There are some things that are more devastating to families than the event of foreclosure looming over their shoulders. But for some, losing their home due to unfortunate circumstances may just seem imminent as their forthcoming reality. Fortunately, there are many ways that can help you avoid foreclosure in Kansas City — perhaps more options than you realize.
These are legal foreclosure avoidance strategies that you can implement to help you resolve your foreclosure concerns so you can get on with your life.
In this blog post, you’ll read about 3 ways that can help you avoid foreclosure in Kansas City (yes, there are other ways to avoid foreclosure as well). The goal of these strategies is to help you legally and ethically avoid foreclosure to reduce the pain and frustration that you’re facing while minimizing any long-term financial commitment or burden. Not all of these strategies will apply in every situation but you’ll probably be able to find at least one of the three ways that will work for you.
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.
Contrary to popular belief, lenders don’t want to foreclose! They want happy customers who pay their mortgages, so lenders are often willing to work with homeowners to figure out a deal. This might include a temporary reprieve on your mortgage payments, or it might include a catch-up strategy where your outstanding mortgage payments are spread out so you can catch-up and pay them off, or it might include a restructuring of the outstanding amounts that you owe.
It’s always good to actively keep in touch with your bank.
Strategy #2. File for Bankruptcy
Filing for bankruptcy may seem like an extreme measure but it is one of the “tools” in your foreclosure avoidance tool belt. When you file for bankruptcy, you indicate to all of your creditors that you are no longer able to pay your bills. Filing for bankruptcy will put a stop to the foreclosure process because all creditors must stop the collection process.
Filing for bankruptcy, though, is a little extreme: it may require you to sell off some of your assets in order to pay off your creditors and a bankruptcy will remain on your credit score for many years. That could impact everything from getting a loan on a car or even getting a job, so this shouldn’t be your first line of defense!
Strategy #3. Short Sale help to avoid foreclosure in Kansas City
A short sale is the third strategy — this is where you sell your house fast in Kansas City and put the proceeds of the sale toward the amount owed on your mortgage loan. A short sale is a preferred method for people facing foreclosure because it is proactive, fast, and very effective.
This approach also avoids a damaging foreclosure filing on your credit report.Jon McNamara
- It’s proactive, which means that you take matters into your own hands (that’s a major stress eliminator because so much of the stress of foreclosure comes from the process being completely out of your control).
- It’s fast — in some cases, you can sell your home in as little as a week! That’s also because it’s local: You can get help for foreclosure in Kansas City since organizations like KC Property Connection help people going through short sales.
- It’s very effective because a short sale can completely wipe out (or almost wipe out) the amount owing on your mortgage. If there is any amount left over that is not covered by the sale of the property, you’ll be responsible for it (although you can sometimes work out a deal with your lender).
With a short sale, you still end up with the reality of having to leave your home but there is a bright side: The impact to your credit is much less (compared to a bankruptcy or a foreclosure) so this is a smart long-term play to give yourself some options.
- An involuntary action initiated by the lender when the borrower defaults.
- A foreclosure process takes time or buys time to seek out all other options on the loan.
- Stressful, emotionally tasking.
- Affects a borrower’s credit score.
- A voluntary action to get out of paying a mortgage with permission from the lender.
- Gives a borrower an opportunity to buy another home.
- Does not affect a borrower’s credit score.
For local Kansas City families facing foreclosure, the stress can be almost unbearable. Worse yet, the foreclosure process can take months or even years, stretching out the battle far longer than anyone wants it to last.
If you find that you’d love to sell your house fast in Kansas City to get out from under your foreclosure, we’d be more than ready to assess your property’s situation without the whole lender red-tape. We buy houses for cash and always aim for a smooth and easy transaction for all our clients because we know how draining these times can get.