What’s the best course of action when you’re facing foreclosure in Michigan? This is a tough situation for any homeowner, and most solutions are going to be a little painful. But the sooner you get involved in fixing the problem, the better off you’ll be.
The last thing you want is for your lender to repossess your home against your will, but unfortunately that’s exactly what foreclosure means. To recoup their money from your unpaid mortgage, your lender has the right to auction off your house to the highest bidder.
So if you are getting default notices informing you that the pre-foreclosure process is beginning, the very WORST thing you can do is avoid responding.
To avoid losing your Metro Detroit home and severely damaging your credit, aim to work with your lender to stop the foreclosure process. It’s okay if you can’t make your mortgage payments (you’re definitely not the first person to be in financial distress) — do not let this stop you from reaching out to your lender! They will likely be willing to work with you, and the sooner you talk to them, the better.
Here are some ways to get ahead of the problem.
Short Sale Possibility
A short sale is when the mortgage lender allows the homeowner to sell for less than is owed on the mortgage. A professional homebuyer like us at Mitten Made Properties is a great place to start if you’ve been approved for a short sale. We buy homes fast (in as little as two weeks), as-is, for cash, and our offers are fair. Give us a call at (248) 883-3340 to learn more!
File for Bankruptcy
This isn’t the best option in the world, but if things have gotten pretty rough financially and you can’t see a way out, then you might consider filing for bankruptcy. This will stop the foreclosure process in its tracks (for a few months, at least). It will also significantly damage your credit score and make it more difficult to get loans for many years. After bankruptcy, lenders aren’t as willing to take a chance on you, and if you do get approved for a loan, your interest rate on any car, home, or credit card will definitely be much higher than it was pre-bankruptcy.
Secure Private Money
You could also try to secure private money to catch up on your mortgage. However, any money you borrow will likely be at a much higher interest rate, so this option is not going to help your overall financial position.
Facing foreclosure is never easy, but hopefully the above advice will help!