For homeowners who want to stop foreclosure of your Nashville house, the future can look pretty grim. In our latest post, we offer 6 ways homeowners can stop foreclosure of their homes in the Nashville area.
With job loss and job furloughs from the Covid-19 attack, has it become difficult to pay your mortgage each month? Are the bills piling up, with no end in sight? At some point, before the bank comes in and takes your home, you need to find a way out. Keep reading to learn more about what you can do and how Southern Homes Investments can help you stop foreclosure of your Nashville house. If you live in Springfield, Columbia, Spring Hill, Smyrna, or Murfreesboro these options still work. I might add, some or all of these options might be hard to swallow. But, if you are having difficulty making your mortgage payment, you need to make a hard decision now to stop foreclosure of your Nashville house.
In order to stop foreclosure of your Nashville house, a direct and fast sale is often the best way to go. Once you miss a house payment, you are now in Notice of Default, and your credit score took a hit. You are now on a clock with the bank. If you miss another payment or two you will be listed as pre-foreclosure with letters of alarms from the lender coming to you. One more payment missed and the bank will start the foreclosure process. Don’t let this happen. Your options have been narrowed and selling maybe your best option to stop foreclosure. You may want to read our important article “What Is the Foreclosure Process in Tennessee?” to see how late payments, Notice of Default, and how the foreclosure process can be better understood.
Once you know you are going to have difficulty going forward with more missed or late payments, selling will be your best option. It is your decision and you must make some hard choices based on how you can pay off the late payments, penalties, and late fees. Do not let your house go back to the bank and that is what foreclosure is!
Southern Homes Investments is a professional buyer in Middle Tennessee that will help you sell your house fast, stopping the banks ie., stopping foreclosure, and avoiding the destruction of your credit. Not all buyers are the same – Southern Homes Investments is dedicated to helping homeowners in difficult situations, providing fair solutions that make sense for all parties involved. While you may not receive the retail price, you will be able to sell in just a few days saving you thousands on commissions, repairs, and holding costs. Giving up your home can feel difficult, but it is better to sell by choice than to have the bank come in and forcefully take over the property.
For some homeowners, borrowing money from a family member can be a quick solution to stop the bank. However, this isn’t a long-term solution to your financial struggles. Plus you put your family member in a spot if things turn worse. If the mortgage has become difficult to pay now, it’s likely that it will be difficult to pay going forward. Getting into a pattern of continuously borrowing money will only get you into more debt, but this time it will be with multiple creditors. Borrowing money from loved ones can also strain your relationships with the people that you care about, making your difficult situation feel that much worse.
Ask For Lender Forgiveness (Mortgage Forbearance)
One option when you are struggling to make your mortgage payments is to reach out to your lender and explain the situation. In some cases, you will be able to defer a payment or work out a payment plan to make up what you owe. This is known as mortgage forbearance and is only a temporary solution. To read more about mortgage forbearance and other options to prevent foreclosure during the coronavirus, visit “What To Do When You Lose Your Job in Nashville.”
That said, you will still have to find a way to pay your debts. Deferring the problem will only push things back, it won’t magically get you caught up or erase the debt you are in. Asking for forgiveness is a one-time thing, to help deal with an unexpected situation… not something to bail you out long term. Loan forgiveness is also known as mortgage forbearance and is used after an illness, a loss, or anther one-off circumstance.
Refinancing your property can help you to achieve a lower monthly payment if you can’t or already have used mortgage forbearance, but there is a cost. If you choose to refinance with a hard money loan, your interest rates can be through the roof. While this may help you to save your house from the bank, it will ultimately cost you more money in the long run. You can also work with your current lender to refinance your current loan, however, you need to prove you will not have trouble with your payments going forward and you must be employed.
Rent The Property To Someone Else
If you aren’t able to pay the mortgage yourself, maybe someone else can. Of course, this means that you will need to quickly find somewhere else to live at a price you can more easily afford. You’ll first need to find high-quality tenants who you can count on to pay the rent each month. If your situation allows, you could also choose to rent out a bedroom in your home for some extra cash, while you continue to live in the home as well.
Just make sure boundaries are set on both sides so that everyone is comfortable with the living arrangements. Having the wrong people move in your house can cause you to default on your mortgage anyway, ending up with the same result of losing your Nashville house to foreclosure. A bad tenant can cause more physical damage to your home than what you might get in rents. I have seen so many issues with tenants like punching holes in your walls and doors, breaking appliances and the air conditioning system, letting water pipes freeze in the winter, and not reporting needed repairs and maintenance. So choose wisely.
Nobody is thrilled about having to declare bankruptcy, but in order to stop foreclosure of your Nashville house, it may be the answer you have been waiting for. Declaring bankruptcy will restructure your debt and create a payment plan to get you back on track. While this won’t look good when applying for loans in the future, it can be a way for you to keep your current home, stopping the banks in their tracks.
It’s your call from here. You can decide which measures work best for you. Bottom line is to be free of debt and worry. At Southern Homes Investments, we want to help you stop foreclosure of your Nashville house. Our team can help you review your options including mortgage forbearance and make you a no-obligation offer to help you sell quickly. Let our team help you quickly and efficiently handle any difficult property or situation you are dealing with.
If you are having trouble paying the mortgage, we can help you stop the foreclosure of your Nashville house! Send us a message or call Southern Homes Investments today! 615-500-4466
Disclaimer: David Wright is a licensed real estate agent in Tennessee and this article is not a solicitation to list your house.