For homeowners who want to stop foreclosure in Minneapolis St Paul, if they don’t get after it right away, the future can look pretty grim. In our latest post, we offer 6 ways homeowners can stop foreclosure of their homes in the Minneapolis St Paul area.
Has it become difficult to pay your mortgage each month? Maybe you are going through some hard times like losing your job. Unemployment in Minnesota is rising at an alarming rate. You were put into the hospital with the coronavirus or loved one has a significant illness, and medical bills are piling up. Are you feeling the pain of it all, with no end in sight? At some point, when you have missed some mortgage payments to your lender and bank sends you letters stating foreclosure is coming your way, and they want to take you home, you need to find a way out of being behind in your mortgage payments. Keep reading to learn more about what you can do and how Minnesota Cash Home Buyers can help you stop the foreclosure of your house in Minneapolis St Paul.
To stop foreclosure of your house in Minneapolis St Paul, a direct and fast sale is often the best way to go. Minnesota Cash Home Buyers is a professional home buyer in Minneapolis St Paul that will help you sell your house fast. This will stop the banks from hounding you with phone calls, emails, threatening letters, and avoiding the destruction of your credit. It may be a set back in your desire for homeownership, but you will still have your credit and should walk away with some dollars in your pocket. Not all homebuyers are the same – Minnesota Cash Home Buyers is a local company and are dedicated to helping homeowners in stressful situations, providing reasonable solutions that make sense for all parties involved. Be aware of national companies called ibuyer that sound good over the phone or emails, but there is something about sitting across the table looking eye to eye with someone as you develop trust in them being able to do what they say they can do. There are many advantages to selling you home to a local buyer vs online buyer. While you may not receive the retail price like selling through an agent, you will be able to sell in just a few days, saving thousands of dollars on commissions, needed home repairs, and months of holding costs while trying to sell it. Giving up your home can feel awkward, but it is better to sell by choice than to have the bank come in and forcefully take over the property.
We got a phone call from a man who needed to sell his house in Roseville fast. He borrowed money against the home to put in his failing business. Once the company was gone and he could not make the payments anymore, the local Minneapolis St Paul bank foreclosed on him. He tried to get a traditional loan that didn’t work. He called up business friends and asked for a loan even looked for a hard money lender, but no one would help him. So, the house was worth $350,000, and he had an outstanding $113,000 loan; he was being foreclosed on for no payment and was at the end of his redemption period. Now he is calling us. Usually, this is a good thing, and we can help. The problem was he waiting too long. It was 2:30 pm last Friday, and his redemption period was up at 5 pm that day. We felt terrible for him, his back was against the wall, and he would lose his $350,000 house at 5 pm because he could not pay his $113,000 loan off. We are good, but not that good. We could not pull the title work, look at all the other liens that may be against the property, talk to the bank, get the contract done and pay the bank off all in 2 1/2 hours. It was some of the worst news I could have ever given someone says, ” we can not get that done in that amount of time.” He was silent on the other line of the phone. If we had 3 days and everything went Ok or better, we could have done it. Bummer!
For some homeowners, borrowing money from a family member can be a quick solution to stop the bank. However, this isn’t a longterm solution to your financial struggles, and not everyone has that kind of money lying around. If the mortgage you have now has become difficult to pay, it will likely be challenging to pay going forward as well. Getting into a pattern of continuously borrowing money will only get you into more debt, but this time it will be with multiple creditors. Borrowing money from loved ones can also strain your relationships with the people that you care about, making your difficult situation feel that much worse.
If you could try to borrow from you IRA or 401K, you will need to pay those back while you will be paying your regular mortgage payment. The struggle will just keep getting worst.
Ask For Foregivence
When you are struggling to make your mortgage payments, you can reach out to your lender and explain the situation. In some cases, most likely, the smaller credit unions or individual banks of Minneapolis St Paul will step in and help. If you can agree, you will defer a payment or work out a payment plan to make up what you owe. That said, you will still have to find a way to pay your debts. Deferring the problem will only push things back, it won’t magically catch you up or erase the debt you are in. Asking for forgiveness is a one-time event that helps you deal with an unexpected situation… not something to bail you out long term. Loan forgiveness is also known as loan forbearance and is used after an illness, a loss, or anther one-off circumstance. Depending on what brought you to this situation, you might have a may to slow it down some with forgiveness.
Refinance you Minneapolis St Paul property
Refinancing your property can help you to achieve a lower monthly payment, but there is a cost. This all depends on what you are refinancing from and to what. Interests rate are at an all-time low, and refinancing is making sense to many homeowners. If you choose to refinance with a hard money loan, your interest rates can be through the roof. Most hard money lenders charge a 1 or 2 percentage point charge upfront and interest rates at least 8% with most at 10 or 12%. A $250,000 loan can easily be charged a fee of $5000 upfront and payments that are higher than you are doing now. While this may help you to save your house from the bank, it will ultimately cost you more money in the long run. With that in mind, you may lose your Minneapolis St Paul house anyway. You can also work with your current lender to refinance your existing loan. However, you need to prove that something is changing and that you will not have trouble with your payments going forward.
Rent The Property To Someone Else
If you aren’t able to pay the mortgage yourself, maybe someone else can help make the payments. Of course, This means that you will need to quickly find somewhere else to live at a price you can more easily afford. Or you may live in the house with this new tenant. You’ll first need to find a high-quality tenant who you can count on to pay the rent each month. If your situation allows, you could also rent out a bedroom in your home for some extra cash while you continue to live in the home. Just make sure boundaries are set on both sides so that everyone is comfortable with the living arrangements. If you trust the wrong people and they move in, you can default on your mortgage anyway, ending up with the same result of losing your Minneapolis St Paul house to foreclosure.
Nobody is thrilled about having to declare bankruptcy, but it may be the answer you have been waiting for to fight off foreclosure. Declaring Minnesota bankruptcy will restructure your debt and create a payment plan to get you back on your feet. While this won’t look good when applying for loans in the future, it can be a way for you to keep your current home, stopping the banks in their tracks. Always hire a good bankruptcy lawyer who understands Minnesota real estate law and can advise you on what you should be doing.
At Minnesota Cash Home Buyers, we want to help you stop the foreclosure of your Minneapolis St Paul property. Our team can help you review your options and make you a no-obligation offer to sell quickly. Don’t be like the guy who waited too long to call us. Let our team help you promptly and efficiently handle any difficult property or situation you are dealing with.