If foreclosure is looming over you like a black cloud on a sunny day, don’t ignore the rain. Open the letters your lender is sending you and see where you are at in the process. Make sure you find your mortgage documents and read them thoroughly to know what to expect when you don’t make your payments. If they have just begun to issue notices of non-payment, they haven’t issued the foreclosure yet. But if you ignore the pending legal action letters, that is no excuse in court. You may still have time to handle this situation if you want to know ways to avoid foreclosure in Kansas City and prevent it from appearing on your credit report.
If You Have Any of These Questions:
- How much time you have before the foreclosure
- Want to know ways to avoid foreclosure in Kansas City
- Not sure whether your property is on a mortgage or a deed of trust
- Don’t know what to do after receiving a Notice of Default
- Want to know your selling options
We work with both Kansas City area Real Estate Agents and Homeowners, we can help you see all the possible options available for you and make the process as smooth as can be. We know how foreclosure can take a toll on families, and we understand how being there and how having the right answers to the questions during this uncertain time can make all the difference.
If you are unsure about the documents that you currently have and want to know ways to avoid foreclosure in Kansas City, we can help you go over them as well as readily provide you with what you can do.
How the Judicial Foreclosure Works in Missouri
The State of Missouri federal law requires over 120-days of non-payment on your loan before it gets identified as a delinquent loan before any pre-foreclosure process begins. You then receive a Notice of Default for non-payment.
Judge declares foreclosure on your property about 60 days after the loan servicer filed it in court, your property then goes into an auction or a foreclosure sale.
- Right to Redemption
The statutory right of redemption allows the borrower (who defaults in payments) to buy the property back at any time before the foreclosure sale date or within a period of one (1) year by making a full payment of the sum of the unpaid loan plus foreclosure expenses.
MISSOURI FORECLOSURE FACTS:
- Missouri State Law exercises both Judicial and Non-Judicial Foreclosure
- Missouri permits the use of “deeds of trust” to document ownership of property
- Federal Law requires 120-day Pre-foreclosure Period
- Right of Redemption is allowed
- Deficiency Judgments are not allowed
Ways to Avoid Foreclosure in Kansas City
Work With The Government
Contact your state to learn more about the foreclosure time frame you are dealing with. When you learn the time frame and the different steps of foreclosure and compare that with what letters or other communication from your lender, this will determine how quickly you need to move to secure your exit strategy. The Federal Government’s Housing of Urban Development department has a handful of programs that may offer you a way out of your situation. A lot of these programs are determined on the home’s value versus how much is left on the loan. HUD also has counseling options available to help you understand your financial situation and what options may or may not work for you.
Another way to stop foreclosure in Kansas City is to take a long, hard look at your personal finances. Design a budget that will fit your basic needs like food, gas and mortgage payment. Skip the payments on optional or unnecessary items, like credit cards or expanded cable packages. Maybe opt for a cheaper phone plan and skip eating out. You might have to consider ways to make extra money, such as obtaining an extra job, or find odd jobs to do on social market boards or other local listing sites. You may also want to take a look at your home furnishings and sell the higher quality items to make a little extra cash. These options are great if you have a temporary hardship and are expecting to be able to make your mortgage payments more successfully in the next few months.
Rent It Out
A creative way to avoid foreclosure is to rent out your house to someone else. Their rent payment now becomes your mortgage and insurance payment. That means you would have to find somewhere else to live that is more affordable and move out. You could also rearrange your house to allow for a roommate to share your house and, depending on the amount of your mortgage payment, they might be able to pay a large portion of it to make it more affordable for you and fit better in your budget. On the other hand, renting out your home may lead to additional headaches from your renters and potential damage to your home.
The most simple way to stop foreclosure in Kansas City is to nip it in the bud with a short sale. There are lots of investors waiting for short sales to come on the market. This is where the bank will negotiate a sale price with a buyer and sells your house short of what is owed on it. Trust us, the bank does not want to own your house. They will usually take an offer that is close to the loan principal, even if the home is worth more than what is left. This makes for a great investment opportunity for buyers with cash on hand.