The threat of foreclosure is one of the most heartbreaking events that may occur in a family’s life. You own your home and enjoy it; it is functional. However, foreclosure may appear imminent owing to unforeseen reasons.
The stress of local Ohio families facing foreclosure might be nearly intolerable. Worse, the foreclosure process can take months or even years, prolonging the suffering beyond anyone’s desire.
Fortunately, you have options here in Ohio – possibly more than you think. There are various foreclosure prevention tactics available in [market city]; these are legal foreclosure avoidance strategies that you can use to help you address your foreclosure problem and move on with your life.
You’ll learn about three techniques to avoid foreclosure in this blog post (there are other ways to avoid foreclosure as well). The purpose of these solutions is to help you avoid foreclosure legally and morally, decreasing the anguish and aggravation you’re experiencing while limiting any long-term financial commitment or strain. Although not all of these tactics will work in every case, you’ll most likely be able to identify at least one of the three that works.
Strategy #1: Work out a deal with your lender
The first strategy is called a “foreclosure workout”. In a foreclosure workout, you’ll sit down with your lender and tell them that you don’t think you can pay your current mortgage obligation but you’d like to figure something out so you can stay in your house and continue to pay your mortgage.
Lenders do not desire to foreclose, contrary to popular opinion. Lenders typically cooperate with homeowners to find a solution because they want satisfied customers who pay their mortgages. This could involve a short suspension of your mortgage payments, a catch-up approach in which your outstanding mortgage payments are spaced out so you can catch up and pay them off, or a reorganization of the outstanding amounts you owe.
Strategy #2. Bankruptcy
Although declaring bankruptcy may appear to be a drastic action, it is one of the “weapons” in your arsenal of foreclosure-avoidance options. When you file for bankruptcy, you’re telling your creditors that you can’t pay your bills any longer. Because all creditors must stop the collecting operation, filing for bankruptcy will put an end to the foreclosure process.
However, declaring bankruptcy is a drastic measure that may require you to liquidate some of your possessions to pay your creditors. A bankruptcy will also stay on your credit report for a long time, affecting everything from receiving a loan to getting a car… even getting a job. This isn’t the first line of defense, so be cautious!
Strategy #3. Short sale help for a foreclosure in Cleveland
The third option is to sell your home and apply the revenues to the outstanding balance on your mortgage debt. Short sales are favored by persons facing foreclosure because they are proactive, quick, and very effective.
- It’s proactive, which means you take control of the situation (a significant stress reliever because so much of the stress of foreclosure stems from the fact that you have no control over the process).
- It’s quick – you can sell your property in as little as a week in some situations! That’s also because it’s local: In [market city], groups like [business] assist people going through short sales.
- It’s incredibly effective since a short sale can totally (or almost completely) eliminate your mortgage debt. You’ll be accountable for any money left over after the property is sold if it isn’t covered by the proceeds (although you can sometimes work out a deal with your lender).
You will still have to leave your property if you go through a short sale, but there is a benefit: the damage on your credit will be significantly smaller (compared to bankruptcy or foreclosure), so this is a great long-term strategy to offer yourself some options.