The final phase of foreclosure is not a sudden event; there is a lot of warning before the lender implements the process. Ignoring your financial problems and hiding your head in the sand are the worst things you can do. Rather, you should always take a step back and understand all your options before making a decision. If you receive a notification, there is no better time to act. Failure to act will have serious consequences.
The risk of being evicted from the property at a moment’s notice, which in itself is stressful, is compounded by the possibility of losing any equity in the property. Unfortunately, you could still be responsible for the remaining debt on the mortgage as well. Besides the damage to your credit, the repercussions of foreclosure extend beyond your credit history and may impact your employment prospects. In addition to adversely affecting your housing options, a foreclosure will also prevent you from obtaining a Fannie Mae mortgage for seven years.
Here are five ways to stop foreclosure in TN.
Negotiate
Negotiating with the lender before proceedings begin is one way to stop foreclosure in TN if there is still enough time. Your lender may be more open to negotiating with you than you may believe. As foreclosures can take years 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 programs in place that you may qualify for that could offer assistance in times of hardship.
Short Sale
If you have defaulted on your mortgage loan, a short sale is another way you can stop foreclosure in TN. 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.
Bankruptcy
Filing for a chapter 13 bankruptcy may be a way you can stop foreclosure in TN. For example, suppose you have overcome the circumstances that interrupted your income stream, 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 payments on the arrearage, 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 TN, 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.
East Tennessee Home Buyers LLC
Selling your home directly to East Tennessee Home Buyers LLC may be the best way you can stop foreclosure in TN. 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 East Tennessee Home Buyers LLC 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 are happy to arrange a leaseback at fair terms; the direct buyers at East Tennessee Home Buyers LLC will work with you to help make the transition as smooth as possible for you and your family. Selling directly to East Tennessee Home Buyers LLC 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.
A direct buyer from East Tennessee Home Buyers LLC 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 East Tennessee Home Buyers LLC because we want you to feel good about the deal long after closing. Why not see how much East Tennessee Home Buyers LLC will pay for your house right now, as-is for cash? Contact East Tennessee Home Buyers LLC today at (865) 935-8680. phone].