Ways To Prevent Foreclosure In Houston
Nakul Kongovi | February 13th, 2017
In the recent years, thousands of people have lost their homes to foreclosure in Houston. Foreclosure is when you don’t pay back your mortgage loan and the bank begins the process of acquiring the ownership of your property to compensate its loss.
If you are stuck in such a situation, the key is to act quick. Selling your home, making negotiations, or whatever alternative you choose, you need to do it fast. It not only saves your home but also will help protect your credit rating.
Sell Your Property/ Pay Your Mortgage
One of the easiest foreclosure prevention methods is, paying off your mortgage. In fact this is something which you should do to avoid getting into a foreclosure. But it is not possible, for some reason or the other, every time. Even then, try and avoid getting into a foreclosure by paying off your mortgage, or even by selling your home.
All you have to do is sell your property and then use that money to pay off you your outstanding mortgage with the bank. This not only helps in getting the bank of your back, but also keeps foreclosure in Houston from affecting your credit score.
As an average mortgage these day contain a on sale” clause by which a borrower has to agree to pay off the entire loan if and when they transfer the property. On the other hand, when facing a foreclosure in Houston, you can persuade your lender and ask him to modify the loan, make sure that the clause is completely removed or deleted, allowing a new buyer to assume your loan.
Even though the lender might want to go through the buyer’s qualification for a proper assessment, it is something which you should not worry about. And if you are lucky enough, you might even get to negotiate a down payment from the buyer, which can be used to pay off your mortgage amount.
Hand Over The Deed
When selling a home in foreclosure, if no one is interested to offer cash for your house, you can ask your lender to take the deed and in turn cancel your debt. Known as a “deed in lieu of foreclosure”, the basic idea is that your bank can sell your house without reporting it as a foreclosure for all the credit rating agencies.
File For A Bankruptcy
Bankruptcy is something which freezes a foreclosure right in its tracks. More of a foreclosure prevention method, filing for bankruptcy can help you keep your home, or in the worst possible case, at least get you out from mortgage. Once you file for bankruptcy, the foreclosure process stops, and it can’t be reopened until the case on bankruptcy closes, or the lender/bank gets court order to proceed.
Foreclosures can cause a lot of problems if you don’t know how to handle it the right way. Consider the above options to narrow down on the right way to handle your mortgages and foreclosure. On the other hand, if you just want to put everything behind and move on with your life, your best option would be to sell your house and pay off your mortgage with the money you get. Sell your house with us and get quick cash in return.
At Realty Simplified LLC, we buy houses under any condition. Foreclosure, divorce or under probate, you don’t have to worry. Call us or drop a mail to know more about how to sell your your house fast Houston.