California homeowners facing financial challenges may find themselves in foreclosure.
Foreclosure occurs when the mortgage loan is not repaid and the bank initiates the process of taking ownership of the property to compensate for its loss.
If you find yourself entering the foreclosure process, you may be wondering if there is anything you can do about it.
In this blog post, you will read about some of the foreclosure prevention measures in California that you can take to protect your home from foreclosure.
California Houses Foreclosure Prevention Measures
These foreclosure measures may not work in your situation, but we will tell you about them so you can decide for yourself:
1. Pay your Mortgage / Sell your Property
The fastest and easiest way to complete the foreclosure process is to pay off your mortgage.
After all, this is what banks want first, so they will be happy to let you stay in your home and they will get their money back. Of course, this is not always possible, so you are in foreclosure in the first place.
2. Deal with your Bank
Sometimes you can make a deal with your bank where you can sit down with a mortgage or foreclosure expert and talk to them about changing the structure of your mortgage.
For example, your payments may be stretched, so they may be lower each month. Make sure the deal works for you – you do not want to repeat the process.
3. Make a Short Sale
A short sale is when you sell a property and use the proceeds of the sale to pay or repay the bank. This will keep the foreclosure from affecting your credit score and it will clear the bank from your back!
4. Give your Deed in Return
Another option would be a deed instead of a foreclosure. That means that you will hand over your home to the bank and they will agree not to keep you through foreclosure.
This often works if your home is equal to the mortgage amount. If not, the bank may continue to make a difference.
5. File for Bankruptcy
In some ways, bankruptcy is more dramatic than a foreclosure because it affects your entire life. However, once you file for bankruptcy, the foreclosure process must be stopped, so this is still a foreclosure action.
If you do not know what to do with it, consider this: If you can afford it and you want to stay home, foreclosure dealing with your bank is probably your best choice.
If you want to keep everything behind you and continue your life, think about selling your house and paying off your mortgage with that money.
Wrapping Up: Thinking of selling your California home?
We buy homes in California for cash and would love to see if we can help you during your short sale. Contact us by filling out the form on this page and we will see if we can work with you.