Foreclosure is something many of us don’t even think about when we purchase a new property, but it is a reality for many people. It doesn’t madder the reason you are going threw it, it is just hard. Today we are going to look at the foreclosures effects in Columbia Heights, Minnesota and what local house sellers need to know before or during the whole process. First we will look at the effects and the ways of easing them.
Foreclosure Effects in Columbia Heights Minnesota to Sellers
- Eviction from your home—going threw the eviction you are going to turn the home back over to the lender or bank and loose any and all equity that you may have established while owning it.
- There can be much stress and uncertainty not knowing when the process will be completed and knowing exactly when you will have to be out of the home permanently.
- Damage to your credit—Foreclosure effects sellers ability to new a new loan, employment at times and lasts for years.
- May owe money even after foreclosure sale to lenders or lien holders.
- Lose any relocation assistance or leasing opportunities that may be available with other options
- Forfeit ability to get a Fannie Mae mortgage to purchase another home for at least 7 years (Fannie Mae guidelines)
Will The Effects in Columbia Heights Foreclosure Action Wipe Out All of Your Debt?
Foreclosure actions wipe out some of the property owner’s debt, like the original mortgage (taken out at the time of purchase), Home equity Loans (HELOCs), and second mortgages. However, property owners are still obligated to pay HELOCs and second mortgages off in full if they are not paid out of the foreclosure proceeds.
In Columbia Heights where there has been a significant drop in real estate prices back in 2008 and now with people getting 101% loan to value loans , some properties will be sold for less than the balance owed on the original loan. If there is no insurance protecting the mortgage holder (e.g., private mortgage insurance, or PMI) for the difference between what is owed on the property and what it sold for, a court could enter a deficiency judgment against the property owner. Deficiency judgments obligate the property owner to repay the difference and give mortgage holders the right to collect the remainder of the debt owed from any other assets the property owner may have.
How You Can Ease The Effects Of Foreclosure In Columbia Heights
For the well being of you and your family, you need to mitigate the effects of foreclosure as best as you can. The process can be frustrating and time consuming, but there are people who can help you navigate your different options in the process.
- Call your bank and work with them: Most banks are very willing and ready to work with you if you contact them early in the process… if you can show that with their help you can get back on track and continue to make payments on the loan you owe them. Or, if you just want out of the house but you owe more on the house than it’s worth… see if the bank has any programs to lower the mortgage burden so you can get out from underneath it without it going through an expensive foreclosure. Some banks allow their clients to do a short sale, when you market the home at a discounted price lower then the amount that you owe the lender and you get the lender to agree to the lower price. Then you are able to sell the home traditionally threw a realtor vs going threw the forecloser. This will not effect your credit but most likely you will be issued a 1099 and will be taxed just like income for the amount difference between the sale price and what was owed. Most banks will not want to do this.
- Talk with a local real estate expert, like Minnesota Cash Home Buyers: We know the local Columbia Heights real estate market well and are very experienced in the foreclosure process here in MN. We have helped many good people threw this ugly time in their lives with expert advice and solutions. We can talk threw all Foreclosure effects in Columbia Heights Minnesota – What you as a seller need to know. Give us a call at (612) 444-5088 and we can guide you toward the resources that can possibly help you.
- Sell your house: If you’d rather find a way to sell your house and avoid the foreclosure all together, great! We buy local Columbia Heights houses for cash… and would love to look at your situation and make you a fair all-cash offer on your house. Just call us at (612) 444-5088 or shoot us your details through this website.
- We get clients every year that tell us: sell my house fast in Columbia Heights MN to avoid the effects of foreclosure on them and their families.
With the above knowledge on foreclosure effects in Columbia Heights – what sellers need to know, you can guard yourself by calling Minnesota Cash Home Buyers at (612) 444-5088 and we shall assist you in the shortest time possible to sell your house. However, to fast track the process, kindly fill out our website contact form to give us more information about you. We’d love to connect with you and help you find the best solution!