People fall behind on their mortgages every day. In our latest post, we can help you learn how to stop the bank from foreclosing on your New Orleans house!
Foreclosure is a frustrating process and difficult for anyone to handle. It’s important to remember that this happens all the time and you are not alone. If you still possess your house, there are some things you can do to stop the banks. But first…
Why Do Banks Foreclose?
Banks foreclose after multiple missed payments. It can happen to the best for all sorts of reasons. Common causes of missed payments include divorce, job loss, the death of a loved one, family addition, and sudden illness. The last thing people need in any of these situations is to lose their house. If you are unable to pay what you owe, the bank will foreclose on the property and resell at auction in an attempt to recover their money.
What You Can Do To Stop It
Find A Buyer… Quickly
The foreclosure process will stop when you sell your house. If you sell on your own to a buyer using financing, it could take weeks or months to close. By then, the bank may have already foreclosed. With a direct sale to Louisiana Direct Home Buyers, you will generally be able to sell in a few short days for a fair and honest price.
If you owe more than the house is worth, this could be a good option for you. A short sale occurs when a homeowner and the bank agree to sell the house for less than what is owed. If the house has dropped in value and the homeowners can’t make payments, the bank will agree. They would rather recover most of what is owed instead of foreclosing on the property. A short sale looks much better on your credit than a foreclosure does.
Work Out A Deal
Give the bank a call as soon as you realize that payments are becoming a challenge. Inquire about a loan modification or changing the terms of your loan. You may be able to refinance and lower your payments. If you have missed a few payments, try to set up a payment plan to get back on track. Some lenders will agree to forbearance, forgiving the missed payment and adding it to the end of your loan term. Before doing anything drastic, talk to the bank. They are used to these situations and will likely have a solution.
File For Bankruptcy
If you file for bankruptcy, the lenders cannot collect payment until the court allows it. Make sure you choose the right type for your needs, Chapter 7 or Chapter 13, and that you have talked this through with an attorney. Filing for bankruptcy can have negative effects on you and your credit for years to come.
Do you need to sell your New Orleans house before the bank forecloses? We can help! Send us a message or give us a call today! (504) 224-9066