Category: Summary

When you default on your mortgage it is very likely that your credit will take a huge hit. In order to be financially safe and sane you will need to plan in advance once this happens. You’ll have to save up money and make sure your rent is low enough that you can afford to put down a down payment. You will be able to get back on your feet but you will have to do the work to avoid further hardship.

Key Takeaways:

• If you are overwhelmed you can default on paying your mortgage, but it comes with downsides.
• For example, your credit score is guaranteed to go down significantly.
• In the future it will be more difficult for you to purchase a house and you will need to save extra cash.

“The Mortgage Forgiveness Debt Relief Act of 2007 was enacted to allow homeowners who lost their homes through short sales or foreclosures to escape a major tax penalty for mortgage debt that was forgiven.”

Read more: https://smartasset.com/mortgage/what-really-happens-if-you-default-on-a-mortgage

Due to financial issues and obscene interest rates, many people want to sell their home even though their mortgage may be worth more than their house’s value. Fortunately, there are options available for homeowners in this type of situation, like refinancing the mortgage or working with the bank to modify the loan. Also, it’s possible to seek out a short sale to recoup as much money as possible. If all else fails, homeowners can simply accept the foreclosure process, although it is a major hit to their credit.

Key Takeaways:

• when your home is worth less than you owe on it you have a number of options including stay and pay since the home may have emotional value or you are worried about your credit
• If you owe more than a home is worth an option is to refinance the mortgage or get a loan modification with a lower interest rate or longer payment period to reduce the payments.
• If you do not want to keep the home you can attempt a short sale if the lender agrees to the sale or simply abandon the property and suffer the loss

“When the housing bubble popped in 2007-2008, millions of homeowners ended up with homes that are worth less than they owe on them.”

Read more: https://www.credit.com/blog/underwater-on-your-home-your-six-options-34794/

If you are struggling to make payments on your mortgage due to the devastating financial impact of the COVID-19 pandemic, it may be time to consider selling your home. Unfortunately, the selling process could take time and many real estate agents use predatory tactics to take a large chunk of the sale. Instead of putting your house on the market, it may be best to sell it to an investor. You probably won’t get the full price you are asking for, but they will be able to get your house sold quickly. Finally, it’s important to choose the right investor who operates fairly and treats you with the respect you deserve.

Key Takeaways:

• You can consider selling your home to an investor to avoid losses.
• You may take losses from selling your home but if you are foreclosed on then you won’t be able to buy another home.
• You want to find an investor in Utah who is fair to your situation and is respectable about the hardships you face.

“Are you in a situation where things have gotten a little crazy? You are not alone. With the Covid-19 pandemic hitting, jobs can be hard to find and keep. Your biggest asset is your home, but now that is in jeopardy.”

Read more: https://theutahrealestateblog.com/Save-Your-Home-from-Foreclosure/

Selling your home through the traditional route comes with many issues. Not only can it lead to stress, but much of the time the cost of repairs don’t pan out and cause a net financial loss. Also, if you are living in the home while trying to sell it, buyers may be wary of how long the move-out process may take. Finally, instead of putting your house on the market, you may want to look into other options like a short-sale to an investment firm that will yield an immediate cash offer.

Key Takeaways:

• The traditional way of selling your home can be complex and aggravating since sellers tend to make false assumptions.
• Living in your home while trying to sell it can be difficult since potential buyers may think the process will take longer.
• Instead of putting your house on the market, you may want to look at directly selling to an investor to get a quick, hassle-free cash offer.

“Most sellers only earn back 60% to 70% of what they spend on home repairs or renovations. Repairing your home just to sell it could mean losing a great deal of money. It’s unlikely the market will bear any attempt to tack repairs onto the asking price of your home. Remember, those prices are impacted by your neighborhood, the current market, and your home’s sale price history.”

Read more: https://www.iwillbuyhouse.com/blog/5-common-challenges-when-selling-your-home-the-traditional-way/

For those in financial hardship, paying your mortgage can be a stressful process. It’s important to educate yourself about your mortgage in order to alleviate some of this mental burden. If you are making delinquent payments, there are options available like loan modification or refinancing. To avoid disclosure, you may think of selling your home, going through the forbearance process, or even declaring bankruptcy. Finally, it’s always important to be upfront with your lender so you can form a positive relationship and work on these issues together.

Key Takeaways:

• If you have a ybrid ARM or an ARM mortgage where the payments increase over time, try to refinance to a fixed-rate mortgage if you think making the payments will be hard.
• Under certain circumstances the Making Home Affordable Modification Program (HAMP) makes it possible to get a loan modification.
• Contact your loan servicer to try to prevent house foreclosure. If you can’t make it work then consider selling your home to avoid this process.

“If you are having trouble making your payments, contact your loan servicer to discuss your options as early as you can. The longer you wait to call, the fewer options you will have.”

Read more: https://www.consumer.ftc.gov/articles/0187-when-paying-mortgage-struggle

Many homeowners with a mortgage that is more than their house’s value tend to walk away from their debt, but the hidden financial costs of this process may be severe. Instead of going through a strategic foreclosure with the bank, you could wait out the process hoping that the market will change in the future or ask for a principal reduction. Other options include short selling your home, refinancing, modifying the mortgage terms, or utilizing a deed-in-lieu of foreclosure. Finally, you’ll need to understand that this debt will hurt your credit score, hurt your chances at a future mortgage, and may have heavy tax implications.

Key Takeaways:

• A loan is underwater if the house is valued at less than the current amount owed on the mortgage.
• A strategic foreclosure is defaulting by doing the math and figuring out it is best to let the mortgage go.
• It’s possible to look for a loan modification or a principal reduction. When things are not save-able it can be best to short sale the home.

“Check your mortgage account online or look at a recent paper statement for the unpaid principal balance. This is the amount you still owe on the mortgage.”

Read more: https://www.bankrate.com/finance/mortgages/risks-of-walking-away-from-mortgage-debt-1.aspx

Purchasing a home after you’ve been foreclosed upon can be difficult because lenders may be apprehensive to provide you with a loan. Still, with hard work and knowledge, you can still buy a house even with a foreclosure on your record. You’ll first have to understand the waiting periods of the different types of loans so you can best choose the loan that works for you. Each lender also may have a specific set of requirements when lending to someone that has been foreclosed upon, so it’s best to understand those as well.

Key Takeaways:

• Most underwriters want to make sure that you have had good credit before your foreclosure and after your foreclosure before allowing you to get a loan.
• The typical waiting period after a foreclosure to get a conventional loan is about seven years and requires a down payment.
• The waiting period after a foreclosure for a USDA loan is only three years and does allow for extenuating circumstances as well.

“The lender is looking for proof the circumstances that caused the foreclosure are well behind you and are not likely to be repeated.”

Read more: https://mymortgageinsider.com/ask-tim/buying-house-after-foreclosure/

Selling your house can be an arduous and expensive process, especially if there are a lot of necessary repairs. Although to quickly sell your house in a month, there are a few things you can do to increase the value. Fast repairs like updating kitchen cabinets, painting walls, and cleaning can all help attract potential customers. The exterior could also be spruced up with a new roof or new windows. Finally, in order for your house to be market ready, it needs to be visually appealing and staged properly.

Key Takeaways:

• It’s possible to sell your house in less than a month even if it’s very ugly.
• You should focus on updating the house’s features, but be careful about the ones you choose.
• Read on to learn more about the expenses and what you’ll need to do to sell your house.

“When you have a hideous house you need to sell, usually the first step is to update your property.”

Read more: https://www.expresshomebuyers.com/how-to-sell-an-ugly-house-in-30-days-or-less/

Foreclosure can be a terrifying process but there are some steps you can take to slow it down and maintain your home. The first step is to fully understand the process of foreclosure through educating yourself on both your state and country requirements. Then, it’s best to call your lender and be honest about your financial situation, as most will try and accommodate you. Also, you can contact a housing counselor or think about a short sale to pay off your mortgage. If all else fails, it may be best to consider filing for bankruptcy.

Key Takeaways:

• Educate yourself and do research on foreclosures as it will allow you to be more prepared if you are facing the issues that come with foreclosure.
• Call your lender and try to find a solution such as refinancing or a loan modificaiton to help you continue paying.
• Consider filing for bankruptcy because although it will hurt your credit, it will prevent the foreclosure process from happening.

“There are things that you can do to slow down the process and get back on track or, at the very least, to leave your financial record in the best shape possible.”

Read more: https://www.forbes.com/sites/taramastroeni/2018/08/23/facing-foreclosure-here-are-5-things-you-can-do-to-slow-down-the-process/

There are many reasons why people sell their house for cash which include high medical bills, going through a divorce, or the house having damage that they can’t afford to prepare. If you would like to sell your house for cash, you’d first need to submit your information and request a quote. You will then receive a consultation where you will explain the condition of the house as well as why you want to sell. You’ll next receive an offer and if accepted you will need to have the home evaluated and verified by a real estate expert.

Key Takeaways:

• People will sell their home for cash if they need money for medical bills, if they’re facing foreclosure and/or if the house needs too many repairs.
• When selling your home for cash you will receive a cash offer and a real estate agent will explain the details of the offer and answer any questions you have.
• If the offer is accepted, a date will be set to evaluate the property and verify the condition of the home.

“After you’ve submitted your information and your property has been deemed eligible to receive a cash offer, you will then receive a consultation. A representative will contact you to discuss why you want to sell the home, the current condition of the property, and the best selling option for your specific situation.”

Read more: https://highestcashoffer.com/selling-your-house-for-cash/