The internet is full of scams that promise to help you avoid foreclosure. There is a legitimate way to do this, but it is not a magic wand that will solve all of your financial problems. What it will do, is it will get you out of a monthly expense that you can’t afford, and stop your financial bleeding.
Even in the best of times, there will always be good, honest, hard working Americans that fall on hard times. Financial distress can happen to anyone. All it takes is a shock to your finances. A divorce, job loss, or medial issue will destroy the finances of most people. When that happens, it is very easy to fall behind on your mortgage.
What happens when you fall behind on your mortgage? Several things happen when you fall behind on your mortgage payments. The first thing is that you start getting those nasty messages from your bank. Nobody wants a call or letter from a lender reminding them that they haven’t been able to pay, yet the bank will send those out as soon as you start to fall behind. As much as that sucks, it is not the bad part. You bank will also notify the credit reporting agencies that you haven’t made your payment. This is where it all starts to fall apart. Your credit score takes an immediate hit, signaling every other lender on the planet that you are no longer eligible for any sort of loan. Your chance to borrow your way out of this problem has just evaporated. At the same time, the bank, in their most compassionate way, begins to impose late fees and penalties. As if this would somehow help you to make your payment. At this point, you start losing equity in your house because you are racking up late payment penalties faster than you can pay them down.
There are two ways to stop this death spiral before you lose your house, and destroy your credit. The first one, is to find some way to raise enough money to reverse the process. If that isn’t an option for you, you can still get out of this. You can still avoid the sheriff sale and all of the humiliation that comes along with it.
I don’t want to tell you that it is all rainbows and unicorns, you are still going to lose a house. What you can do is to preserve your credit, so that when your situation reverses itself again, you can once again buy a home.
Now here is what you can do. You can sell your house without a real estate agent. That alone will save you 6% of the sale price. When you are broke, you really need to do everything in your power to save money. Now, I said you can sell your house without a real estate agent. If you are going to go that route, you will need to engage a real estate lawyer.
The real estate attorney will be very important here. They need to handle all of the paperwork to keep this process legal. What you will do is to allow someone to take over your mortgage debt. There are legal ways to do this, and there are ways that will trigger the bank to call you loan due in full immediately.
The average home buyer will have no idea that such a thing is even possible, let alone how to do such a thing. A real estate investor is what you are looking for. A real estate investor can step in, make up your arrears and penalties, and start making payments for you.
Why would a real estate investor want to take over a mortgage debt? Simple, a real estate investor can take over a mortgage without having to drop a big down payment. They can also turn the house into a profitable rental quickly in order to minimize their out of pocket expenses. In exchange for being able to save you from the sheriff sale, the real estate investor will gain a good rental property without have to get a bank loan themselves.
If you have any questions about how to make this process work for you, just reach out to Josh Caldwell the real estate mentor – PittsburghREIA@aol.com