The quick answer is yes! You have options to avoid a foreclosure in Huntsville.
The word by itself can stir up a very upsetting and frightening sensation when you begin considering what all it can mean — a long struggle, ending up broke and/or unemployable, and, in worst cases, even homeless.
Thankfully, there are other possibilities if you’re having a hard time to make your mortgage payments on schedule. And, even if your Huntsville home has already entered into the foreclosure process, you can still come out of it on top. The very first solution is to lower your stress as much as possible by trying a short sale. This means you will sell your Huntsville home and the bank will take the money you get on the sale.
Here’s How You Can Avoid a Foreclosure in Huntsville:
Step 1 on How To Avoid a Foreclosure in Huntsville
First, see to it that you comprehend the notion of a short sale. Your Huntsville house will need to sell for enough money to pay for the mortgage balance. If what you earn isn’t equivalent to the loan amount, you will need to generate the disparity yourself. So, be sure that your home will sell for enough to take care of the balance.
Step 2 on How To Avoid a Foreclosure in Huntsville
Secondly, you must get approval from your loan provider before seeking a short sale on your Huntsville house. If you still are not in default, they’ll be much more open to deal with you. You can seek authorization more than one time in the case that you are declined the first time. If the loan provider forecloses and the property goes into auction, the top bidder will own the property regardless of how low their bid was — so a short sale could be an appealing option for your mortgage company. That being said, you will need to show an authorization letter, hardship letter, statement of the property’s valuation, a purchase offer/contract, and a settlement statement.
Step 3 on How To Avoid a Foreclosure in Huntsville
Thirdly, once you have been granted authorization, you will need to begin looking for a realtor and an attorney who concentrates in home sales in Huntsville. With these pros on your side, you have a significantly greater probability of succeeding and getting out of your house with no harm to your financial record. Now and then, you’ll have the ability to pay them with the earnings from the property’s sell.
Step 4 on How To Avoid a Foreclosure in Huntsville
Finally, you will need to set a list price for your Huntsville house that is equal to or more than your loan balance and any selling expenses, like the cost of your real estate agent. If your asking price is lower than what you need, you will need to begin figuring out how to cover the difference.
Pros and Cons of a Short Sale on Your Huntsville House
The short sale method does not give you any profit, which is its greatest con. On the other hand, bear in mind that you will in no way profit from a foreclosure, either, and you’d in fact walk away with a damaged credit score and possibly in a more stressful financial circumstance. That’s because having a foreclosure on your report indicates that it will be harder to rent or buy a home — in Huntsville or elsewhere. Moreover, lending institutions sometimes might insist that you pay them using some of the assets you have revealed to them if the short sale doesn’t cover the Huntsville home, meaning you will need a great attorney with you.
The majority of lenders see short sales as a favorable alternative to foreclosing, which means you will be able to walk away (in most situations) without a foreclosure on your report.
The good news is you have options to avoid foreclosure in Huntsville. If you want to talk about your situation to see if we can help — we can buy houses before or during the foreclosure process. Give us a call at 423-375-8575 or fill out our form below…
