5 Ways To Avoid Foreclosure In Sacramento

There is freedom from foreclosure, and we want to help you find that!

If foreclosure has been looming over you, the best way to avoid it is to face it. Take a deep breath and center yourself. You will get through it. It’s important for you to open the letters your lender is sending you and see where you are at in the process. Find your mortgage documents and read them through to know what to expect when you don’t make your payments. If you have just begun to receive issue notices of non-payment, that doesn’t mean they issued the foreclosure yet. But, if you ignore the pending legal action letters, it can lead to extra pressure and the court will be less-likely to see your situation in a positive light. Below, you’ll find a few ways to help guide you on the right track to avoiding foreclosure — you may still have time!

Work With The Government

We know, “work with the government,” sounds easier said than done. But, it is important for you to contact your state to learn more about the foreclosure time frame you are dealing with. When you learn the time frame and the different steps of foreclosure and compare that with what letters or other communication from your lender, this will help you determine how quickly you need to move to make sure you avoid the foreclosure. The Federal Government’s Housing of Urban Development (HUD) department has a handful of programs that may offer you a way out of your situation. A lot of these programs are determined on the home’s value versus how much is left on the loan. HUD also has counseling options available to help you understand your financial situation and what options may or may not work for you.

Spend Wisely

Simplifying your spending is another great way to help you avoid foreclosure. Take a detailed look at your finances and design a budget that will fit your basic needs like food, gas, necessary bills, and your mortgage payment. Skip the payments on optional or unnecessary items, like extra cellphone data or expanded cable packages. Skip eating out and find at-home activities to do to save on expensive outings. You may also want to consider temporary ways to make extra money, such as obtaining an extra job, or odd jobs that utilize a skill of yours — painting, design, strength, etc. You could also take a look at your home furnishings and sell the higher quality items to make a little extra cash. These options are great if you have a temporary hardship and are expecting to be able to make your mortgage payments more successfully in the next few months. They also help set you up for long-term success through gaining healthy spending and saving habits.

Rent It Out

You don’t have to be a property manager or career-landlord to rent out your house. Renting your house to someone else is a doable and creative way to help avoid foreclosure! Your tenant’s rent payment now becomes your mortgage and insurance payment. This would mean that you need to find another place to rent yourself that’s more affordable, but it can be a great way to get the extra income to pay the mortgage. If you aren’t interested in completely moving out, you could also rearrange your house to allow for a roommate, and depending on the amount of your mortgage payment, they might be able to pay a large portion of it to make it more affordable for you and fit better in your budget. However, you’ll want to consider that managing a tenant is an added responsibility and could lead to wear and tear on your home. Think through the pros and cons to make sure it’s the right fit for you.

Sell It

A very simple way to avoid foreclosure is to make a short sell and free yourself completely of the burden. There are many investors waiting for short sales to come on the market. This is where the bank will negotiate a sale price with a buyer and sell your house short of what is owed on it. Trust us, the bank does not want to own your house. They will usually take an offer that is close to the loan principal, even if the home is worth more than what is left. This makes for a great investment opportunity for buyers with cash on hand. Though this can be a tough decision to make, it’s an option that’s worth considering if you’d like to avoid the added responsibilities of the options listed above. 

At Laurel Buys Houses, we can help you navigate your options AND we’ll discuss the process of a short sale, so you feel confident in making the best decision for YOU. Call us at (916) 476-2381 or send us a message to discuss avoiding foreclosure with your Sacramento house.

Call Laurel Buys Houses at (916) 476-2381 or send us a message to discuss the short sale process with us and other ways to avoid foreclosure in Sacramento.

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