Sometimes life just gets in the way. We are living a happy life and things are going great then all the sudden it takes an turn for the worse. Maybe we lose our job, we get a divorce, or we have a spouse that dies unexpectedly. Any one of these events can make it impossible for us to pay our mortgages, and when this happens we run the risk of facing a foreclosure on our home. When events like these happen many people begin to look for solutions. Maybe you’re in this situation right now and have asked yourself, can I sell my house to avoid foreclosure in Kansas? There are solutions to your problem and they can help you avoid the foreclosure process.
What causes foreclosure in the first place?
Many people that face foreclosure don’t understand the foreclosure process or even what happened to get them there.
Missed payments
Maybe you lost your job, got sick and couldn’t work, lost the second income in your home from divorce or death, or just hit a rough patch financially. That lead to a few missed payments and before long you 3 payments behind and 90 days overdue on your mortgage. When this happens and you haven’t received a Notice of Default there is still time to contact your bank and work out a solution with them. Banks do not want your home, they want you to make payments and are usually very willing to help you as long as you are proactive and don’t let the issue drag on for too long.
Pre-Foreclosure
The lender will record a public notice that your are in default of your mortgage payments. This is basically a grace period and you usually have 90 days or so to get caught up on your payments. You may try to work things out with your lender, see about getting another loan, or even selling your house to avoid foreclosure in Kansas.
Auction
If you were not able to get out of default in the 90 day grace period the lender will usually set a date for an auction to sell the home. At a foreclosure auction your home will be sold to the highest bidder regardless of if the sale covers the balance of the mortgage or not. The homeowner could still be responsible for the remaining balance of the mortgage.
How Does Foreclosure Affect Homeowners?
If at all possible you should do everything you can to avoid foreclosure. Like I said earlier, work with your bank right away if you are having trouble making your payments. Speak to a real estate professional about your situation, they may be able to offer solutions. Regardless you do not want to get into foreclosure because it will have a lasting impact on your life. Not only does foreclosure negatively impact your credit score it could make it even more difficult to purchase another home. Some lenders require a waiting period after a foreclosure while other will not lend at all to someone that has foreclosed. Foreclosures can have tax implications. You could be liable for the taxes from the sale of the home that the lender sold through auction.
Can I sell a house to avoid foreclosure?
The short answer is yes. Until the auction takes place you have options.
Short-Sale
This can be a difficult task but if you have time you may be able to list it as a short sale. If you happen to get an offer on your home, the lender is required to consider it before the auction takes place. You will usually have the option to sell before the foreclosure happens.
Speak with your lender about refinancing
As I stated earlier, banks do not want your house, they make their money from your payments. If a bank has to foreclose often times the bank ends up losing money, so it’s in their best interest to work with you. Sometimes you may be able to qualify for a refinance of your loan, which could lower your payments and help you stay in the home and avoid foreclosure in Kansas.
Sometimes the best option for sellers looking to avoid foreclosure in Kansas is to sell their house to a cash buyer. This is a simple process. The buyer takes a look at your home and then makes an offer. If you are happy with the offer you sign the paperwork to complete the sale and in a few days the buyer will close on your home. You will get your money and be able to pay off the mortgage you owe the bank, avoiding foreclosure and all of the issues that come with it.
Avoiding Foreclosure in Kansas
At PSR Home Buyers, we are here to help you avoid foreclosure in Kansas. As a Realtor and an investor, my goal is to work with you to create a situation that works out best for you. Maybe that is selling your house for cash and closing fast. Maybe you should list your home and take a little extra time to sell it for more money. There are countless options available when you need to sell your house fast and unlike other investors I am here to walk you through those options.