Few things are more traumatic for families than the threat of foreclosure. You own your house and you like it – it satisfies all of your needs. Nonetheless, foreclosure may appear imminent owing to unfavorable circumstances.
Stress may be nearly intolerable for local Arkansas families facing foreclosure. Worse, the foreclosure procedure can take months or even years, prolonging the agony beyond anyone’s desire.
Numerous Options Exist To Avoid Foreclosure In Arkansas.
Fortunately, you have alternatives here in Arkansas – may be more than you think. These are legal foreclosure avoidance tactics that you may use to assist you in resolving your foreclosure situation and moving forward with your life.
You’ll learn three strategies for avoiding foreclosure in this blog post (there are other ways to avoid foreclosure as well). These techniques are designed to assist you in legally and morally avoiding foreclosure and alleviating the agony and aggravation associated with it, while minimizing any long-term financial commitment or load on you. While not all of these tactics will work in every case, you’re likely to discover at least one of the three that does.
#1. Agree On A Win-Win Deal With The Lender
The first approach is referred to as a “foreclosure workout.” In a foreclosure workout, you’ll meet with your lender and explain that you’re unable to make your current mortgage obligation but would like to work out a solution that allows you to remain in your home and continue paying your mortgage.
Contrary to common misconception, lenders are not in the business of foreclosing! Because lenders desire satisfied customers who pay their mortgages on time, they are frequently prepared to engage with homeowners to work out a solution. This may involve a short respite on your mortgage payments, a catch-up approach in which your outstanding mortgage payments are spaced out in order for you to catch up and pay them off, or a restructuring of your current debt.
#2. File For Bankruptcy
While declaring bankruptcy may seem drastic, it is one of the “weapons” in your foreclosure prevention toolbelt. When you declare bankruptcy, you are informing all of your creditors that you are unable to pay your debts. Filing for bankruptcy will halt the foreclosure process since all creditors are required to halt collection efforts.
However, for many, filing for bankruptcy is a step too far. Bankruptcy can have far-reaching financial consequences. It may oblige you to liquidate some of your possessions in order to repay your creditors. Additionally, a bankruptcy will remain on your credit report for many years, affecting your ability to obtain a loan, a car, or even a job. As a result, this should not be your initial line of defense!
#3. Short Sale Assistance To Avoid Foreclosure In Arkansas
The third method is a short sale, in which you sell your house and apply the money to the balance owed on your mortgage debt. Short sales are chosen by homeowners facing foreclosure because they are proactive, quick, and extremely successful.
- It’s proactive, which means you take charge of the situation (a significant stress reliever, since much of the tension associated with foreclosure stems from the process being entirely out of your control).
- It’s quick – in certain situations, it might take as little as a week to sell your property! That’s also because it’s local: You may obtain foreclosure assistance in Arkansas, as groups such as Little Rock Property Buyers assist individuals going through short sales.
- It’s extremely effective since a short sale can totally eliminate (or almost eliminate) your mortgage debt. If there is any balance remaining after the property is sold, you will be accountable for it (although you can sometimes work out a deal with your lender).
While a short sale still results in the reality of having to vacate your house, there is a silver lining: the damage on your credit is far less (in comparison to bankruptcy or foreclosure), making this a prudent long-term move to allow yourself some choices.
If you would like more information on a short sale to avoid a foreclosure here in Arkansas, contact Little Rock Property Buyers today at 501-580-3035.