6 Things You Can Do to Stop Foreclosure of Your House

by Sep 10, 2020

Foreclosure is every homeowner’s worst nightmare, but with job insecurity and the uncertainty of Covid-19, it’s becoming more and more prevalent.  Don’t just give up, though; in our most recent post, we covered the basics of how foreclosure works and how you can avoid it.

Get in First and Sell

A quick, direct sale is frequently the best route to stopping foreclosure of your house in San Antonio.  Letting your house go may be a difficult decision. Still, if you can sell your house quickly and safely to a professional house buyer, like Mr. G Buys, you will save on commissions and all the additional expenses involved in marketing and selling your home.  You no longer be liable for holding costs like taxes, utilities, and the like, which should give you breathing room to decide on the way forward, and get cash in your pocket.

Be careful; there are some unscrupulous buyers out there who will take advantage of the urgent sale, so dealing with a professional to get a fair price is essential.

Get a Loan

Taking out a loan and settling your arrears is a quick way out, but unfortunately,  it’s usually a temporary one.  Unless you have another property or business that you can sell to cover the loan, you are going to be building up interest and very likely just delaying the inevitable.  A loan from a family member, with low or no interest, would be better, but please be sure that you will be able to repay it first.  Money lending in families can cause terrible stress and broken relationships when it can’t be paid back.

Make a Payment Plan

Before rushing into anything, talk to your bank or bondholder.  If your troubles are temporary, they may be willing to re-negotiate terms, making it possible for you to have a temporary break, or extend the period of your loan.  This option only works if your situation is temporary. If your financial situation is not guaranteed to improve within a short period, then you could dig yourself into a bigger hole by taking advantage of the terms because they will accrue.

Refinance

You may have heard of refinancing before.  This option is when you approach another lender for financing and use that to settle to your current debt.  This decision can, however, be extremely costly in the long-term.  

Rent Your Property Out

If you have a family who can take you in, or if you can afford a smaller place to live, you could consider renting your home out to someone who can afford the monthly payments.  Make sure, though, that your prospective tenants are reliable and can afford the rent.  Renting to chancers is probably worse than losing your home to the bank.

Declare Insolvency

This option should be your last resort.  It may save your house, but will negatively affect your credit rating going forward.

When foreclosure is threatening, the options are not great, but at least there are some answers.  We suggest that you get an offer from Mr. G Buys quickly, then weigh up your options with this as a benchmark.