Stopping Property ForeclosureAs per the federal law, you get four months to bring your loan current. The lender cannot initiate the foreclosure process unless at least four months have passed since non-payment. However, banks can continue to send you reminders after you miss the first loan installment. The process afterwards varies from bank to bank. Most foreclosures in Utah are non-judicial, which means court involvement is not needed. Timing is the identifying characteristic of non-judicial foreclosures.
Sell your home before foreclosure
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Selling Your House Before ForeclosureIt can be devastating to go through this experience. When you are bombarded with harassing phone calls and letters, it can be challenging to think straight. You need someone who can help you make sense of the situation and also advise on the best strategy. Connect with a reputable real estate solutions company for a free consultation. The company will guide you in the right direction. For example, even in the pre-foreclosure phase, you might be able to reinstate your mortgage. You might be eligible for a secondary loan. It might be possible to get some time. At other times, you can win the situation by selling your house. You can save your credit history and deal with the circumstances. You can arrange a private sale of your home, pay your debts, and move on with your life.
Lenders Prefer Sale Over ForeclosureForeclosure is almost always an expensive option for the bank. Lenders earn money when you keep paying your mortgage installments. They stop seeing the profit when you stop sending the payments. A certain number of foreclosures can restrict a bank’s lending criteria, and it costs a great deal of time & money to auction a house. For this reason, banks are interested in negotiating a short sale. Because of the same reason, banks are willing to give you a mortgage modification program. A short sale is an available option if you have negative equity in the house. Your home must be underwater before you can be eligible for a short sale. If you successfully negotiate a short sale, the lender will:
- Forgive a portion of your debt
- Not pursue a deficiency judgment after the sale