When Is It Too Late To Stop Foreclosure?
Here are 10 options for stopping foreclosure proceedings on your home, depending on where you are in the foreclosure process timeline.
It can be a complicated situation, and even though I am a real estate agent and I like selling houses, selling your home to avoid foreclosure may not be your best option.
10 Ways To Get Out Of Foreclosure Once It Starts
Let’s take a look at 10 different options you can use to stop foreclosure right up to the last minute or get out of foreclosure once it starts.
Foreclosure Option 1: Loan modification
Talk to your bank to see what can be done to get things back on track.
This may be the fastest and easiest thing to do. If you can explain the situation, they’ll probably be willing to work with you to help get you back on track and out of the pre-foreclosure process.
I’ve done several loan modifications with people who needed to renegotiate their mortgages with their banks.
Foreclosure Option 2: Get A Side Hustle
If you can work, because I know not everyone can, your quickest option may just be to buckle down and put some extra overtime or get a side gig to make those payments so you don’t lose your home.
Sometimes life happens. We get behind. And then we get overwhelmed and can’t see our way out of the problem.
However, I totally understand if you aren’t able to work or are already have too much on your plate. Then you could look at other options.
Foreclosure Option 3: Personal Loan
Talk to family members and friends to ask for help. Sure, it might hurt your pride, but it’s better than them finding out that you got lost your home.
If you have a good support system and you have caring family members who can come together and work with you to overcome this difficult time.
Foreclosure Option 4: Hard Money Loan
If you don’t have any relatives or family members who can help you, you can look into getting a loan from a private investor.
They typically charge a higher interest rate, so it’s not something you would probably want to take too much money out on over too long a period of time.
But if you just need to make a few back payments to get caught up, or you know you’ll be getting a tax refund soon, then this might be a viable option.
Foreclosure Option 5: Rental (or House Hack)
You could rent your home out to cover the payments. If you have somewhere else you can crash for a time, you can let someone else live in your home and make the mortgage payments for you. You might even be able to rent it out for more than your mortgage payment.
Or if you don’t have anywhere else to go, you could just rent out a portion of your house. Taking on a housemate who helps out with rent and utilities is extra money that you can put toward your mortgage payments.
Just be careful about who you rent it out to and do your due diligence because the last thing you want to do is get a bad tenant in there who doesn’t pay and smashes things up.
Foreclosure Option 6: Cash Offer
If you need to sell fast, you can sell your house to an iBuyer or investor for cash. That way you can close quickly and get the property off your hands.
Although the downside to this is that typically, they’ll only pay you 30% less than market value. Because they’ll fix up your house and improve it, then sell it for a profit.
But if you need to sell the house as-is really fast, and you just want to walk away from the whole mess without having to clean up the place or deal with any of the issues, this may be one of your best options.
If this sounds interesting, we can bring you an immediate cash offer from one of the companies we work with, but then still market your home for up to 45 days to see if you get a higher offer. Just fill out the form below if you want us to help you find the best cash offer available for you.
Foreclosure Option 7: Subject To (or a form of creative financing)
This usually takes the form of seller financing where you become the bank. You sell the home, but allow the buyer to take over the mortgage payments for you.
They get the payments caught up so you aren’t having to worry about getting foreclosed on and you transfer the deed into their name.
The advantage to the buyer is that they don’t have to come up with the cash all at once, and you get more than you would on a cash sale. Or sometimes they just can’t get a good loan, so you help them and they help you.
Now, you do have to be careful because some lenders don’t allow anyone else to assume the loan. And most lenders and mortgage brokers don’t like it because they don’t get to charge all their hefty fees for a new loan.
But I know there are a lot of buyers out there using this option to buy homes and help people out who are in pre-foreclosure and running the risk of getting foreclosed on.
Foreclosure Option 8: Listing your home for sale with a real estate agent
If none of the other options work for your situation, or investors don’t want to pay what your house is worth, you can look for a traditional buyer by marketing your house through a real estate agent.
You’ll work with your real estate agent who will list your home in the real estate associations database of homes for sale where all the other realtors helping buyers can see that your home is available for sale.
There are other marketing strategies that your local real estate agent will use to get your house in front of as many eyeballs as possible to get you as many offers as possible.
Foreclosure Option 9: Renovate Your Home For Sale
Now, this may sound counter-intuitive because you don’t have money and need to sell quickly, but it will allow you to get more money for the sale of your home.
So, instead of selling your home cheap for an investor to flip and keep the profits, we can help you do this with no money of pocket until the home sells.
We can connect you with one of three companies that will come in and fix up your house and get it ready for sale without charging you any money upfront. They only get paid when the home sells.
And they only charge for repairs and work they do. So all the extra profits you make on the house are yours to keep and you don’t have to leave that money on the table for the investors.
The only downside is that you’d have to wait till the renovations are done to sell, so it might take a little longer. And depending on how far along you are in the foreclosure process, you might not have time to do all that.
Foreclosure Option 10: Bankruptcy
Obviously, it goes without saying, that I hope things don’t or haven’t come to this point for you as you’re reading this.
But if you don’t have any other options, you could work with a lawyer to help you declare bankruptcy so you can pause the foreclosure process.
A good lawyer can help get you more time to continue to live in the house beyond your initial 90 day period.
Don’t Wait To Explore Your Options Until The Last Minute
If you are in pre-foreclosure or even foreclosure, don’t wait until the last minute to try to do something about it.
Talk to your local real estate agent or even a lawyer as soon as possible to find out what your options are. I’ll be happy to talk with you, explore your options, and even work with you if you live here in Pinellas, Pasco, or Hillsborough counties.
Even if you don’t live in my area, but want to talk about your options for selling your house in Florida, you can message me or call (727) 249-4022.
Or just fill out the form below and we’ll get back to you a.s.a.p.
Contact Us To Talk About Your Stituation And Foreclosure Options
P.S. Here are some more ideas for for future blog posts. Let me know if any of them interest you.
- foreclosure process timeline
- how to stop foreclosure at the last minute
- can you get out of foreclosure once it starts
- hard money loans to stop foreclosure
- can banks foreclosures during covid 19
- can banks foreclose right now foreclosure process in florida 2021
- how to get out of pre foreclosure
- how to get a house out of foreclosurehow to get your house out of foreclosure
- how long to move out after foreclosure auction
- how long to move out after foreclosure
- ways to get out of foreclosure in Florida
- how to get rid of a foreclosure on your credit report
Here’s a slideshare presentation of the information above
Leave a comment below and give us some feedback so we can better help you with your home buying and selling needs in Florida.
What would you be willing to do to stop foreclosure on your home?