Avoid Foreclosure in Nashville is still very valid even with the housing market at its all-time high. Many people in Nashville and surrounding areas like Columbia, Shelbyville, Murfreesboro, and Nolensville are still struggling to make their mortgage payments. How do I know? I get their phone calls and hear their desperate cries for help.
If you’re underwater on your house or having trouble keeping up with your monthly mortgage payments, your mortgage provider may be preparing to foreclose unless you can stop it right now.
Thankfully, there are a number of things that you can do to avoid foreclosure in Nashville. It’s important to remember that moving quickly is absolutely paramount and could save your credit rating and your home. Every day is critical, every day your late payments generate additional interest and penalties. A full foreclosure can almost destroy one’s credit with an 80 to 150 point drop! You may want to read our in-depth article on the foreclosure process in Tennessee.
So let’s dive in on a few quick tips on possibly how to avoid foreclosure in Nashville with your home.
The Keys of How to Avoid Foreclosure in Nashville: Don’t Abandon Ship
Some people simply give up and walk away from their houses. You have seen the properties, windows cracked, grass and weeds knee-high, foreclosure stickers on windows and doors, and the whole house just looks tired.
This is a stressful situation, but it’s extremely important to keep your wits about you and think clearly. A foreclosure will have a huge negative impact on your credit score, and likely prevent you from purchasing a home for years to come. Foreclosure can have a lasting effect on your financial life, and it’s important to move quickly and take advantage of any options available. The first few things you must do are:
- Open all letters from the lender and see where you are in the process
- Read your mortgage documents – understand what to expect when you miss payments
- If you have received any notices of non-payment from the lender, seek help
- If you ignore notices & pending legal action letters you are in trouble
Here are some key points to guide you.
1. Work with The Government
In Tennessee, the state housing agency may be able to assist you with a foreclosure avoidance program if it’s not too late. The Federal Government’s HUD, Housing of Urban Development) may have a few counseling programs available to guide you. These programs are based on the amount you owe on the loan and the current value of the house and with counseling to help you understand the financial situation.
2. Negotiate with Your Mortgage Lender
Banks know if you are in financial hot water by observing your payment history. The same goes for credit card institutions and the bank you use for your checking account. Talk to your mortgage lender and tell them your situation. If it is early in the process the mortgage lender may work with you on a very short-term period to reduce your mortgage payment (forbearance) for a couple of months so you can catch up. It may be possible you can refinance your loan and pay off your late payments. This is a very expensive move because your closing costs could equate or be more than your late payments.
If you are several months behind, lenders are not in a position to help you. The banks don’t want to foreclose on you, but they don’t want to lose money on their investment either.
2. Spend Wisely
This is key because most people get into difficult situations because of overspending, particularly with credit cards. Dave Ramsey’s programs offer sound advice in paying off the smallest card first and continue until all credit cards are paid off and the cards destroyed.
Other ways of saving are to cut out expensive foods, restaurants, entertainment, upgrading your cable, or owning expensive cell phones. Another approach is to work a second job to pay off debt. A painful option is to sell your valuable furniture or jewelry or even extra cars and other property. People suffering from job loss or huge debt from illness can also use these approaches to cut out expenses and begin paying back the late payments.
3. Rent Your House
Some homeowners are able to rent their houses to others while they move to a lesser expensive home. Another option is to bring on a roommate or two by leasing out your extra bedrooms. Their rent payments to you may be enough to offset your mortgage and help you avoid foreclosure. The downside of renting is the extra wear and tear on your house, or you get bad tenants and have to evict them. This can be very uncomfortable. You have to decide upfront if you feel safe with strangers moving into your house with you.
4. Sell Your House
We understand that the possibility of losing your home can be stressful. You aren’t alone. Homeowners all over Middle Tennessee are going through the same troubles. Sell your house to avoid foreclosure will end the problems with the banks. A real estate agent may be able to sell your house fast, but still, it is a minimum of 1 to 2 months after you have cleaned, repaired and prepped your house to sell on the open market. The realtor also charges commissions and fees.
Selling your house as a For Sale By Owner or FSBO may be an option if you only had the time to prepare everything plus gather all the documents needed to list and sell your house. Marketing a house is not easy and is time-consuming. If you are behind on house payments, these options are probably not doable.
Selling your house to a local professional investor or direct house buyer will be the fastest way to sell your house. An investor will visit your house, evaluate the condition and repairs needed, then make you a cash offer with a closing time of your choice. Even if you are 2, 3 or even 4 payments behind, the real estate investor can save you from foreclosure and reduce the damage to your credit.
We at Southern Homes Investments may be able to help you avoid foreclosure… connect with us today and let’s discuss your situation. We don’t charge any fees or commissions… we’ll evaluate your situation… and present you your options so you can move forward and get this foreclosure behind you. We even pay your closing costs to help you further. We stop foreclosure Nashville and the surrounding areas of Middle Tennessee. Give us a call at 615-235-0612 or visit our website at SouthernHomesInvestments.com to learn more about our company and how we help homeowners just like you. This article describes how we work with homeowners faced with foreclosure, “How to Sell House for Cash in Middle Tennessee – Advantages of Working With Southern Homes Investments.”
Give us a call anytime at 615-235-0612 – we like to talk to you about your situation or
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David Wright is a licensed real estate agent in Tennessee and this article is not a solicitation to list your house.