For homeowners who want to stop foreclosure in Kansas City, the future can look pretty grim. In our latest post, we offer 6 things you can do to stop foreclosure of your Kansas City house.
With the uncertainty of the world right now it has become much harder for many homeowners to pay the mortgage each month. The current pandemic has caused a lot of people to lose their jobs and unfortunately that has made the prospect of foreclosure much higher for many. If you happen to be in this situation you probably realize by now that at some point the bank will come and take your home from you. You need to find a way out of this problem and stop it before it happens. Keep reading to learn 6 things you can do to stop foreclosure of your Kansas City house.
The absolute best way to go if you need to stop foreclosure of your Kansas City house is a direct and fast sale to a local professional home buying company. PSR Home Buyers is a local Kansas City home buying company that is dedicated to helping homeowners is difficult situations. When you are trying to stop foreclosure of your Kansas City home, you need to act fast to keep this situation and the banks from destroying your credit and harming your financial future for years. If your back is against the wall and you are running out of time you will need to sell withing a few days. Giving up your home can feel difficult, but it is better to sell by choice than to have the bank come in and forcefully take over the property.
For some homeowners, borrowing money from a family member can be a quick solution to stop the bank. However, this isn’t a long term solution to your financial struggles. If the mortgage has become difficult to pay now, it’s likely that it will be difficult to pay going forward. Getting into a pattern of continuously borrowing money will only get you into more debt, but this time it will be with multiple creditors. Borrowing money from loved ones can also strain your relationships with the people that you care about, making your difficult situation feel that much worse.
Ask For Forbearance
One option when you are struggling to make your mortgage payments is to reach out to your lender and explain the situation. In some cases, you will be able to defer a payment or work out a payment plan to make up what you owe. That said, you will still have to find a way to pay your debts. Deferring the problem will only push things back, it won’t magically get you caught up or erase the debt you are in. Asking for forgiveness is a one-time thing, to help deal with an unexpected situation… not something to bail you out long term. Loan forgiveness is also known as loan forbearance and is used after an illness, a loss, or anther one-off circumstance.
Refinancing your property can help you to achieve a lower monthly payment, but there is a cost. If you choose to refinance with a hard money loan, your interest rates can be through the roof. While this may help you to save your house from the bank, it will ultimately cost you more money in the long run. You can also work with your current lender to refinance your current loan, however, you need to prove you will not have trouble with your payments going forward.
Rent The Property To Someone Else
If you aren’t able to pay the mortgage yourself, maybe someone else can. Of course, This means that you will need to quickly find somewhere else to live at a price you can more easily afford. You’ll first need to find high-quality tenants who you can count on to pay the rent each month. If your situation allows, you could also choose to rent out a bedroom in your home for some extra cash, while you continue to live in the home as well. Just make sure boundaries are set on both sides so that everyone is comfortable with the living arrangements. Having the wrong people move in can cause you to default on your mortgage anyway, ending up with the same result of losing your Kansas City house to foreclosure.
Nobody is thrilled about having to declare bankruptcy, but it order to fight off foreclosure, it may be the answer you have been waiting for. Declaring bankruptcy will restructure your debt and create a payment plan to get you back on track. While this won’t look good when applying for loans in the future, it can be a way for you to keep your current home, stopping the banks in their tracks.
At PSR Home Buyers, we want to help you stop the foreclosure of your Kansas City house. Our team can help you review your options and make you a no-obligation offer to help you sell quickly. Let our team help you quickly and efficiently handle any difficult property or situation you are dealing with.