclose on your front door, take action. Take action immediately, because you will be served with foreclosure papers soon after. Give us a call, and we will make a cash offer for your house that you can take to the bank. Even at the last minute, we can help you avoid foreclosure.
In California, after the first missed mortgage payment, your house can stay in pre-foreclosure for 120 days. After you are behind on the mortgage for 120 days, you will receive a notice of default—followed by a notice of a trustee sale 60 days later. In no less than 20 additional days, your home will be sold at auction.
After the foreclosure auction, the new owners are responsible for any necessary eviction. You will have three days to vacate the property before further action is taken. If you refuse to leave, the new owners must file an eviction lawsuit which usually takes from 30 to 60 days to complete. (You could be offered cash instead to move out quickly.)