One of the more unfortunate side effects of the economic downturn is foreclosures occurring at record rates. It’s a hard pill for the average person to swallow. Through no fault of his own, he suddenly finds himself out of a job, behind on his bills, and the bank comes looking to repossess his house due to non-payment.
What are your options if this happens to you?
For starters, you can try many different consolidation methods, look for loans other than home loans, and other means of financial relief that will inevitably set you back in the long run. Yes; it’s a lose-lose situation once it gets too deep, but people try their best to keep their homes.
One method of getting out of debt and avoiding repossession is to sell your home before the lender can take it away.
What are the benefits here?
Well, you’re seeing a lot of positives in comparison. If the bank reclaims your house, you will be left homeless with nothing to show for it. You will be thrown out onto the streets, perhaps even forcibly, and you will be left alone to make spontaneous decisions about where you will lay your head.
However, by selling your home, you can pay off your debt in full, or at least enough to get creditors off your back, and use the remaining money to start over in a new home or apartment of your choice.
Certainly not ideal. Nobody wants to be in this kind of situation. However, once the bank is ready to repossess, you only have two options: sell your house to get out of the situation or allow it to be repossessed and walk away with absolutely nothing.
There are two ways to sell your home when repossession calls. Whichever way you choose, you should find a buyer very quickly. You cannot afford to wait for the market to recover or for the absolute best offer to come along.
The first: you can find someone on the open market to buy your property from you. This will give you the best option financially, as you can get a great return on your dollar and still have a significant amount of money left over.
The second: you can get in touch with companies specializing in the purchase of homes about to be repossessed. Of course, these companies are there to make a profit, so you won’t receive as much money. However, they will buy the house quickly and let you handle whatever you need to handle.
This is going to be a difficult decision for anyone, but it must be made quickly. It’s always better to kiss the deal instead of the lender. The rest can be dealt with at a later date.
