Stop Home Foreclosures

Many faced with financial difficulty may be forced to consider ways to stop home foreclosures. The idea of losing your home to foreclosure is painful for any home owner.

The sad fact is that the foreclosure process can start as early as four missed mortgage payments and can seriously impact your financial future. If you’re falling behind on mortgage payments or have received a pre-foreclosure notice, now is the time to act stopping foreclosure before it fully starts!

Why Focus on Stopping Foreclosure Before It Starts?

House in Foreclosure

The foreclosure process can take years to fully execute, but that doesn’t mean you’ll be living free and clear without suffering serious damages to your credit. Each missed payment will get tacked on to your credit report and the foreclosure will show up 7 years. You can expect your credit score to drop at least 100 points, but often much more, and it can take up to 10 years for your score to fully recover.

If you’re falling behind on mortgage payments or received a notice of pre-foreclosure, your long-term credit health is probably the last thing on your mind. That said, though, it really shouldn’t be. Your credit health and credit history have significant impacts to finding a new place to live, including rentals. Many landlords will not rent to a tenant with a previous eviction or foreclosure, as they’ll see this as a high-risk factor that you’ll default on your rent obligations.

Impact to Buying a Home After Foreclosure

Impact to Buying a Home After Foreclosure

Many who have been unable to stop or avoid home foreclosure have found it difficult, if not impossible, to get approved for buying a home after foreclosure. Forget about popular options like FHA loans completely and assume that you won’t qualify for a conventional loan either. Most conventional loans require the full 7-year period to pass after a foreclosure or short sale. Extenuating circumstances, like a serious illness, that have now resolved and can be adequately documented and proved may shorten that period slightly, but not enough to get you in a new home when you need it. If you can prove a death or illness adequately, you may get approved for a conventional loan after foreclosure in about 3 years.

How to Stop Home Foreclosures Quickly

If you’ve received a notice of pre-foreclosure or are 4 or more payments behind on your mortgage, now is the best time to act. Selling your house for cash is often the best solution, as an investor will be able to pay off your loan obligations and may even provide a strong enough offer that you’ll have cash to finance a move or even purchase a more sustainable property. Cash home investors can also negotiate with the bank on your behalf if you’ve already received a pre-foreclosure notice and stop the process before it leaves a near-permanent mark on your credit history.

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