Any financial setback, such as sudden medical expenses, losing a job, or divorce, can have an impact on your ability to pay your mortgage. If you miss a payment, you could be facing foreclosure. You should understand the process and learn what you can do to avoid foreclosure.
When Foreclosure Happens
When you miss a payment, you are technically in default of your mortgage loan. In that case, you should talk with someone at the mortgage company about your options. They may work with you.
But if you receive a warning notice of foreclosure, your time is limited. Typically, you will be given 120 days—about four months—to settle your debt. If you can’t pay up, your lender will seize your home and you will be evicted.
How Foreclosure Hurts You
If you experience foreclosure, you’ll be required to leave your home with only your personal possessions. Your house will be auctioned off, and the lender will get the proceeds. If you had any equity in your home, you may get very little of it (if any) depending on how much you owe.
A foreclosure on your credit report can hurt you for many years to come. Your credit score will plummet, and you may not be able to get a loan of any kind. It can affect your ability to rent, also.
How a Quick Home Sale Can Help
That 120-day window is your chance to avoid foreclosure and its consequences, but you have to act quickly. A traditional home sale—listing your home on the market and waiting for an offer—could take several months. Even after an offer, it could be another 6 weeks to two months before closing.
That’s where selling your home to a cash buying company can help. You can have a cash offer within 24 hours and close on your home in less than 30 days. You can sell your home, settle with your mortgage company, and be free to move on.
In tough times, a foreclosure will add more stress to your financial worries. You should do whatever you can to avoid foreclosure, and that often means selling your home. If speed is what you need, a quick cash home sale might be the right choice for you.
You can avoid foreclosure with a quick cash sale. If you’re in the Spokane area, click here to learn more about the cash sale process!