How Can I Avoid
Foreclosure in Michigan
Foreclosure in Michigan
Foreclosure or even the threat of it is definitely a scary situation to be in. Here at We Buy Lansing Houses, we talk to people in these heartbreaking times almost on a daily basis.
Your mind is probably racing to try and come up with a solution to avoid foreclosure and keep you home. Luckily there are options to help you in this terrible situation, unfortunately keeping your property may not always be possible; but trying to save your it is always worth a try. Below are some options you may not have considered. If keeping your house is no longer an option or concern please contact us immediately, we can help!
Always remember that a foreclosure will affect your credit in one of the worst ways possible, and make buying anything without cash very difficult; especially a new home. In the best possible circumstance you will be able to get a new mortgage in as little as 3 years, but that is definitely not a guarantee; building your credit back up will be a long road; but people get through situations like this all the time.
Foreclosures happen to good people all the time
One of the thoughts we hear from troubled homeowners is they feel like they have failed, and it eats at them. Which is a shame; most of the folks we speak with are good people who fell into bad times.
Circumstances change for people every day. You could have been laid off or your job eliminated, maybe you were injured at work and you haven’t seen any compensation.
Regardless of the reason, if your income has suddenly been reduced and maintaining payments on your home has become impossible, preventing foreclosure can still be achieved.
The worst thing you could do right now is asking yourself
“How many months behind do I have to be before foreclosure”
The time to act is before you get the pink sheet of paper taped to your door.
Ways to Stop Foreclosure
It can be stopped once it has begun, but the best time to stop it is in the pre-foreclosure stage.
The first thing you should do when you realize that making your full house payment has become impossible is talk to the bank. Banks are in the lending business, not the property ownership business; they want to foreclose on properties about as much as you want to be foreclosed on; especially since the financial crisis.
This is why you have a great shot at working something out with them to keep your home. Talk with your lender and let them know your current situation. Sometimes you are able to refinance the loan at a lower rate and a lower payment. They might even offer you a loan modification, where they lower the payment and the principal on the loan. We have even seen banks allow you to miss a payment and just tack another month onto the end of the contract. This may be the only answer you need, just talk to the bank.
If you can’t work out a solution with the bank, you may be able to short sale the house. Which is basically the bank letting you get out of the loan by selling your home to someone new with terms that the bank approves. This still affects your credit negatively, but not as much as a foreclosure that’s for sure. Short sales take forever and there is no guarantee they will go through, so it may not be the right answer for you.
If you are facing Tax foreclosure, unfortunately the government is less forgiving than a lender. We still recommend getting in touch with the office foreclosing on it and trying to work something out. A lot of times the only way to save your home will be paying your back taxes ASAP. You might even be able to find a foreclosure assistance grant to help with the situation.
Plus a FREE Report on
How to Sell Your Home Within 5 Days!
If you can’t save your Home
If all else fails Contact We Buy Lansing Houses when you are in Foreclosure or even Pre-Foreclosure. If you have talked to the bank or the city and you realize this is not going to work, give us a call right away. Most of the time, we can bring your payments or your taxes current, and stop the process. We work with people just like you and get them out of foreclosure almost daily. You will be glad you called.