The possibility of foreclosure is one of the most devastating events for families. You cherish your home, as it has been a valuable asset in your life. However, due to unfortunate circumstances, foreclosure may be on the horizon.
The stress of foreclosure can be almost unbearable for families in the IL area. Moreover, the foreclosure process can drag on for months or even years, prolonging the agony far beyond anyone’s desires.
Thankfully, there are options available to you here in IL, which you may not be aware of. There are numerous legal strategies that can assist you in avoiding foreclosure in Belleville. By implementing these strategies, you can resolve your foreclosure issue and move forward with your life.
This blog post discusses three ways to avoid foreclosure (although there are additional methods available). The aim of these strategies is to assist you in avoiding foreclosure in a legal and ethical manner, while minimizing any long-term financial commitment or burden on you. Although not all of these approaches may be relevant to your situation, you will likely find at least one of the three methods useful in reducing the pain and frustration you are experiencing.
Strategy #1: Work out a deal with your lender
The initial approach is referred to as a “foreclosure workout.” This involves meeting with your lender and expressing your inability to meet your current mortgage obligation. However, you would like to negotiate a solution that allows you to remain in your home and continue paying your mortgage.
Despite popular belief, lenders do not desire to foreclose on properties. They prefer satisfied customers who pay their mortgages on time. Therefore, lenders are often willing to collaborate with homeowners to reach a deal. This may involve a brief pause on mortgage payments or a catch-up strategy where outstanding mortgage payments are distributed so that you can repay them. Alternatively, it may involve restructuring the outstanding debt you owe.
Strategy #2. Bankruptcy
Although it may appear extreme, filing for bankruptcy is a foreclosure avoidance tool at your disposal. By filing for bankruptcy, you inform all your creditors that you cannot repay your debts. Filing for bankruptcy will halt the foreclosure process, as all creditors must cease collection efforts.
Filing for bankruptcy, however, may necessitate selling some of your assets to repay your creditors, making it an extreme measure. Additionally, a bankruptcy declaration will remain on your credit report for an extended period, impacting your ability to obtain a loan, a vehicle, or even a job. Consequently, it should not be your initial line of defense.
Strategy #3. Short sale help for a foreclosure in Belleville
Filing for bankruptcy, however, may necessitate selling some of your assets to repay your creditors, making it an extreme measure. Additionally, a bankruptcy declaration will remain on your credit report for an extended period, impacting your ability to obtain a loan, a vehicle, or even a job. Consequently, it should not be your initial line of defense.
- Being proactive implies taking control of the situation, which can be a significant stress reliever since much of the stress associated with foreclosure comes from the feeling of having no control over the process.
- Selling your home through a short sale is often a speedy process, and in some instances, you can complete the transaction in as little as a week. This rapidity is due to the sale being local. In Belleville, organizations like Cardinal Creek Properties provide assistance to people experiencing short sales as a foreclosure avoidance strategy.
- Selling your home through a short sale can be highly effective since it may completely erase or substantially reduce the outstanding balance on your mortgage. If the sale proceeds do not cover the entire outstanding balance, you may be accountable for the remaining amount, though in some cases, you can negotiate with your lender.
While a short sale necessitates leaving your home, the positive aspect is that its impact on your credit score is considerably less severe than that of a bankruptcy or foreclosure. This makes it a prudent long-term strategy that provides you with additional options.
If you’re interested in selling your house to escape foreclosure in IL, please contact us today at (314) 467-8137, or click here to complete the form, and we’ll be delighted to provide you with a reasonable all-cash offer for your home.