Local Texas homeowners who are facing a financial challenge may find themselves in foreclosure.
Foreclosure is when the mortgage loan doesn’t get paid back and the bank begins the process to take ownership of the property to recoup its losses.
If you find yourself entering the foreclosure process, you might wonder if there is anything you can do about it.
In this blog post, you’ll read about some of the foreclosure prevention measures in San Antonio that you can take to keep your home from foreclosure.
Foreclosure prevention measures in San Antonio Texas
These foreclosure prevention measures might not all work in your situation but we’re telling you about them so you can make the decision for yourself:
1. Pay off your mortgage / sell your property. The quickest and easiest way to end the foreclosure process is to pay off your mortgage. After all, this is all the banks wanted in the first place so they would be happy to let you stay in your home if they can get all their money back. Admittedly, this is not always possible, which is perhaps the reason that you’re in foreclosure in the first place. And depending on your timeline you may be in a situation where you would need to sell fast in order to stop the foreclosure.
2. Work out a deal with your bank. Sometimes you can work out a deal with your bank where you sit down with a mortgage or foreclosure specialist and talk to them about changing the structure of your mortgage. Perhaps your payments get spread out so they are lower each month, for example. There are many banks that will try to work with you, just make sure that the deal works for you — you don’t want to just repeat the process again in a few months.
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. You will still be selling your home, but this keeps a foreclosure from impacting your credit score and it gets the bank off your back! Short sales can take a long time and will not work in every situation.
4. Give your deed in lieu. Another option would be a deed-in-lieu-of-foreclosure, which basically means that you will hand over the deed to your house to the bank and they agree not to put you through 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.
5. File for bankruptcy. In some ways, a 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. This can be a complex process and you probably need the help of a professional who has a lot of experience with bankruptcies.
If you’re not sure which one to do, consider this: If you can afford payments and you 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 move on with your life then consider selling your home and paying off your mortgage with that money. If you are running short on time there are different we buy houses companies that can offer you cash for your house. Just make sure that you are dealing with an experienced company that can follow through with their promises.
Considering selling your Texas house?
We buy houses in TX for cash and would love to see if we can help you during your short sale. Contact us by filling out the form on this page and we’ll see if we can work with you.