Just like a big storm, foreclosure is not a sudden calamity. Instead warning signs appear before catastrophe is imminent just as warning signs comes before the lender moves to the final procedure. Avoiding the issue, and ignoring it is one of the worst ways in facing this financial issue. Instead, consider and understand your options and using it to find the best possible outcome. Now, when should you make the first step? When you receive the first notification, it’s time to act ASAP!
Not only will you be evicted from the property at a moment’s notice, which is in itself a stressful way to live day-to-day, you will also lose any equity in the home. Regrettably, you could still be on the hook for any remaining debt on the mortgage as well. As for the damage to your credit, the misery of foreclosure simply does not end there; it reaches beyond your credit history and could harm your employment opportunities. A foreclosure can also have adverse effects on your housing options, and you won’t be able to qualify for a Fannie Mae mortgage for at least seven years.
Read on as we explore five ways you can stop foreclosure in WI.
Negotiate
Negotiating with the lender before proceedings begin is one way to stop foreclosure in WI if there is still enough time. Your lender may be more open to negotiating with you than you may believe. As foreclosures can take years to finalize, an average of 830 days, lenders have a great deal of leeway in giving leniency to borrowers to reorganize their finances and overcome temporary setbacks when possible. There are also programs in place that you may qualify for that could offer assistance in times of hardship.
Short Sale
If you have defaulted on your mortgage loan, a short sale is another way you can stop foreclosure in WI. With the lender’s approval, the home is sold at current market value, even if that is far below the amount still owed on the mortgage. However, a short sale is impactful on your credit score, and you may not have the immediate ability to attain another mortgage. You may also need to consult your tax professional, as second mortgages for uses other than home improvement may now be considered taxable income.
Bankruptcy
Filing for a chapter 13 bankruptcy may be a way you can stop foreclosure in WI. For example, suppose you have overcome the circumstances that interrupted your income stream, and you’re now able to arrange a chapter 13. In that case, you will be restructuring your debt, making your regular mortgage payments along with payments on the arrearage, typically for a period of up to five years. Chapter 7, on the other hand, will give you a little breather while you stall payments temporarily and play catch up.
Deed In Lieu
Signing the mortgage back over to the lender and walking away, known as a deed in lieu, is another way you can stop foreclosure in WI, satisfying the loan. However, you should be aware that junior liens, such as equity loans attached to the property through the deed, are undesirable to the lender and may prevent you from taking this route. In this scenario, foreclosure is more favorable for the lender because it will wipe out those existing debts. A lender will not act upon this option without your reaching out in writing and stating to the lender that you’re making this offer voluntarily.
Wisconsin Pretty Home Buyers
Selling your home directly to Wisconsin Pretty Home Buyers may be the best way you can stop foreclosure in WI. It is crucial that whatever action you intend to take is taken quickly to avoid paying the heavy penalties associated with a foreclosure for years to come, and Wisconsin Pretty Home Buyers is poised to step in and help you immediately. We will provide you with a guaranteed closing date, often in a matter of a few weeks or less. If you are not ready to move, we are happy to arrange a leaseback at fair terms; the direct buyers at Wisconsin Pretty Home Buyers will work with you to help make the transition as smooth as possible for you and your family. Selling directly to Wisconsin Pretty Home Buyers is a quick and easy process; you avoid paying high real estate commissions, the expenses of listing and marketing the property, the hassles of showings, and there is no need to worry about making any repairs.
A direct buyer from Wisconsin Pretty Home Buyers will lay out all of the numbers for you because our goal is to be certain you agree that our offer is fair. We do this at Wisconsin Pretty Home Buyers because we want you to feel good about the deal long after closing. Why not see how much Wisconsin Pretty Home Buyers will pay for your house right now, as-is for cash? Contact Wisconsin Pretty Home Buyers today at (844) 484-2897. phone].