Facing Foreclosure and Need Help? Don’t Panic, You Have Options!4 Feb Devora Realty
COVID-19 has taken a toll on everyone, and unfortunately, it has forced many families to the brink of foreclosure. This is a terrifying reality for many people, but what many homeowners don’t know is that there are options available to them beyond foreclosure. In this blog, we’ve listed three quick overviews of your best options when faced with this difficult situation. Let’s begin with a quick definition.
What is the Foreclosure Moratorium?
Firstly, it’s important to be aware of the foreclosure moratorium. Those who are facing foreclosure because of the COVID-19 pandemic are unable to be evicted from their homes and cannot be continuously challenged with it. The foreclosure moratorium was extended through the end of February 2021, and may help you avoid eviction. (It is also worth mentioning that legislation is constantly changing so these deadlines may too!)
Option One: Reinstatement, Repayment, or Payment Deferral
Moving into our main discussion. You can avoid foreclosure in several ways. First, reinstatement is a great option for those who are able to pay a sum off the loan due or mortgage default. Reinstatement involves paying all of what is currently owed on the loan. After this, you’ll continue to make regular loan payments.
Another option is repayment. Repayment involves paying the past due balances on the loan over a longer period of time. A repayment plan must be approved, but is a great way to pay off the loan without having to pay a large sum at once.
Payment deferral is granted to those who have experienced a short-term difficulty, such as COVID-19, and were unable to pay their loan during that time. All past due balances are shifted to the end of their loan payment, meaning that you no longer have a mortgage default, and will only have to pay your regular monthly amount.
Option Two: Quick Cash Sale
A quick cash sale is a great option because you will sell your house quickly, for a good sum of money, and don’t need to worry about repairs or updates. Quick cash sales involve selling your home for a slightly below market price. Generally, investors are more interested in homes that are in need of repair and selling for reduced prices. On the downside, however, you won’t be making nearly as much money as you would typically selling your house at the value on the open market via a realtor.
In the San Antonio, TX, and Austin, TX, areas, there is a great market for selling your home quickly, especially in desirable areas. If this sounds like your home, a quick cash sale could be the answer you are looking for!
Option Three: List your home at Market Value
Listing at market value is still an option, even though it may seem out of reach to some stressed homeowners. The option to list a home at market value always exists for homeowners facing foreclosure, however, selling a home at market value often takes time and many stressed homeowners simply do not have it. Taking the time, on the other hand, provides homeowners with more profit upon closing.
Don’t Let Foreclosure Be Your Only Option
We want you to know that foreclosure isn’t your only option. You have many choices to avoid this! If you’re struggling with deciding which option is best for you, and are in or near the San Antonio or Austin, TX, areas, set up a private and complimentary consultation with us now so that we can help you by emailing us at [email protected] or clicking here to get started.