Foreclosure can have serious consequences on homeowners like you. On top of losing your home in Durham to the foreclosure process, your credit score can be hit. This can affect your ability to take out loans, sign up for products like credit cards, and even affect your reputation when seeking work in certain industries.
Fortunately, you can avoid the pitfalls of foreclosure in North Carolina if you take the right steps to protect your interests. The point from your first missed payment to the time your lender officially forecloses on your home is fairly long, so you have time to act swiftly. Here are your options when faced with the risk of foreclosing on your home.
Talk to Your Lender
Whether you’ve just missed your first payment yesterday or have just received your notice of foreclosure, contact your lender immediately. Your instinct may tell you to ignore the notice or try to hide from your lenders, but this can only make your situation worse. Foreclosure is a time-consuming and costly procedure, so most lenders see foreclosure as a last resort to recoup their losses. If you approach your lender and explain why you’ve missed your payments, they’re more likely to want to work with you rather than foreclose on your home.
After you’ve missed one or two payments, your lender may contact you to remind you of your payment. Some lenders even reach out and offer loan renegotiations if you’re experiencing financial hardship. Depending on your situation, they may be inclined to reduce your loan, waive your late penalties, or at least reschedule and restructure your payment plans so that they’re more manageable to pay off.
Conduct a Short Sale
After you’ve received your notice of foreclosure, you can’t sell your home without your lender’s permission. Depending on your lender, you may be allowed to perform a short sale. A short sale takes place when the market value of the property is lower than what the homeowner owns. After agreeing to conduct a short sale, you’ll sell it to a buyer who will agree to buy it for a below-market value and the proceeds will go to the lender.
Unfortunately, the lender has the right to reject your offer to perform a short sale. Given that your debt may be larger than what the house is worth, some lenders may find it more practical to undergo foreclosure and fetch a better price auctioning off your property, depending on market trends in North Carolina.
Sell Your Durham House in Foreclosure
If you’ve just missed your first payment and have yet to receive a notice of foreclosure, you’re still allowed to sell your home without the lender’s permission. This means you can sell your property and use the proceeds to pay off your remaining debt.
However, keep in mind that the time of your first missed payment to the time your bank can file a notice of foreclosure is a very small window. It can vary depending on your loan agreement, but for most banks it can be 120 days after your first missed payments. And given that the average time to sell a house in North Carolina is 83 days, this means selling on the real estate market is going to be tight.
Ready to Sell Your Home?
But why risk the long turnaround time of the real estate market when professional homebuyers can help you sell your home in Durham, NC fast. Simply contact Jolific Homes to schedule a property viewing, and we can provide you with a fair offer within 24 hours after viewing the property. Compared to the average time it takes (48 days) to receive an offer on the market, you can sell your Durham House in a fraction of that time. Once you accept your offer, you can choose your closing date and can close and receive your funds in as little as 14 days.
Depending on your equity and the value of your home, this may be enough to pay off your remaining debt and avoid the pitfalls of foreclosure.
Contact Jolific Homes to Learn More
The risks of foreclosure can have an effect on your financial stability and future. If you’re at risk of getting foreclosed, don’t wait until the last moment to address it. You have several options available, and they can help you ease your financial hardship and prevent the consequences of foreclosure.
For more information and to schedule a property viewing, contact Jolific Homes today.