There aren’t many things more devastating to families than the possibility of foreclosure. You own your home and you love it, yet, due to unforeseen circumstances, foreclosure may seem forthcoming.
The stress of a foreclosure can be unbearable for local Kansas families facing this hurdle. And to make things worse, the foreclosure process can take months or even years, extending the agony even longer.
You do, however, fortunately, have options available to you here in Kansas; perhaps more than you know. There are several approaches and strategies you can implement that can help during foreclosure in Wichita to avoid legal foreclosure and move on with your life.
There are many ways to avoid foreclosure, but this article focuses on three. These strategies help you legally and properly avoid foreclosure as well as reduce the pain and frustration you face while lessening long-term financial obligations to you. While not all of these strategies apply in every situation, you should be able to find at least one that may work for you.
Strategy #1: Work Out a Deal with Your Lender
The first strategy is called a “foreclosure workout”. In a foreclosure workout, you will meet with your lender, let them know your situation and that you don’t think you can pay your mortgage, but would like to work something out in order to stay in your house and continue to pay your mortgage.
Lenders do not want to foreclose contrary to popular belief! Lenders are often willing to work with homeowners to find a solution – they want happy customers who pay their mortgages. They could offer you a temporary pardon on your mortgage payments. Another option may be a catch-up strategy where your mortgage payments are spread out so you can catch-up and pay them off or include a restructuring of outstanding amounts.
Strategy #2. Bankruptcy
Filing for bankruptcy may feel like an extreme measure, but it is one of your options to avoid foreclosure. Filing for bankruptcy puts a stop to the foreclosure process, indicates to creditors that you no longer are able to pay your bills, and puts a stop to the collection process.
however, filing for bankruptcy is the extreme option and it can require you to sell assets in order to pay off creditors. More importantly, though, bankruptcy remains on your credit score for at least six years and will impact everything from getting a job, buying a car, or getting a loan. This should be a last resort of defense!
Strategy #3. Short Sale Help For A Foreclosure In Wichita
The third strategy is a short sale. The process of a short sale is typically putting the proceeds of the sale towards your mortgage loan. This is a preferred method for those facing foreclosure because it is fast and effective.
- It is proactive – meaning you take matters into your own hands to alleviate the stress of foreclosure.
- It is fast – you can sell your house fast, in as little as a week, in some cases. You can get help for foreclosure in Wichita since organizations like Sell Now Homes Wichita help people going through short sales locally.
- It is very effective – a short sale can wipe out all or the majority of monies owed on your mortgage. If it does not cover it all, you will be responsible for the remaining balance, but can sometimes work out a deal with your lender.
There is a bright side with a short sale even though you have to leave your home: less of an impact to your credit compared to bankruptcy or foreclosure is a smart long-term decision that gives you options.