Central Valley Homeowners: How to Avoid Foreclosure
California’s Central Valley has seen the effects of a post-pandemic economy and major inflation. More and more homeowners throughout this region have been faced with some difficult decisions. Some are on the verge of foreclosure and not sure what they want to do. People in communities like Modesto, Stockton, Tracy and Merced are worried about losing their houses.
If this describes you, then it is very important for you to take action and do whatever is necessary to avoid foreclosure. There are steps you can take to potentially prevent a seizure of your home. Or, you can consider selling it while you still can to get the most out of a bad situation.
Contact Your Mortgage Lender
First of all, it’s important to understand that banks and mortgage lenders want to avoid foreclosure as much as you do. It costs them a lot of money in legal fees and real estate commissions to go through the foreclosure process and then sell the property at a discounted price. They generally lose money on the deal. Your first step may be to contact your mortgage lender/bank and see if there are any relief options available to you. You may be able to apply for mortgage forbearance, which allows you to delay mortgage payments for a specified period of time. Or, there may be some other sort of refinancing or assistance program that you qualify for because of your temporary financial distress. The point is they may be willing to work with you to avoid foreclosure.
This is a good idea if you are already getting pre-foreclosure notices or if you are just starting to fall behind on your monthly mortgage payments. Ask for help and you just may get it.
What if I Am Upside-Down on My Mortgage?
This strategy won’t work for everyone. It may depend on your financial history and how far behind you are on mortgage payments. Your home equity situation may also come into play. If your house is worth more than you owe on your mortgage, it will give you more options. Those who are deeper in debt and/or upside-down on their mortgages (owing more than their house is worth) may have fewer solutions available.
Another option to consider is selling your house while you are still able to. You should have this solution available to you as long as the official foreclosure process hasn’t begun yet. Your lender may offer you a short sale solution. Or, you may be able to sell your house quickly on your own. This may enable you to pay off what you owe on your mortgage—or at least as much as you can. You may even be able to come out ahead if you have strong equity.
Sell Your House for Cash
In this case, selling on the open market through a Realtor® may take a bit too long and will cost you some money in real estate commissions, home preparation, etc. You may want to work directly with a cash real estate investor who will make you a fair cash offer on your property. The price may not be quite as high as an open-market sale, but you will be able to close much faster. Investors are buying Central Valley houses like yours throughout Merced County, Stanislaus County, Sacramento County and San Joaquin County. They are buying houses in as-is condition, which means you don’t have to worry about home repairs and staging costs. They can close the deal quickly with an all-cash transaction. This allows you to move on as soon as possible and prevent the foreclosure process from happening.
If you are already facing foreclosure or worried that it may happen in the near future, don’t wait to take action. Be proactive about avoiding foreclosure in the Central Valley and think about how selling your house for cash could be your best solution.
To get a fair and fast cash offer from PropertyLark, please fill out the contact form to the right. We’ll get you a cash offer within 24 hours and we can close in as few as seven (7) business days. If you need more time to move out, we can work with you to select the ideal closing date. If a cash deal doesn’t make sense for you, we will help you explore other home selling or seller financing options. Just let us know how we can be of service!