Suffering through a potential foreclosure of your home is a devastating event that will have far-reaching effects on your financial, physical, and even mental well-being, well into the future. It is not a situation that you should take lightly. Today we look into the impact and potential solutions if you are facing a forclosure.
Foreclosure and Its Impact
The consequences of foreclosure will have long-reaching effects that carry over into your personal and financial life for many years. If you even qualify for any type of credit moving forward, while a foreclosure is on your credit report, you will pay the elevated interest levels due to the perceived risk you now pose as a borrower to any lender. While that may not be an issue for you now, it will certainly limit your financial options moving forward.
A Foreclosure Will Limit Your Options
As life becomes more expensive, this strike on your credit could potentially force your standard of living in a downward direction. Housing is becoming more difficult to attain as it becomes less and less affordable. Adding a foreclosure onto your credit report will not only impair the potential to buy a home well into the future, but it could impact your ability to qualify when submitting a rental application.
More and more landlords are requiring a credit check as part of their qualification process. Most landlords understand that many people are experiencing especially difficult circumstances in 2021. But never forget that they want to rent their property to people who are likely to fulfill their obligations. and have a history of doing so. A foreclosure will at the very least raise questions ion their mind requiring answers as they perform their screening process.
The Emotional Toll
As much as a person would like to, ignoring this devastating experience will not make it go away. The stress of the foreclosure process also takes a devastating emotional toll. There will be uncertainty, helplessness, and overall loss of control as you are left wondering when the lender will repossess your house and force you to remove your belongings.
Sadly, a foreclosure could still put you in a position where you owe the debt remaining on the property as well! This will vary based on your individual circumstances and the province where you reside. If you have not consulted legal aid or a lawyer, get some professional help and guidance.
So if you have already received a foreclosure notice, this is not the time to allow yourself to bury your head in the sand and run from that feeling of being overwhelmed. Take this notice as one last opportunity to turn things around and try and reverse or limit any further damage. Avoid letting your emotions take control. It is vital you keep the lines of communication open with all parties involved in the process. Despite your resentment for any bank, financial institution or lawyers involved, you need to stay in constant contact.
Being forewarned is forearmed. If you want the possibility of preventing the lender from foreclosing on your home and avoid facing all of the negative backlash, including the housing debt still being owed, you will need to educate yourself about foreclosure and what you can do to stop it. What can be done? Read further for possible solutions.
If the prospect of foreclosure was the only hurdle you were facing, your predicament would not be so difficult to overcome. But typically stopping foreclosure is but one of several issues you are trying to overcome.
Ever had a roommate? You may have thought those days were long gone. While having a roommate isn’t the optimal scenario you may have envisioned when you pictured homeownership, it may be one potential solution out of your current dilemma. Or it may just buy you some additional time to get through this rough patch. While fretting about being able to pay your mortgage every month is not ideal, the additional income from a tenant could be the answer you are looking for.
Maybe you have a relatively private living space within your home, such as a basement. Does it have a small kitchen and bath? That would help. Maybe renting out a bedroom is all you have to offer. Regardless, this scenario will require some sacrifice. Consider renting out some space so you can bring in more income.
If you are in a townhouse or condo, you will need to verify that your housing circumstances allow room rentals. You should also check your insurance policy to ensure that the rental of rooms is allowed and won’t raise your rates dramatically. Finally, you must consider your personal safety. This is something only you can do. So please consider your family’s needs, the space you have to offer, and whether it can work. Taking quick action by getting a roommate or tenant to help with cash flow and bills is one way to stop foreclosure in its tracks.
Desperate times call for desperate measures. When your personal situation suddenly changes, you must take account of your assets to find any valuable items you have gathered during your life. If you are facing foreclosure, a potential fix to stop the process is to liquify some of your assets. This is a difficult step that you must decide on your own.
Will you sell precious valuables and collectibles to avoid foreclosure? The choice will be yours but we always suggest consulting professionals to make the most informed choices.
(Please ask yourself, “Do I keep some of my possessions and lose the house because I am not willing to part with them?” Only you know your priorities, values and how dire your situation is. But once again I would suggest getting legal advice because every situation is unique and what you can keep and what you must declare will vary by province and whether you are declaring bankruptcy or just experiencing a foreclosure).
It is better to act swiftly. That way you will allow yourself more time to find the right buyer for any asset of value. Because no matter what the value of an item is on paper, it is only worth what someone is willing to pay when you are wanting to sell. Taking this route to catch up on your mortgage payments, save your home and avoid foreclosure may be painful. But for many homeowners, their first step to fight off foreclosure is by withdrawing funds from less sentimental assets, such as savings accounts, RRSP’s, or other assets.
It’s so tragic, but some borrowers must sometimes sacrifice even precious family heirlooms and cherished possessions to resolve their financial woes. It may be time to look into the top shelf of your closet and dig out those valuable collectibles. You may even want to consider selling your baseball card or comic book collection from childhood. But before cashing in, do your homework and check with at least 2 potential buyers. That way you are sure to receive the highest value for your prized possessions.
A Final Solution?
Do you want foreclosure help to stop your worries today? While there are no guarantees, you can potentially stop a foreclosure in its tracks by working with Sunrise Home Buyers. Perhaps we can create some sort of win-win scenario, where you leave your home on YOUR TERMS and YOUR TIMELINE. WE HAVE DONE IT BEFORE.
Sunrise Home Buyers Can Help You Stop Foreclosure
It may be a workable option to sell your home to Sunrise Home Buyers who can possibly delay, solve, or even eliminate your foreclosure problems. Sunrise Home Buyers buys houses as they are, so you don’t need to worry about making repairs or even cleaning up for showings or open houses. You can simply pack up whatever you want to keep and walk away, leaving the rest to us. You see, we have bought several homes from homeowners with low or no equity in their property. It never hurts to have a conversation and see if anything can be done. We have many home buying tools in our toolbelt that can help you sell your house fast. One more conversation could well be the solution you need.
When you meet with a professional buyer from Sunrise Home Buyers, they will walk you step by step through determining the offer, and ensuring you agree the offer is fair. Sunrise Home Buyers uses simple, straightforward contracts. Sunrise Home Buyers doesn’t charge commissions and has NO hidden fees at closing. Sunrise Home Buyers makes the process extremely quick and as simple and hassle-free as possible. In most cases, you can close in a matter of days! And if you aren’t ready to move, Sunrise Home Buyers can work with you on the closing date. Sunrise Home Buyers makes it easy, handling everything with our in-house professionals from every walk of the real estate industry. Just call Sunrise Home Buyers at (587) 982-7576 or send us a message to learn more.
If you are behind on your mortgage or tax payments you will need to take fast action if you wish to avoid the foreclosure process altogether. Seek counsel from a wide range of professionals to make the best decisions. Might it be worth the time and effort of a single phone call to speak with SUNRISE HOME BUYERS to potentially avoid the lasting effects of foreclosure? Why not investigate your options because WE HAVE helped other homeowners STOP FORECLOSURE before.