Facts About Foreclosure and How to Get Out of It

Facts About Foreclosure and How to Get Out of It

When you purchased your home, you probably signed a mortgage with a lender. The mortgage comes with a set of terms that requires you to make a specific payment each month until the loan has been paid off. If you do not make the required monthly payments, your lender may have the right to foreclose on you. It can be stressful if you have been notified that your lender has started the foreclosure process, but if you understand what your options are, you may be able to get out of it.

Take a look at a few quick facts about foreclosure below, and consider reaching out to us to sell your house.

Foreclosure Has Multiple Stages

One of the first facts you need to know about foreclosure is that it has multiple stages. Just because you have gotten a letter doesn’t mean that the lender is going to take your house from you right now. The stages of foreclosure include:

  • Payment default. The first step is called payment default. Once you have missed two debt payments, your lender will move you to the payment default category.
  • Notice of default. After 90 days, the bank or lender will provide you with a letter, officially notifying you that you are in default. The bank will also give you another 90 days to settle the account.
  • Notice of sale. After the second 90 days, if you have not settled the account, the county will set a location and date to put your house on the auction block.
  • Sale process. Now, your house is publicly available for sale, and the highest bidder can take possession of it.
  • REO. In the event that your house does not sell at auction, the bank or lender will take possession of the house and try to sell it again.
  • Eviction. Once the sale has been finalized, you will have 90 days to get out of the house, or you will be evicted by local authorities.

If you add up the timeline, you will see that it could take many months for the lender to sell your house. As a result, you need to make the most of this time and do everything you can to either settle the balance or sell the house on your own.

If Your House Is Sold, You May Still Owe Money

Many people believe that if the bank forecloses on them and sells their house, they no longer owe the bank any money. In reality, that is not the case. You have a specific balance on your mortgage that has to be paid off. If the bank forecloses on you and sells your house, but the house does not sell for enough money to pay off your mortgage, you may still owe the bank some money even though you no longer have a house. That is why you need to know what your options are.

Get Out of Foreclosure by Selling Your House

If you want to put a stop to the foreclosure process, one of the easiest ways to do so is to sell the house on your own. It could take some time to sell your house the traditional way, and that is why you may want to reach out to a cash home buyer instead.

Of course, you should always start by reaching out to your lender to understand how much money you owe on your mortgage. Then, once you know your balance, you can reach out to a cash home buyer who can help you get to the closing table as quickly as possible and pay off the remaining balance on your mortgage. That is where we can help you.

Get Out of Foreclosure With Purple Mountain Holdings

Do you want to get out of foreclosure? At Purple Mountain Holdings, our experts are here to help you. We can provide you with cash for your home, helping you to get to the closing table before the foreclosure process has a chance to reach its end. Then, by providing you with cash for your home, we can minimize potential closing costs and real estate agent commissions, putting more money in your pocket. Call us today to see how much your house is worth!