Making a short sale and getting cash for your house prevents a foreclosure from affecting your credit score. At Liberty House Buying Group, we buy houses in Orlando FL, to prevent families from going through foreclosure.
Local FL homeowners facing financial challenges may find themselves in foreclosure or searching “Sell My House Fast In Orlando FL” on Google.
Foreclosure is when the mortgage loan you took doesn’t get paid back, and as a result the bank begins the process of taking ownership of the property in order to recoup its losses.
If you find yourself entering the foreclosure process, you will probably ask yourself if there is anything you can do about it.
In this blog post, we will share with you a few foreclosure prevention measures in Orlando that you can use to keep your home from going into foreclosure.
Foreclosure prevention measures in Orlando FL
Although not all of these foreclosure prevention measures may be effective in your case, we’re letting you know about them so you may decide for yourself:
1. Pay off your mortgage / sell your property. Paying off your mortgage is the fastest and simplest option to stop the foreclosure process. After all, this is all the banks wanted in the first place, so they would be happy to let you stay in your home and get their money back. Admittedly, this is not always possible, which is the reason that you’re in foreclosure in the first place.
2. Work out a deal with your bank. Sometimes you may negotiate a deal with your bank in which you meet with a mortgage or foreclosure specialist and discuss modifying the terms of your loan. For example, you could stretch out your payments so they are lower each month. Just make sure that the deal works for you — you don’t want to repeat the process.
3. Do a short sale. A short sale is when you sell the property and use the proceeds of the sale to pay down or pay off your outstanding amount with the bank. This avoids the negative effects of a foreclosure on your credit score and gets the bank off your back! It would help to know how to sell your home fast in Orlando, FL.
4. Give your deed in lieu. Another option is to give the bank the deed to your home in exchange for them agreeing not to proceed with foreclosure. This is known as a deed-in-lieu-of-foreclosure. This will often only work if your house is worth approximately the amount owing on the mortgage. If not, the bank may pursue the difference. Can you get your house in Orlando back after foreclosure? Click on the link to find out.
5. File for bankruptcy. In some ways, bankruptcy is far more dramatic than a foreclosure because it impacts your whole life. However, once you file for bankruptcy, the foreclosure process has to stop, so it’s still a foreclosure prevention measure.
If you’re unsure which one to do, consider this: If you can afford payments and want to stay in the house, then a foreclosure workout arrangement (#2) is probably your best option.
If you want to put everything behind you and go on with your life, then consider selling your home and paying off your mortgage with that money. This option will help for foreclosure in Orlando.