As a homeowner, foreclosure is something you never want to experience. While nobody wants to admit to the reality of a foreclosure, it’s better to face it head on so you’ll know what to do to minimize its effects on your finances.
What Is Foreclosure?
Taking possession of and selling the mortgaged property is how a lender legally attempts to recoup the money owing on a defaulted loan. Usually, a borrower enters into default when they fall behind on a pre-determined amount of payments each month, but it is also possible when they violate other conditions outlined in the mortgage instrument.
If you find yourself in foreclosure, before attempting all foreclosure law remedies available to you in Lexington, KY, you can try negotiating with your lenders first. Call your lender right away to discuss your alternatives, which may include a loan modification, forbearance, or a short sale, if you are in danger of going into foreclosure. If all else fails, you can always sell your Lexington, KY, house fast in pre-foreclosure.
If you find yourself thinking, “How do I sell my house in foreclosure in Lexington, KY?” you’re on the right page. Here at Rylo Homes we share some valuable tips on what you can do with your Lexington, KY property when it’s at risk of foreclosure.
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Talk or negotiate with your lender
You must reach out to your lender as soon as you realize you need more time to catch up on payments. The last thing you want is to leave your lender out of the discussion when you begin to fall behind on your mortgage. Many lenders are actually more than eager to work with their clients to achieve a solution when it comes to foreclosures. This is because they would prefer to receive some repayment of their debt than none at all. Ask your lender whether they are willing to make any changes to your loan when you speak with them.
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Ask for a grant of forbearance
You might not be able to make mortgage payments on time due to a short-term financial problem, such as a medical emergency or a sudden, unforeseen loss in income. Your lender might agree to help by offering you a forbearance if they think you have a good explanation for the missed payments. Your lender may agree to a repayment plan that temporarily reduces your payments—or even suspends them for a predetermined period, depending on your financial situation. However, you must assure your lender that you will strictly adhere to the new repayment schedule, otherwise they might not agree.
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Request for a mortgage modification
You can refinance or lengthen the term of your mortgage debt through loan modification. Depending on your financial situation, the lender might accept monthly mortgage payments. To be eligible for this option, you must convince your lender that your financial issues will soon be resolved. The lender may demand a lump sum up front or agree to a monthly installment for the difference if there is a deferral plan agreement that places the entire or partial amount of the arrearages at the conclusion of the loan.
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Do a short sale
When an owner sells their home but owes more than it is worth, it is known as a short sale. You must get your lender’s consent before executing a short sale, though. While a short sale may give you the cash you need to pay off your debts, you should exercise caution. For many borrowers, short sales are unfavorable because they can hurt one’s credit score.
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Sell your Lexington, KY property fast to a cash home buyer
Selling your house to an experienced cash home buyer is another option you might want to think about. Cash home buyers are prepared to purchase properties in any condition, even foreclosure. You can receive a reasonable cash offer from a cash homebuyer in as little as 72 hours when you sell your house to them, giving you the funds you need to pay off your debt. Additionally, Kentucky foreclosure rules provide that you are entitled to keep any extra money from sales once your loan has been repaid.
If you want to sell your house in foreclosure in Lexington, KY, for the least effort possible, selling to a cash home buyer in Lexington, KY, is your most reasonable option. Rylo Homes buys houses in Lexington, KY regardless of the condition or situation they are in, so you know you won’t have to spend on renovations or repairs to make your home more marketable. We’re direct buyers and we pay in cash to arrange a quick close. For more information about our home buying process, give us a call at (502) 317-8553 today.
Media Contact
Company Name: Rylo Homes
Contact Person: Jon M.
Email: Send Email
Phone: (502) 317-8553
Address:18 Village Plaza Suite 154
City: Shelbyville
State: Kentucky 40065
Country: United States
Website: rylohomes.com