Owning a home is part of the American Dream. But unfortunately, that dream is out of reach for many of us. And even if you’ve already found the means to purchase residential property, that doesn’t necessarily mean you’ll always be able to afford this type of lifestyle.
Unfortunately, this could mean you’ll fall behind on mortgage payments and may face foreclosure. Although you might not have been able to anticipate this financial hardship, you’ll need to come to terms with an impending foreclosure and take action in order to protect yourself. Here’s what Omaha residents will need to know about foreclosure — and how they can avoid it.
What Is Home Foreclosure?
The process of home foreclosure is initiated when a homeowner has missed making monthly mortgage payments. If the homeowner is unable to pay off the balance, the foreclosure process culminates in the seizure of the property.
During the previous quarter, there were 143,105 U.S. properties with foreclosure filings. Mortgage delinquency has actually decreased to record lows in the U.S., but there are a few states that have recently reported foreclosure increases. Nebraska was one of those states, reporting a 28% year-over-year increase in foreclosure starts as of February 2019.
Sadly, that means many people in the Omaha area could be facing foreclosure. Home foreclosure can happen for any number of reasons, including unexpected job loss or demotion, medical emergencies, divorces, family deaths, or excessive debt.
What Is the Best Way to Avoid Home Foreclosure?
Not only does foreclosure typically mean you’ll have to vacate the premises, but it may also have major effects on your credit for years to come. Therefore, you’ll want to do everything in your power to avoid the possibility of foreclosure.
One of the initial ways you might be able to prevent foreclosure is by talking to your lender. Lenders actually want to avoid foreclosure too, as the process can be costly for them. If you are in a position to, discuss loan modification options with your lender. They may agree to give you more time to form a repayment plan that allows you to spread out missed payments over a longer term or adjust the terms of your loan to make payments more feasible. In rare cases, a lender may offer to forgive a payment.
However, if your lender is unwilling to negotiate or you do not have the means to repay missed payments, you may need to explore other options. Declaring bankruptcy is one option, as this can stop a foreclosure from moving forward, but this choice can do even more financial harm to the homeowner in the future. While improving your credit score after a foreclosure may take a few years, it can take even longer to bounce back from bankruptcy.
In most cases, you’ll probably want to sell your house. Since it’s actually a seller’s market right now, house buyers could be lining up to purchase your property. That said, you may not have the means to make repairs before you sell your house or have the luxury of waiting a few months for the home to finally sell.
Being able to get cash for your home right away can offer a solution when you’re in a bind. This is why you might want to consider working with house buyers who regularly purchase properties from those who need a quick cash sale. When you sell your house to a cash buyer, you’ll be able to take the financial pressure off and avoid dealing with repairs, real estate agents, open houses, and other sources of delays. Instead, you’ll be paid for your home in a matter of days and can be free of the monetary restraints of your mortgage.
The process of selling your home for cash is simple. After providing the buyer with a bit of information, you’ll receive a cash offer for the property. This offer is given with no obligation on the part of the homeowner to sell. If the offer is amenable to the homeowner, the selling process can begin. Unlike when you work with an agent to list your home on the real estate market, you won’t have to make any upgrades or host any open houses when you sell your house in this way. Instead, cash buyers will ensure you’re paid quickly and without frustration. That way, you can figure out your next steps on a faster timeline.
When you’re facing severe financial hardship, you shouldn’t have to wait around for offers to come in or inspections to be performed. If you know that selling your house is the best option for your financial future, you can work with a home investor who specializes in these kinds of speedy sales. The sooner you can sell your home, the sooner you’ll be free from your financial burdens.
We buy houses Omaha residents need to sell quickly and for a fair price. When you sell your house to us, you can avoid foreclosure and start moving on with your life. To learn more about the home buying process in Omaha, please contact us today.