Life happens. Sometimes, you miss mortgage payments. It can be scary when avoiding foreclosure becomes your top priority.
When late notices pile up, it’s easy to ignore them. But that won’t help. You might wonder how long you can stay in your home before the lender forecloses. Then, how long until they make you leave?
Don’t ignore the problem. Be proactive. Stay in control of your situation.
Options for Avoiding Foreclosure
We at kcmoHomeBuyer buy homes in various foreclosure stages. We advise you to not ignore notices from the bank. Call them immediately. Banks have specialists to help you find solutions. They have access to government programs to help you catch up on payments. They can delay the process to give you time to sell your house. Whatever you do, don’t wait until it’s too late.
Can I Sell My Home if I am in Foreclosure?
Yes, selling your home during foreclosure is an option. Acting quickly allows you to list, market, and sell your home before the sale date. However, every day you wait adds late fees and legal fees, making it harder to sell. Talk to your lender. They may waive or reduce these fees to facilitate the sale.
Steps to Take if You Are Behind on Your Mortgage
- Contact your lender: Explain why you can’t pay and whether it’s temporary or permanent. Provide income, expenses, and asset details.
- Counseling agency: HUD-approved agencies can help for a fee.
- Open your mail: It contains valuable information and legal notices from your lender.
Options to Help You Keep Your Home
Government-backed loans often require lenders to offer ways to work out missed payments. Here are some options:
- Special Forbearance: Temporary reduction or suspension of payments with a plan to make up missed payments.
- Mortgage Modification: Permanent changes to the loan, adding missed payments to the balance, possibly changing the interest rate and term.
- Partial Claim: FHA-only loan to cover missed payments with zero interest, paid when you sell your home.
- FHA-HAMP: FHA program reducing the loan balance and modifying the loan to lower monthly payments.
You must qualify for these programs.
What If I Can’t Work with My Lender to Keep My Home?
If your lender’s programs don’t work, consider selling your home:
- Traditional Sale: With current high home values, you may sell, pay off the mortgage, and avoid foreclosure.
- Investor Sale: Cash buyers like kcmoHomeBuyer can purchase your home quickly without fees or commissions.
- Short Sale: If you owe more than your home is worth, your lender might let you sell it for less than you owe.
- Deed in Lieu of Foreclosure: As a last resort, give the house back to the lender.
These options may have tax consequences. Consult a tax advisor.
When Does the Foreclosure Process Start?
The timeline depends on your lender and state. Generally, lenders start after three missed payments. You’ll receive a demand letter, giving you 30 days to pay. If unpaid, legal fees add to your balance.
In Missouri, the process can be as short as 21 days. In Kansas, it takes 4-5 months, with an additional 90 days to a year for redemption. Once the auction is complete, the lender or buyer will want you to move. Some may pay you to leave, or they might evict you as a last resort.
Selling Before Foreclosure
The pre-foreclosure period is the best time to sell. You have time for:
- Minor repairs
- Cleaning and staging
- Working with an agent
- Avoiding severe credit impact
Selling too late limits your options and might force a quick sale to a cash buyer.
Selling After the Foreclosure Process Starts
Even if foreclosure has started, you can still sell. If facing a long-term change in circumstances, selling might be best. In 2022, high home values mean you might have equity to pocket after selling.
Next Steps if Facing Foreclosure
- Find your home’s worth: Use online tools or contact kcmoHomeBuyer.
- Figure what you owe: Include principal, interest, late payments, fees, and legal costs.
- Determine selling costs: Consider cleaning, repairs, marketing, commissions, and closing fees.
Calculate potential proceeds: Value – Fees – Costs = Money to You.
Contact a Home Buyer
If time is tight, consider a cash home buyer like kcmoHomeBuyer. They can buy quickly, without cleaning or repairs, and charge no fees. This may save you money by stopping late and legal fees from increasing.
At kcmoHomeBuyer, we offer two options: a fast cash offer or a Realtor listing selling your home as-is. Compare both and decide what’s best for you.
Stay in Contact with Your Lender
It’s crucial to keep your lender informed. They might slow or hold off the process, giving you time to sell. Ignoring them could accelerate foreclosure.
Can I Stop the Foreclosure Process?
You can stop foreclosure at any point by paying off or arranging with the lender. However, all fees, including legal, must be paid.
Selling a House in Foreclosure
Selling time depends on your home’s condition, price, and exposure. A traditional sale can take 90-120 days. Unknown factors can cause delays. If time is short, a cash sale might be the best option.
What About a Short Sale?
A short sale is possible if you owe more than your home’s value. Lenders may allow this but could pursue the remaining amount or issue a 1099, creating a taxable event.
What If My Home is Foreclosed?
In Missouri, the new owner might contact you soon after the auction. In Kansas, there’s a redemption period. After this, the lender or buyer will want you to move. Options include moving out, cash for keys, or eviction.
What If I Still Owe Money After Foreclosure?
If the home sells for less than owed, the lender might seek the difference. They can obtain a judgment against you to garnish wages or bank accounts. If the home sells for more, they may owe you the excess.
Don’t Wait – Take Action Now
- Call your lender to explore options.
- Find out what your home is worth and what you owe.
- Talk with a Realtor about selling options.
- Get a cash offer from a professional home buyer.
At kcmoHomeBuyer, we help with all these steps. We provide home value assessments and offer cash deals. Know your options to make informed decisions.
