Are you behind on mortgage payments, and a foreclosure process seems to come soon? Going into foreclosure is undoubtedly scary, and homeowners need alternatives to save their homes. In 2009, a record 2.8 million properties received foreclosure notices, and currently with the COVID-19 outbreak, many homeowners have been struggling with their mortgage payments as well.
If you want to avoid foreclosure in Colorado Springs, there are many alternatives you could try. From negotiating with lenders to selling your house fast with a home buyer. You can potentially stop the foreclosure process entirely, or at least delay it. Now, let’s explore these alternatives and adopt the one that suits your needs and preferences.
File for Bankruptcy
If your foreclosure sale is scheduled for the next day or very soon, filing for bankruptcy is the best way to stop the sale immediately. Once you file the petition, federal law prohibits any debt collectors – including your mortgage lender, from continuing collection activities. Foreclosure is considered a collection activity; therefore, it’s effectively frozen.
However, bankruptcy only buys you more time to get back on your feet and recover from financial hardship. The debt isn’t canceled; instead, the law requires your mortgage company and other creditors to work in good faith with you. This means working together to create a reasonable repayment plan. When you go to court, the bankruptcy trustee’s role is to be a mediator between you and your creditors.
Apply for a Loan Modification
When you apply for a loan modification, you may be able to avoid foreclosure in Colorado Springs, as the bank might have dual tracking restrictions. Dual tracking is when the bank proceeds with the foreclosure while a loss mitigation request is pending. Keep in mind that if your loan modification is approved, the foreclosure will be permanently stopped, as long as you keep up with the modified payment.
In this case, your mortgage company will change the terms of your existing loan to make your monthly payments more manageable. This includes the amount due, interest rate, and length. However, you can’t wait until the last minute to do this option since it takes time.
The good news is that under federal law, if a complete application is received 37 days before a foreclosure sale, the servicer may not move for a foreclosure judgment or order of sale until:
- The servicer informs the borrower that is not eligible for a loss mitigation option.
- The borrower rejects all loss mitigation offers, fails to comply with the terms of a loss mitigation option such as a trial modification.
Contact a Home Buying Company
If you have less than 37 days and can’t apply for a loan modification or don’t want to file for bankruptcy. In that case, a home buying company is the right solution for you. There’s no easier way to avoid foreclosure in Colorado Springs because they guarantee cash in hand in seven days. This allows homeowners to get back on their feet and bypass all the legal consequences of foreclosure.
Besides, the process is fast and straightforward. It usually takes three steps to sell your house with a home buyer. Here’s how you can contact them:
- Research & Take The First Step
If you don’t have any home buying company in mind, research home buyers near you. Look for local companies with websites or social media platforms to learn more about the business and customer’s past experiences. Typically, they request you to fill out an online application with your property’s information. Or, you can call them directly and let them know you’re interested in their services.
- Schedule a House Tour
If your house meets the home buyer’s requirements, they will call you to schedule a house tour. Don’t be nervous about it, the visit is fast, and the company’s representative will ask more questions about the property. Then, he/she will decide the final offer and let you know within 24 hours.
- Accept the No-Obligation Offer
If you accept the no-obligation, all-cash offer, a home buyer can close the deal in as little as seven days. They even cover the closing costs and adjust to your schedule. If you need more time to think about the offer, they can wait days or weeks for a response.
Avoid Foreclosure in Colorado Springs With Colorado Cash for Keys
If now you’re thinking, “I want to sell my house fast in Colorado Springs,” you’re in the right place. Colorado Cash for Keys is a trustworthy and reliable home buying company that guarantees the best customer service and higher offers in the area. Contact us today; we promise you there’s no easier way to avoid foreclosure in Colorado Springs.