Need help for foreclosure in Minneapolis St Paul? Few things are more devastating to families than the prospect of foreclosure. You own your home and you love it — it serves you well. Yet, due to unfortunate circumstances, foreclosure may seem imminent. If you need help for foreclosure in Minneapolis St Paul keep reading.
Here in MN families facing foreclosure can be a challenging time , the stress can be almost unbearable, and many going threw it do not know what they should be doing. The whole foreclosure process can take months or even years, stretching out the pain for longer than anyone wants.
Fortunately, you have options available to you here in MN — perhaps more options than you realize. There are many strategies that help for foreclosure in Minneapolis St Paul; these are legal foreclosure avoidance strategies you can implement to help you resolve your foreclosure issue so you can get on with your life.
In this expert real estate blog post, you’ll read about 3 ways that you can avoid foreclosure (there are other ways to avoid foreclosure as well). The goal of these strategies is to help you legally and ethically avoid foreclosure and reducing the pain and frustration that you’re facing, while minimizing any long-term financial commitment or burden to you. Not all of these strategies will apply in every situation but you’ll probably be able to find at least one of the three ways that will work for you. So lets get started.
Strategy #1: Work out a deal with your lender
The first strategy is called a “foreclosure workout”. In a foreclosure workout, you set up a conversation with your lender and talk about what you think you could payment in a monthly payment towards your mortgage. The lender along with you would like to figure something out so you can stay in your house and continue to pay your mortgage. It truly becomes a win win situation.
Contrary to popular belief, lenders don’t want to foreclose! They want happy customers who pay their mortgages because that is what they are in business todo, so lenders are often willing to work with homeowners to figure out a deal. This might include a temporary reprieve on your mortgage payments, or it might include a catch-up strategy where your outstanding mortgage payments are spread out so you can catch-up and pay them off, or it might include a restructuring of the outstanding amounts that you owe.
Strategy #2. Bankruptcy
Filing for bankruptcy may seem like an extreme measure but it is one of the “tools” in your foreclosure avoidance toolbelt. When you file for bankruptcy, you indicate to all of your creditors that you are no longer able to pay your bills. Filing for bankruptcy will put a stop to the foreclosure process because all creditors must stop the collection process.
What happens to a mortgages in bankruptcy?
A: It depends on which type of bankruptcy you file.
In Chapter 7 bankruptcy, most of your assets are sold and the money given to creditors, and then your remaining debts are done away with. This essentially means the creditor cannot pursue you for payment. If your home is included in the Ch. 7, delinquent amounts on the mortgages will still be owed to creditors. Furthermore, the lien (which gives the lender the right to take your property through foreclosure) still exists, so the lender may still take your home with foreclosure.
Under Chapter 13 bankruptcy, your debt is reorganized into a repayment plan, which allows you to repay your debts in full. Repayment plans typically last 3 to 5 years. Ch. 13 bankruptcy allows you to keep assets such as your home.
In a Ch. 13 bankruptcy, only the delinquent mortgage debt is included in the repayment plan. Therefore, you will need to make your regular monthly payment on all mortgages AND a monthly payment to the bankruptcy trustee under the repayment plan. The bankruptcy does not affect the mortgage lien, so lenders retain their right to foreclose if you fail to make timely payments. This can help for foreclosure in Minneapolis St Paul.
Filing for bankruptcy, though, is a little extreme: it may require you to sell off some of your assets in order to pay off your creditors first. And, a bankruptcy will remain on your credit score for many years, which could impact everything from getting a loan to getting a car… even getting a job. So this shouldn’t be your first line of defense!
Strategy #3. Short sale help for a foreclosure in Minneapolis St Paul
A short sale is the third strategy — this is where you are either in forecloser or in preforeclosure and you market to sell your home and put the proceeds of the sale toward the amount owing on your mortgage loan. In a short sale you find a buyer who has an offer on your home, you take that offer to the lender and say you have a solid offer on your home to sell it at a reduced price compared to what is owed on your home. the lender decides if it is worth to take the offer at a less amount than what is owed to to be done with the mortgage note. A short sale is a preferred method for people facing foreclosure because it is proactive, fast, and very effective.
Think about it, how a short sale can help for foreclosure in Minneapolis St Paul.
- It’s proactive, which means that you take matters into your own hands (that’s a major stress eliminator because so much of the stress of foreclosure comes from the process being completely out of your control). The lender likes it because instead on you just hiding your head in the sand hoping the foreclosure goes away you are doing something about it.
- It’s fast — in some cases, you can sell your home in as little as a week! That’s also because it’s local: You can get help for foreclosure in Minneapolis St Paul since organizations like Minnesota Cash Home Buyers help people going through short sales.
- It’s very effective because a short sale can completely wipe out (or almost wipe out) the amount owing on your mortgage. If there is any amount left over that is not covered by the sale of the property, you’ll be responsible for it (although you can sometimes work out a deal with your lender). that working out is done when you bring the offer to the bank asking for them to accept the offer.
With a short sale, you will have to leave your house, but it is under your control of how it goes, unlike a foreclosure in Minneapolis St Paul metro area you walk away with nothing, Yet, there is a bright side: The impact to your credit is much less (compared to a bankruptcy or a foreclosure) so this is a smart long-term play to give yourself some options.