Foreclosure occurs when a homeowner is unable to make their mortgage payments on time and has no way to catch up on the missed payments. Because a mortgage is a legal agreement between you and your lender, once you’ve defaulted on the loan, the lender can auction off the property to cover any outstanding debts, leaving you homeless and with terrible credit.
No one wants to receive a notice of foreclosure and yet, in a nationwide study, nearly 1 million Americans were afraid of losing their homes (U.S. Census Bureau Household Pulse Survey, fielded from July 27 to Aug. 8, 2022). Foreclosure can occur from a number of reasons, including:
- Job loss and loss of income
- Divorce or death of a spouse or partner
- Mounting debt, including medical and credit cards
- Moving without being able to sell the home
- Natural disaster
Sell My Auburn House Fast is a local company operating in Alabama that has built their business by buying distressed houses and properties in the area for cash. They promise competitive cash offers without the hassle of dealing with real estate agents, title companies, traditional bank financing, and more!
What is Foreclosure?
Let’s say you or your spouse recently lost your job. You still have the same bills to pay but unfortunately you don’t have the money to cover your expenses, including your mortgage payment. What happens now? Even if you find another job the amount of debt you’ve accrued during that time might be too large for you to pay off in a reasonable amount of time. When this happens, the bank starts the process of foreclosure.
How Long Do You Have To Get Out of Your House After Foreclosure?
The steps for foreclosure in most states are missed payments, public notice, foreclosure, auction, and eviction, but the amount of time for each step varies based on state. You could have anywhere from 120 days to nine months before the bank can foreclose using either a judicial or non-judicial foreclosure. During this time, your lender will reach out to you by phone, mail, and email to let you know about the process.
The Different Types of Foreclosure
There are two different types of foreclosure you may experience: nonjudicial foreclosure or judicial foreclosure.
What Is Non-Judicial Foreclosure?
A non-judicial foreclosure is the fastest and cheapest way for a lender to foreclose on your Alabama property. It does not require taking you, the homeowner, to court and can be completed according to state statutes. In the case of non-judicial foreclosure, your lender repossesses your home to sell it and recover whatever debt is owed using what’s called a “power-of-sale” clause in the deed of trust. Not every state allows for this option but, if yours does, the lender will generally choose it to avoid any court costs.
What Is Judicial Foreclosure?
In states that require judicial foreclosure, your lender must file a lawsuit asking the court to issue an order to allow for the sale of the home. The lender must provide you with this letter. Whether you agree or not, you must respond to the letter or the lender will automatically win the case and be allowed to put your home up for a foreclosure sale. When the house is sold, you are still required to pay the difference between what you still owe on the mortgage and the amount the house sold for.
Auctions are not like regular home sales and generally the house is not sold for market value. This means that even if your house is in great shape and worth a lot more than what is left on your mortgage, you may still find yourself owing tens of thousands (if not hundreds of thousands) of dollars for a house you no longer own! This is called a deficiency judgment. It’s an expensive and long process for lenders to take to try and recoup their debt, which is why most prefer a non-judicial foreclosure.
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How to Sell Your House Before Foreclosure in Alabama
Let’s break down a few ways you can sell your house, depending on your time frame and situation:
Hire A Real Estate Agent
The first step most Americans think of when selling a house or property is to reach out to a local real estate agent. But there are pros and cons to this option when you are in a difficult situation such as foreclosure. Sure, a good real estate agent can list your property on the MLS and help you get it ready for open houses and daily showings, but they do all of this work so that at the end of the closing process a large chunk of your money from the sale of your house goes to them in the form of the agent’s commission. When you’re already suffering from a mountain of debt and need every penny to pay back your lender, a commission of 3% to 6% of your final sale price may be too hefty an amount to give up.
Plus, there’s the additional fear of not knowing when your house will actually close. Realtors may promise a lot, but at the end of the day you’ll still need to find the right buyer and wait 30+ days for a traditional close. For some homeowners who are facing auction and eviction, even waiting one month might be too long.
Short Sale
If you owe more on your house than it’s worth, your realtor may require what is called a short sale. A short sale is necessary when you owe more on your house than the property is currently worth. For example: if you owe $200,000 on your house but in the current market it’s only worth $150,000, you must deal with a short sale. Though it may seem like a good option, it won’t be fast or easy.
To start off, you’ll first need to get your lender’s approval. To qualify for a short sale, you must prove financial hardship using documentation such as W-2s, medical bills, etc. For a situation such as loss of income, the lender will require that you prove that the loss of income is long-term and unlikely to turn around in your favor. If the lender approves the short sale, you will need to find a real estate agent and attorney that specialize in short sales, and they will still charge you the same amount as they would if you were selling your house with a traditional home sale.
If your foreclosure hasn’t dragged on for too long and you’ve maintained contact with your lender, it’s likely that they will approve the short sale. This allows them to avoid the time and expense of trying to foreclose on your property, while still recouping some of the loss from the missed mortgage payments. But for the regular American homeowner, the short sale will follow them for the next 5 to 7 years.
You may have sold the house and been able to pay off some of your debt, but the short sale can damage your credit the same as if you had declared bankruptcy. The credit unions include the delinquency on your mortgage(s) to your lenders and the short sale on their records, making it nearly impossible for previous homeowners to get a credit card, buy a car, or move into a new house or property for the same amount of time as a bankruptcy.
Sell Your House AS-IS to A Cash Buyer
If you’re under a strict time restraint to sell your house before a foreclosure progresses to auction and eviction, you do have options! You can try to sell your property with a real estate agent, work with your lender to complete a short sale, or – best of all – turn to a trusted and reliable cash investor to help you with your situation.
Some of the benefits of selling to a direct cash investor include:
- A quick and pain-free closing process.
- Avoid paying any commissions or fees.
- You won’t have to worry about marketing your house and waiting for a buyer.
- No need to clean-up or complete any repairs!
When you sell your home as-is to a direct cash buyer, you not only can avoid losing your home to an auction, but you also may be able to sell the property for enough money to get out of financial debt. Moving on with your life without the burden of a monthly mortgage payment and debt hanging over your head is one of the best gifts you can give yourself!
Can You Stop Foreclosure Once it Starts?
Pay Off Your Loan & Fees
You’ve found yourself in a difficult situation. Your debt is adding up while your finances remain the same. It’s time to get serious and look at ways to pay down your debt quickly. Do you have any items you can liquidate? Maybe you have friends or family that can gift you money or provide you with a loan until you get back on track. If you are serious about paying down your debt and stopping foreclosure, you may need a financial professional to help you restructure your budget. Use one of these solutions or combine them all to help climb that avalanche of debt and get back to living a life free of stress.
Declare Bankruptcy
As a last resort, bankruptcy may help you stop the foreclosure of your home but it comes with a high cost. The bankruptcy process is complex and will require a lawyer that specializes in bankruptcy law. If the court approves your petition, you will be entered into a government-approved credit counseling program and the bankruptcy will be reported on your credit report for 7 years. A bankruptcy affects all areas of your life, including when you try to purchase a car, apply for a credit card or bank account, and can disqualify you from future rentals.
The Homeowner Affordability and Stability Plan (HASP)
If your debt is higher than your income, you may be eligible for the Homeowner Affordability & Stability Plan (HASP). HASP is a loan modification program targeted at borrowers who are at risk of foreclosure due to insufficient income. This government program was designed to help homeowners in the United States restructure their monthly payments to fit a limited budget. Apply for the program here to see if you qualify.
Related Articles
5 Ways the Foreclosure of Your Auburn Alabama House Will Impact You in the Future
What Homeowners in Auburn Alabama Can Expect During the Foreclosure Process
The Difference Between Pre-Foreclosure and Foreclosure for Homeowners in Auburn Alabama
How to Sell Your House During Bankruptcy in Auburn Alabama
Stopping the Foreclosure Process: A Guide for Auburn Alabama Homeowners
Sell Your House Fast to a Cash Buyer
Are you ready to sell your house but don’t have the time to wait 30+ days for a traditional close? Does a short sale seem like a fast way to ruin your credit? Prefer to pay off all your debt at once and get the bank off your back fast? A direct home buyer and cash investor might be exactly the solution you’ve been searching for! When you work with a trusted and reliable investor with a great reputation in your area, you’ll find a helpful company with cash on hand that is ready to purchase your home from your as-is. With a cash buyer, you can skip the lengthy process of foreclosure, eviction, and auction within a matter of days, and save your credit as well!
You may not get full market value for your house or property when you sell to a trusted cash investor, but the timeliness of a fast closing, and the lack of fees, required inspections, and commissions often balance this out at close. Best of all, because an investor can close fast, you can often close before the bank is able to auction off your property! This means you can sell the property for the amount that benefits you versus the pennies to the dollar price the bank will often try to sell your house for just to get it off the books.
We Buy Houses in Foreclosure & Pre-foreclosure–
Get Your Offer Today!
Does the idea of finally walking away from a property without the storm cloud of foreclosure hanging over your head? Contact a real professional at Sell My Auburn House Fast to find out more and get a fair cash offer for your property today.
Foreclosure is a daunting reality for many homeowners in Auburn, Alabama. The possibility of losing your home can be stressful and emotionally taxing, especially when facing financial difficulties. However, foreclosure doesn’t have to be inevitable. One of the most effective strategies to avoid foreclosure is by selling your home to a cash buyer like TK Properties. In this article, we’ll explore how selling to a cash home buyer can help you avoid foreclosure and the benefits of choosing this path.
Understanding Foreclosure and Its Consequences
Before diving into how selling to a cash buyer can help, it’s essential to understand what foreclosure entails and why it’s crucial to avoid it.
What is Foreclosure?
Foreclosure is the legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments. The lender does this by forcing the sale of the asset (in this case, your home) used as collateral for the loan. Once foreclosure proceedings begin, homeowners are at risk of losing their property, which can have severe financial and emotional consequences.
Consequences of Foreclosure
- Credit Damage: A foreclosure can significantly damage your credit score, making it challenging to secure loans or credit in the future. A foreclosure can remain on your credit report for up to seven years, affecting your financial stability long-term.
- Loss of Home Equity: If your home is foreclosed, you may lose all the equity you’ve built up over the years. This can be a significant financial setback, particularly if your home was your primary investment.
- Emotional Stress: Losing your home can be a deeply emotional experience, leading to stress, anxiety, and feelings of instability. The foreclosure process is often lengthy and stressful, exacerbating these feelings.
- Difficulty Finding Housing: After a foreclosure, finding new housing can be challenging, especially if your credit has been damaged. Landlords and mortgage companies may be hesitant to work with someone who has a foreclosure on their record.
How Selling to a Cash Buyer Like TK Properties Can Help
If you’re facing the possibility of foreclosure, selling your home to a cash buyer like TK Properties can be a viable solution. Here’s how:
**1. **Speedy Sale Process
One of the most significant advantages of selling to a cash buyer is the speed of the transaction. When you’re facing foreclosure, time is of the essence. Traditional home sales can take months, but a cash sale can often be completed in as little as 7-10 days. This quick turnaround can be crucial in avoiding foreclosure, allowing you to pay off your mortgage before the lender takes legal action.
2. Certainty of Closing
When selling your home through traditional means, there’s always the risk that the deal could fall through at the last minute due to financing issues or buyer’s remorse. In contrast, selling to a cash buyer like TK Properties offers certainty. Once you accept the offer, the sale is almost guaranteed to close, giving you peace of mind and allowing you to move forward.
3. Sell As-Is
If your home is in poor condition, selling it on the traditional market can be challenging. Potential buyers may request repairs or negotiate down the price, delaying the sale. TK Properties buys homes as-is, meaning you won’t have to spend time or money on repairs or updates. This is particularly beneficial if you’re struggling financially and can’t afford to invest in home improvements.
4. No Hidden Fees or Commissions
When selling your home through a real estate agent, you typically have to pay a commission, which can be as much as 6% of the sale price. There may also be closing costs and other fees to consider. With TK Properties, there are no hidden fees or commissions. The offer you receive is the amount you’ll walk away with at closing. This transparency ensures that you know exactly what to expect, with no unpleasant surprises.
5. Avoiding the Publicity of Foreclosure
Foreclosure is a public process, meaning that your financial difficulties can become a matter of public record. This can be embarrassing and may even affect your standing in the community. Selling your home before foreclosure proceedings begin allows you to avoid the public scrutiny associated with foreclosure.
6. Protecting Your Credit
By selling your home before foreclosure, you can protect your credit score from the severe damage that foreclosure can cause. While selling your home may not leave your credit entirely unscathed, it’s a far better option than allowing the foreclosure to proceed. This can help you secure housing, loans, and credit in the future, making it easier to rebuild your financial stability.
The Process of Selling to TK Properties
If you’ve decided that selling to a cash buyer is the right solution for avoiding foreclosure, you might be wondering how the process works. Here’s a step-by-step guide to selling your Auburn home to TK Properties:
**1. **Initial Contact
The first step is to reach out to TK Properties for an initial consultation. You can do this by visiting our website or giving us a call. During this consultation, you’ll provide some basic information about your property, such as its location, size, and condition.
**2. Schedule a Home Visit
Once we’ve gathered some initial information, we’ll schedule a convenient time to visit your home. During this visit, a representative from TK Properties will conduct a thorough assessment of your property. This evaluation helps us determine the fair market value of your home and allows us to make a competitive cash offer.
**3. Receive a Cash Offer
After the home visit, we’ll present you with a no-obligation cash offer. Typically, you can expect to receive this offer within 24-48 hours of the assessment. Our offers are fair and based on the current market conditions in Auburn, as well as the condition of your home.
**4. Accepting the Offer
If you choose to accept the cash offer, we’ll work with you to set a closing date that fits your schedule. The closing process is streamlined and can be completed in as little as 7-10 days, allowing you to avoid foreclosure and move on quickly.
**5. Close the Sale
On the agreed-upon closing date, you’ll sign the necessary paperwork to transfer ownership of your home to TK Properties. Once everything is finalized, you’ll receive your cash payment. This payment can be used to pay off your mortgage and any other debts, helping you avoid foreclosure and protect your financial future.
Conclusion
Facing foreclosure can be an incredibly challenging and stressful experience, but it’s not your only option. By selling your Auburn, Alabama home to a cash buyer like TK Properties, you can avoid the devastating consequences of foreclosure and move forward with your life. With a quick, straightforward process and no hidden fees, selling to TK Properties is a reliable solution for homeowners in financial distress.
If you’re ready to take the first step toward avoiding foreclosure, contact TK Properties today. Our team is here to help you navigate this difficult time and provide you with a fair cash offer for your home.