The threat of a foreclosure can be devastating to families. You own your home and you love it — it serves you well. Yet, due to unfortunate circumstances, foreclosure may seem imminent. Fortunately, you have options available and there is help with foreclosure in Kansas City .
For local Kansas City families facing foreclosure, the stress can be almost unbearable. Worse yet, the foreclosure process can take months or even years, stretching out the pain for longer than anyone wants.
Some options give you the opportunity to keep your home and give you some temporary relief from payments, but others will help you get moved into more affordable housing for good. These strategies that help with foreclosure in Kansas City are legal foreclosure avoidance strategies you can implement to help you resolve your foreclosure issue so you can get on with your life.
In this blog post, we share 3 ways that you can avoid foreclosure. The goal of these strategies is to help you legally and ethically avoid foreclosure and reducing the pain and frustration that you’re facing, while minimizing any long-term financial commitment or burden to you. Not all of these strategies will apply in every situation but you’ll probably be able to find at least one of the three ways that will work for you.
Strategy #1: Talk with your lender
The first strategy is a mortgage relief program. In these types of programs, you will make a request to your lender for assistance. Provide them with information about your current circumstances and ask about what programs they have available that might help you get back on track and stay in your home.
Contrary to popular belief, lenders don’t want to foreclose! They want happy customers who pay their mortgages, so lenders are often willing to work with homeowners to find a solution. This might include a temporary reprieve on your mortgage payments, or it might include a catch-up strategy where your outstanding mortgage payments are spread out so you can catch-up and pay them off, or it might include a restructuring of the outstanding amounts that you owe. We had a modification done on our own property once and $40,000 was “removed” from what we owed, but then tacked back on as a balloon at the end of the new timeline. This meant that at the end of our loan term we had to pay off the full $40,000 in one payment or get alternative financing to continue.
Strategy #2. Bankruptcy
Filing for bankruptcy may seem like an extreme measure but it is one of the “tools” in your foreclosure avoidance tool belt. When you file for bankruptcy, you indicate to all of your creditors that you are no longer able to pay your bills. Filing for bankruptcy will put a stop to the foreclosure process because all creditors must stop the collection process.
In filing for bankruptcy you have a choice to file for chapter 7 or chapter 13. You should use a bankruptcy attorney to help you determine what is best for you. In a chapter 13, you have an option to keep the house and the mortgage payments become part of the monthly agreement that you pay the trustee until you successfully complete the agreement that was approved by the court. It is important that you are realistic about being able to afford the payments that will be set forth because failing to complete the agreed upon plan for a bankruptcy is worse than the filing itself.
Strategy #3. Short sale help with foreclosure in Kansas City
A short sale may be a consideration, particularly if your home needs a number of repairs. Short sale means that you sell the house for less than what you owe. If you wish to utilize this strategy, you must get permission from your lender. This may take quite a bit of effort on your part as you will be asked to gather documentation to justify your request for short sale from the lender. This includes gathering quotes for repairs from licensed contractors, taking photos, and writing descriptions. A short sale may be preferred if you do not want to remain living in your house.
- This is a proactive approach, which means that you have some control over what happens, which can be a major stress eliminator.
- In some cases, you can sell your home in as little as a week! You can get help with foreclosure in Kansas City since organizations like Mastiff Home Buyers help people who are considering a short sale as an option.
As referenced above, if you agree to a short sale, you are agreeing to leave your home behind. This is the cost of saving your credit from bankruptcy or a foreclosure. Be sure to consider all your options carefully so that you can choose the one that is right for you.
If you find that you’d love to sell your house to get out from under your Kansas City foreclosure,