Becoming a homeowner is an exciting milestone for families to meet, but it can also bring some uncertainty. What happens if you can’t make your mortgage payments? Will the bank take your house? Keep reading to learn how to avoid foreclosure in Kentucky and what we can do to help.
Understanding Foreclosure in Kentuckyย
Foreclosure is the legal process of a mortgage lender taking possession of a property that a borrower has failed to make payments on. However, the majority of loan servicers will give borrowers 120 days to resolve the matter before instigating foreclosure proceedings.
After a foreclosure crisis hit the nation in the early 2000’s, several laws were passed to prohibit predatory lending practices and to require mortgage servicers to provide assistance to homeowners who are late on their payments. Most borrowers in KY have also signed a promissory note that gives additional protection in the event of a default.
How to Circumvent Foreclosureย
There are a few different ways you can evade foreclosure, but most of them come with a few risks that you may or may not want to take on, depending on your situation. For example, filing bankruptcy will stop the foreclosure process with an automatic stay but will also harm your credit in the process. Refinancing could be an option, but if you are already late on your payments, your lender is less likely to work with you.
One easy and affordable way to bypass foreclosure is to sell your house for cash and use the money to pay off your existing mortgage. Then, you can take out a new one for a smaller house or rent an apartment that is more in line with your current budget. This saves you from having to deal with the hassle and expense of foreclosure while still keeping you in a comfortable home.
Top 3 Benefits of Selling Your House for Cash to Avoid Foreclosure
1. It’s Fast and Easy
When selling your home the traditional way, it takes time to get inspections, complete title searches, and negotiate with buyers who have lender requirements to meet. Selling a house for cash is much faster and you can even get offers without making repairs or staging your home for sale first.ย
2. It’s Less Damaging to Your Creditย
Both bankruptcy and foreclosure are hard on your credit score, which can take you years to rebuild afterwards. Selling your home and paying off your mortgage protects your credit and gives you an opportunity to try again without having to wipe the slate completely clean.
3. It Offers Financial Reliefย
Mortgage payments can be high and hard times are more common for families across the Bluegrass State. Selling โthe house you can’t afford to buy one you can is a great way to โmanage the โproblem before it โturns into a foreclosure.
Are you having trouble making your mortgage payments and are worried about foreclosure? We can help you sell your house for cash. Contact Haas & Haas Properties in Lexington, KY to get your offer today.
Navigating Winter Home Sales: What You Need to Know
Thinking of selling your home during the winter months? You might be onto something great! While winter is often overlooked as a good time to list your home, it comes with unique advantages that could work in your favor. With fewer homes for sale, yours has a better chance to shine. Plus, buyers in winter…
Why Fix It? 6 Perks of Selling Your Home ‘As-Is’ and Moving On
When you decide to sell your home, the traditional route usually involves a series of steps that can seem endless. From home improvements and staging to dealing with potential buyers and negotiating offers, the process can be exhaustive and expensive. But what if there was a better way? Selling your home ‘as-is’ might be a…
In a Pinch? Selling Your House As-Is Quick
Selling your home is a time-sink and an exercise in frustration: unless you sell your house as-is, for cash. If you want to put your Indiana home up for sale, and you want it done quickly and with minimal hassle, we can help. In a Pinch? Sell Your Indiana House As-Is for Cash Under ordinary…