Understanding Your Options When Facing A Potential Foreclosure | Is Selling An Option?
There is no getting around the fact that facing a foreclosure on your home is not a healthy financial situation. In addition to being forced to vacate your home, you will also face significant damage to your credit. Not only will your credit score plummet, but it will also be more challenging for you to purchase another home down the road. One way to avoid a foreclosure is to sell your distressed home in a timely manner. Here is what you need to know to do so.
Understand Your Options: A foreclosure usually remains on your credit report for up to seven years. Filing for Chapter 7 bankruptcy may accelerate this process. It will take at least two years for the foreclosure to begin to repair itself.
This will make it extremely challenging to qualify for any type of loan or credit card during this time period. Understanding your options to avoid the dreaded foreclosure will put you in a better position to avoid this significant downgrade to your credit.
Take Action Before the Lender: The last thing that you want to do is to ignore the problem hoping that it will go away. Rather than waiting to see what happens, it is better to be proactive and take action before the lender does. This means that you need to locate the right buyer as soon as you know that foreclosure is inevitable. A professional realtor will be able to put you in touch with qualified buyers.
Consider a Short Sale: If your lender is on board, you may be able to avoid foreclosure by arranging for a short sale. This process will help you to get out of the house quickly without as much damage to your credit. This is generally a good idea if you live in a booming house market where homes are in short supply. Be sure to look for a vendor who claims that buy homes, such as someone like Megg Home in Polk County. If you are able to sell your house for cash, you will boost the chances that you walk away from the home with some money in your pocket and without dinged credit.
Be Alert for Foreclosure Scams: It is easy to feel vulnerable when you are put into this difficult financial situation. This makes you more likely to fall prey to foreclosure scams. It is vital that you are always alert for scam artists looking to take advantage of your situation. Do not trust any offer that seems to be too good to be true. Approach every decision with great caution so that you do not fall victim to those looking to scam you.
You will feel empowered to make the best decision for your financial peace of mind if you understand all of your options to avoid the foreclosure of your distressed home.