Foreclosure is one of those words that no homeowner wants to hear, especially when you are looking to sell your house. If you are looking to avoid foreclosure Chattanooga, you can look at a few different options to try and get out of your current situation. To determine what your best option is, you will need to first understand why foreclosure is something to avoid at all costs.
The trouble with foreclosure
Foreclosure is something all homeowners worry about, but many are unaware of what it truly means. When you agree to pay for your house, the bank uses your house as collateral in case you can’t make payments. Because of this, failure to pay the bank for your house can result in them sizing your house and leaving you out to dry. Not only can you lose your home, but your credit score can also see serious damage if you face foreclosure which will only make getting a future house even harder. If you want to sell your house with foreclosure, there are thankfully a few things you can do to deal with it when selling.
Dealing with foreclosure when selling
Asses your options
Before panicking and thinking that you are all out of luck, take a step back and assess the situation. Just because you are facing foreclosure does not mean that you can’t do anything to fic the situation. Whether it is with your bank or with someone else, you will always have some way to fix the situation.
Extend your loan
If you want to sell your house and foreclosure is currently looming overhead, you may be able to extend your loan. Extending your loan is not always an option, but it can get you out of a temporary rut if you are going through rough times. While this may seem like a quick fix, it is only putting off foreclosure if you are unable to make future payments.
Sell your house
Just because your house is going to be foreclosed upon does not necessarily mean you can’t sell it. If you are unable to pay off your mortgage, you can initiate a short-sale where you sell the house for less than it is worth to reach the difference between the value of the house and what you still owe. This is not a great option as it can also negatively affect your credit score and will ultimately have you losing money.
Get mortgage assistance
When you want to sell but need help with your mortgage, you can always look to mortgage assistance programs to help you out. To avoid foreclosure Chattanooga, look to Favor Home Solutions to help you and your credit get past tough times with their credit saving mortgage assistance. Reach out at 423-509-8686 today to see how they can help you get back on your feet and prevent your credit score from being damaged by the entire ugly foreclosure process.