Avoiding foreclosure is crucial if you run into financial difficulties. Many Kenosha-Racine residents want to avoid lenders foreclosing on their homes. After all, a home is more than just bricks and mortar. A home is a secure place for the family to be together, no matter what problems they face.
Unfortunately, unforeseen circumstances happen whereby foreclosure seems imminent. You may have lost your job, had enormous medical bills to pay, or face other life-changing events. Fortunately, you have options available to you here in Wisconsin—perhaps more than you realize.
Of course, for local Wisconsin families facing foreclosure, the stress can be horrendous. To make matters worse, foreclosure can drag on for months, and even years. The result is a lot of uncertainty.
Thankfully, many folks in Kenosha-Racing have avoided foreclosure successfully. We want to share with you three ways that you can avoid foreclosure. Of course, there are other ways to prevent the bank from repossessing your home. But these three foreclosure prevention tips can reduce the pain and frustration that you’re going through. You will also minimize any long-term financial commitment or burden.
Three Strategies to Avoid Foreclosure in Kenosha-Racine
What can you do if you have letters threatening foreclosure on your Kenosha-Racine home? Read on to find out.
Maybe not all these strategies will apply your situation. However, at least one will probably be able to help you avoid the trauma of foreclosure.
Strategy #1 — Work out a deal with your lender
Lenders want to avoid foreclosure, and they are usually willing to help you work out a deal. You need to sit down with your lender and crunch the numbers. Find out what you can and can’t pay in your current mortgage obligation. Let them know that you want to continue paying the mortgage to stay in your house.
What can lenders offer to help you avoid foreclosure in Kenosha-Racine? The three most popular options are:
- A temporary reprieve on your mortgage payments
- A new payment schedule to help you through a rough patch
- Restructure the loan to pay the outstanding amounts that you owe
Strategy #2 — File for bankruptcy
Although this is an extreme measure, it’s one way to avoid foreclosure in Wisconsin. Filing for bankruptcy means that your creditors can no longer come after you for debts. It will also halt the foreclosure process because your creditors—your mortgage lender—must stop the collection process.
It’s crucial to remember that bankruptcy should only be a last resort. When you file for bankruptcy, you’ll have to sell off some of your assets to pay as much of your debt as possible.
Bankruptcy will also impact your finances for years to come. The record of bankruptcy stays on your credit report for seven years. You’ll also suffer from a low credit score for many years, impacting your chance of getting a loan, renting a house, and getting a job.
Strategy #3 — Short sale help for a foreclosure in Kenosha-Racine
Another way to avoid foreclosure in Kenosha-Racine is a short sale. This is where you sell your home and put the proceeds of the sale toward paying off the mortgage. For most Wisconsin residents, a short sale is a preferred method for anyone facing foreclosure.
Here are the three advantages of a short sale to avoid foreclosure:
- Short sales are proactive—You take matters into your own hands and put yourself in control.
- Short sales are fast—You can usually sell your home in less than a week. You can get help for foreclosure in Kenosha-Racine because organizations like At Home Buyers assist homeowners with short sales.
- Short sales are effective—You can usually wipe out most or all the amount owing on your mortgage. If you still owe money on your mortgage, you will need to come to an agreement with your lender.
Of course, with a short sale, you still have to leave your home. However, it’s not all doom and gloom. There is less impact on your credit score with a short sale. This means that you can get back on your feet faster and have more options going forward.