Foreclosures are not a sudden event; there is a lot of warning before the mortgage company moves on to the final process of foreclosing on your property. Putting your head in the sand and hiding from your problems is the worst thing you could do when you are having financial issues. Instead, it is always better to face your problems head-on and make the best choice by understanding all of your options. The time to take action is when you receive the first notification. Otherwise, the consequences of not doing anything are pretty significant.
Not only will you be evicted from the property at a moment’s notice, which is in itself a stressful way to live day-to-day, you will also lose any equity in the home. Regrettably, you could still be on the hook for any remaining balance on the mortgage as well. In addition to damaging your credit, the misery of foreclosure simply does not end there; it reaches beyond your credit history and could harm your employment opportunities. A foreclosure can also have negative effects on your housing options, and you won’t be able to qualify for a Fannie Mae mortgage for at least seven years.
Read on as we explore five ways you can stop foreclosure in South Carolina.
Negotiating with the lender before proceedings begin is one way to stop foreclosure in South Carolina if there is still enough time. Your lender may be more open to negotiating with you than you may believe. Since foreclosures can take some time to finalize, an average of 830 days, lenders have a great deal of leeway in giving leniency to borrowers to reorganize their finances and overcome temporary setbacks when possible. There are also mortgage relief programs that you may qualify for that could offer assistance in times of hardship.
If you have defaulted on your mortgage, a short sale is another way you can stop foreclosure in South Carolina. With the lender’s approval, the home is sold at current market value, even if that is far below the amount still owed on the mortgage. However, a short sale is impactful on your credit score, and you may not have the immediate ability to attain another mortgage. You may also need to consult your tax professional, as second mortgages for uses other than home improvement may now be considered taxable income.
Filing for a chapter 13 bankruptcy may be a way you can stop foreclosure in South Carolina. For example, suppose you have overcome the circumstances that interrupted your monthly income, and you’re now able to arrange a chapter 13. In that case, you will be restructuring your debt, making your regular mortgage payments along with back payments, typically for a period of up to five years. Chapter 7, on the other hand, will give you a little breather while you stall payments temporarily and play catch up.
Deed In Lieu
Signing the mortgage back over to the lender and walking away, known as a deed in lieu, is another way you can stop foreclosure in South Carolina, satisfying the loan. However, you should be aware that junior liens, such as equity loans attached to the property through the deed, are undesirable to the lender and may prevent you from taking this route. In this scenario, foreclosure is more favorable for the lender because it will wipe out those existing debts. A lender will not act upon this option without your reaching out in writing and stating to the lender that you’re making this offer voluntarily.
House Hub Real Estate Solutions
Selling your home directly to House Hub Real Estate Solutions may be the best way you can stop foreclosure in South Carolina. It is crucial that whatever action you intend to take is taken quickly to avoid paying the heavy penalties associated with a foreclosure for years to come, and House Hub Real Estate Solutions is poised to step in and help you immediately. We will provide you with a guaranteed closing date, often in a matter of a few weeks or less. If you are not ready to move, we may be able to arrange a leaseback at fair terms; House Hub Real Estate Solutions will work with you to help make the transition as smooth as possible for you and your family. Selling directly to House Hub Real Estate Solutions is a quick and easy process; you avoid paying high real estate commissions, the expenses of listing and marketing the property, the hassles of showings, and there is no need to worry about making any repairs.
We will lay out all of the numbers for you because our goal is to be certain you agree that our offer is fair. We do this at House Hub Real Estate Solutions because we want you to feel good about the deal long after closing. Why not see how much House Hub Real Estate Solutions will pay for your house right now, as-is for cash? Contact House Hub Real Estate Solutions today at 864-272-5400.