People spend years to get the house of their dreams, and then they spend many more years creating lasting memories with family and loved ones in that house. It’s these memories and attachments that make the house a home.
Often, however, the dream home will not come free of debts and substantial mortgage payments, and sometimes a financial crisis that can send that dream home into foreclosure. If you find yourself at this point, a single wrong move can throw you and your family out of your dream home in no time. But if you do things right, your house may be saved. A great place to start if you live in the area is to consult a real estate attorney from our Burlington, Iowa law firm.
But first, if your house is simply at risk of foreclosure, there are measures you could take to prevent it from foreclosure altogether. It is best to avoid the foreclosure process from occurring than to try and salvage it after it happens. However, if your house is already in foreclosure, all hope may not be lost, and there are still ways to soften the blow.
When your finances are clearly on a downward spiral, your best option may be to sell your house for less than what’s left on your mortgage loan payment. If you have defaulted on payments, check with the lender. The lender may also be able to provide a suggested timeframe for the sale of the house.
While this option may seem gloomy since you aim to save your house, but a way out is to sell to a friend or an investor who will lease the home back to you. This way, you can sign a lease contract that allows a clause for an “option to purchase.” When your financial situation improves, you can buy back your home, and you will never have moved out in the first place.
But there are risks, and you’ll have to ensure an airtight agreement as the investor involved may use your house as collateral or even sell it off without your permission. As always, the best way to ensure your protection is to discuss your situation with a real estate lawyer.
DEED IN LIEU OF FORECLOSURE
Voluntarily giving your property to your lender is another way to go. You’re eligible for a deed in place of foreclosure if you fail to sell your home before the set time. This option saves you both the foreclosure process and help mitigate the negative impact on your credit score.
Make no mistake, filing for bankruptcy is no complete way out of foreclosure. It is merely a way to delay the process long enough to buy you time to get back on track with your mortgage payments. At the end of the bankruptcy-induced suspension, your lender may even demand full amount, which could mean you must apply for a refinancing loan.
Before going into any real estate investment in the area, it’s best to have the backing of a real estate attorney. Professional legal insight can save you a lot of trouble in the long run. That said, if your financial situation does not afford you the possibility of avoiding foreclosure on your home, it’s not too late to get a real estate lawyer in Burlington, Iowa, to ensure the best outcome if you are in the middle of a foreclosure.