Foreclosures are messy financial disasters, and they should be avoided at all costs. Millions of families have found themselves in this seemingly inevitable situation with few strategies for making it stop. It is possible to Stop Foreclosures. It is certainly not easy, but it can be done by applying a few approaches. The below offers some insight and will get the brain reeling about how to Stop Foreclosures, and how to move on from this mess.
Bankruptcy
The most obvious and immediate strategy is through a bankruptcy. This is usually the most recommended strategy because it is all encompassing- leaving nothing behind while a family moves on cleanly. There are some concerns, such as massive credit reductions that could have lasting effects. But bankruptcy is the most thorough way to go, especially if the foreclosure is extremely far along and the home is upside down to a considerable degree.
Cash Buyers
Interestingly, it is possible to find a cash buyer. The buyer will buy out the remaining settlement with the bank and stop the property from going through foreclosure. This is more possible in a pre-foreclosure status, but it is not unheard of for a cash home buyer to step in and close with a bank in a foreclosure. It stops the process, protects the credit of the homeowner, and is usually as clean as a bankruptcy without the credit damage.
Short Sale
A short sale can come in many forms. The most basic way to describe it is pushing a property to market and looking for an offer that can go forward with the bank. A short sale does not have to be a cash offer. Sometimes, a bank will accept new financing or a lease-option including an assumption of deed. What this all means in detail is that someone will take over payments and the foreclosure process if necessary. It is less clean than a quick cash buyer that accepts full payment upfront.
The foreclosure process is not inevitable. Cash buyers, short sale options, and bankruptcy can ultimately do a lot more than simply stall the process. With some quick thinking, a homeowner can potentially salvage the entire affair and move on with his or her chin held high.
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