Few things for families are more devastating than the prospect of forfeiture. You own your home and love it — it’s good for you. However, forfeiture may seem imminent due to unfortunate circumstances. Stress can be almost unbearable for local Nevada families facing foreclosure. Worse, the forfeiture process can take months or even years.
Fortunately, here in Nevada, you have options- maybe more options than you know. There are many strategies that help with foreclosure in Reno; these are foreclosure prevention strategies that you can implement to help you solve your foreclosure problems so that you can continue your life.
This blog post will help you understand possible ways you can avoid foreclosure. Keep in mind that there are other ways to help you avoid a foreclosure. Also, always seek help from a professional when it comes to helping you avoid a foreclosure here in Nevada. The idea of these strategies is to help you legally and ethically avoid foreclosure and reduce the pain and frustration you face while reducing your long- term financial commitment or burden. Not all of these strategies are applicable in every situation, but you are likely to find at least one of the three ways that works for you.
Strategy #1: Talk to a lender and see if you can work out a deal
The first strategy is called a “foreclosure workout”. In a foreclosure workout, you will sit down with your lender and tell them you don’t think you can pay your current mortgage obligation, but you want to figure out something so that you can stay in your house and continue to pay your mortgage. Unlike popular beliefs, lenders do not want to foreclose. They want happy customers who pay their mortgages, so lenders are often willing to find out a deal with homeowners. This could include a temporary relief on your mortgage payments, or it could include a catch- up strategy where your outstanding mortgage payments are distributed so that you can catch up and pay them, or it could include a restructuring of the outstanding amounts you owe.
Strategy #2. Bankruptcy
Bankruptcy filing may appear to be an extreme measure, but it is one of the ” tools” in your tool belt for preventing forfeiture. If you file for bankruptcy, you tell all your creditors that you can’t pay your bills any longer. The bankruptcy filing will put an end to the forfeiture process because all creditors have to stop the collection process. However, filing for bankruptcy is a bit extreme: you may have to sell out some of your assets to pay off your creditors. And for many years, a bankruptcy will remain on your credit score, which could have an impact on everything from a loan to a car. You ‘ll even get a job. So this won’t be your first defense line!
Strategy #3. Short sale help for a foreclosure in Reno
A short sale is the third strategy — this is where you sell your home and put the proceeds of the sale toward the amount owing on your mortgage loan. A short sale is a preferred method for people facing foreclosure because it is proactive, fast, and very effective.
- It’s proactive, which means that you take matters into your own hands (that’s a major stress eliminator because so much of the stress of foreclosure comes from the process being completely out of your control).
- It’s fast — in some cases, you can sell your home in as little as a week! That’s also because it’s local: You can get help for foreclosure in Reno since organizations like Malcolm Shepherd help people going through short sales.
- It’s very effective because a short sale can completely wipe out (or almost wipe out) the amount owing on your mortgage. If there is any amount left over that is not covered by the sale of the property, you’ll be responsible for it (although you can sometimes work out a deal with your lender).
With a short sale, you still end up with the reality of having to leave your home but there is a bright side: The impact to your credit is much less (compared to a bankruptcy or a foreclosure) so this is a smart long-term play to give yourself some options.
You can also sell it to one of are investors. If you would like to get in contact with a Reputable Investor contact me today and I will put you in touch with one of our trusted investors. You can also contact them directly here.