Foreclosure. It is one of the worst fears for a homeowner. This is the thing that can put a family out on the street and have all of their possessions tossed to the curb in front of their neighbors.
Unfortunately, this problem is all too common in the United States. In 2022, there were over 324,000 homes that went into foreclosure.
If you are reading this article, you may be in danger of being foreclosed. You are likely looking for the best ways to avoid foreclosure.
Relax, we are here to help. This is your guide for avoiding foreclosure.
California Foreclosure Timeline: What Homeowners Need to Know
The first thing you need to do is be aware of the foreclosure timeline. In California, this timeline is more generous than in other states.
This process typically lasts at least 200 days and it starts from the first day you miss a payment. However, things do not get really serious until you go 120 days without your home loan being current.
That is because this is when the Notice of Default gets sent out to you. This notice lets you know that your loan is in default and what options you have to get your loan out of that status.
From there, you will have about three months to get your loan in order. If you still fail to get your loan current after 180 days from the missed payment, then you will get a Notice of Trustee Sale.
This is when the stakes start getting high for homeowners who are at risk of foreclosure. The reason is that once this notice gets sent out, homeowners may only have 20 days to find a resolution until their home gets put up for auction.
When you get a notice for the auction date, this is supposed to act as the final deadline for getting your loan current.
If you are lucky, you may be able to delay the auction sale for a few extra months. However, the above is the general timeline that you should be aware of when it comes to foreclosure.
Understanding the Real Costs of Foreclosure in California
If you can’t get the money together to keep your home by yourself, you should still look at other options to sell your home before you let it get to a foreclosure auction. There are a few big disadvantages to allowing your home to enter foreclosure.
The first is that you may not get as much money for your home in a foreclosure auction. Most people who buy homes in these types of auctions know that lenders are desperate to get rid of the property. As a result, buyers may be looking for a bargain and end up purchasing the home for less than market value.
That in itself can be bad for a homeowner in foreclosure that has large enough debt. The reason is that the auction sale is not always enough to cover the debt a homeowner has with a lender. If this is the case, they could still end up owing the lender thousands of dollars even after the auction.
Another disadvantage to foreclosures is the ability to get a place to live in the future. A foreclosure will be on your credit history for several years. That could potentially scare anyone off from giving you a place to live.
When it comes to home loans, you would not be able to get another one with a foreclosure on your record. However, even trying to rent an apartment could be much more difficult if you have a foreclosure on your record.
For the sake of your future living situation, you may want to find another way to come up with the money.
Why Sell Your House to a Real Estate Investor to Avoid Foreclosure?
If your auction date is getting close, you do still have one option if you cannot come up with the money to get current on your loan. That option is selling your home to a real estate investor.
The good news with this option is that it can be a fast sale. There are investors out there that are willing to buy your property as is.
When it comes to foreclosure risks, this can be great news because it is likely you are going to have to complete this sale before your auction date.
What is the benefit of selling your house yourself? As described above, people in foreclosure auctions are generally looking for bargains.
This means that you have a better chance of getting a higher offer from a real estate investor. It could be enough to get you out of debt with your lender if the right negotiations happen.
If this is the case for you, then you are at least moving to a new place with a clean slate when it comes to debt.
You want to do everything you can to clear your debt yourself before certain decisions are made for you. This can be the fastest and easiest way to do it.
Why A Local Cash Buyer Might Be Best
- Fast Closing Process: Traditional real estate transactions can take weeks, if not months, to finalize. In contrast, cash house buyers can close deals much faster, sometimes in as little as a week. This speed is especially beneficial if you’re facing foreclosure and need to sell quickly.
- No Need for Repairs or Renovations: When selling to a cash buyer, you can sell your property “as-is.” This means you don’t have to worry about fixing structural issues or making cosmetic improvements. The cash buyer will take on those responsibilities after purchase.
- Assured Sale: Unlike traditional buyers who might back out at the last minute due to financing issues, cash house buyers already have the funds available. Once they agree to buy, you can be certain the sale will go through.
- No Commission Fees: In a traditional sale, real estate agents charge commission fees, which can be a significant portion of your home’s selling price. However, when dealing with a cash house buyer, there are no commission fees, which means more money stays in your pocket.
Preventing Foreclosure With A Cash Offer From A Local Cash House Buyer
In the face of foreclosure or short sales, there’s no need to feel overwhelmed or alone. Solutions are available, and with the right help and guidance, you can navigate through this complex situation successfully. Among the various options available to you, selling to Premier Property Buyers stands as a compelling choice.
Why? We at Premier Property Buyers offer an efficient, hassle-free, and straightforward method to sell your home, even amidst financial difficulties. Our team of experienced professionals is ready to work with you, understand your unique circumstances, and provide a tailored solution.
Choosing to sell to us means you’re choosing a faster sale, with no commissions or hidden fees, and the opportunity to sell ‘as-is,’ saving you from repair and maintenance costs. Most importantly, you are choosing peace of mind. Our proven track record and our commitment to fair, transparent dealings make us a trusted choice for homeowners like you in Southern California.
Remember, the power to change your situation is just a phone call away. Reach out to us at Premier Property Buyers today. We are here to help and provide the support you need during this challenging time. Let’s work together towards the quick sale of your home, helping you step into a more secure financial future. To get started, simply call us or fill out the form on our contact page. We’re looking forward to assisting you.