5 Ways to Avoid Foreclosure in Orlando

In Orlando FL, the foreclosure process begins when you start missing payments on your house. Your lender is likely to send you notices to inform you of your missing payments and start adding late fees if you’re not careful. 

Unfortunately, if you’re not able to make these payments, your lender will begin moving you to the pre-foreclosure phase, lasting 120 days. A foreclosure lawsuit cannot be filed until you’ve missed your mortgage payments for at least 120 days, so this is a great time to consult a foreclosure attorney regarding your options. 

We’re not foreclosure attorneys, but we have a great deal of experience in the area, so if you’re worried about a possible foreclosure, let us ease your worries with these 5 ways to avoid foreclosure.

  1. List With A Real Estate Agent

If you’re trying to stop foreclosure, you can go through the process of listing your property with a real estate agent. The intention here is to use the money to pay off your lender before they serve you with foreclosure papers.

While it can be an easier process (as the real estate agent will find the buyers for you), it can also take a lot longer and possibly cost more in the long run. However, if your home is in relatively good condition and you’re early on in the foreclosure timeline, this may be a good option for you. 

  1. Short Sale

This option is useful for those who owe more on their mortgage than the house in Orlando is worth. A short sale is a process of selling your house for less than what you owe on your mortgage payments, and then coming to an agreement with your lender to accept that amount as the payoff for your mortgage. 

To help you out, you’ll need an experienced attorney to assist you as well as a real estate agent who’s gone through short sales before. These may take a long while to complete, and some can involve a lot of paperwork so you should be prepared if you want to go down this route.

  1. Selling Subject-To The Loan

If you’re finding it difficult to deal with your mortgage payments and need assistance before the foreclosure papers come in, you can always consider a subject-to loan, also called assumption. This is where a qualified buyer can purchase your home and assume your mortgage

They will make payments on your behalf, allowing you to increase your credit score. Buyers such as these use this method in order to assist those with low equity and put some money back into your pocket.

  1. File For Bankruptcy

It’s not something anyone wants to consider, but many people have been filing for bankruptcy in Orlando to avoid foreclosure. This can sometimes stop the foreclosure permanently, but in most cases, this can only delay the foreclosure. 

Bankruptcy can be a complicated process so you’ll likely need an experienced bankruptcy attorney to assist you through the process. It’s certainly not the easiest solution to avoid foreclosure, and it can stay on your credit report for up to 10 years, making it extremely difficult to get loans or rent a house.

  1. Selling Directly To Cash Buyers

If your home isn’t in the perfect state to list with a real estate agent and you need a closing date in mind, you can opt to go directly to a cash buyer in Orlando like us, The Local House Buyers. You can send us a message for a quick and easy estimate with no hassle, and we don’t mind if your house is a bit of a fixer-upper.

There’s guaranteed closing with our offers so you won’t have the stress of worrying whether the sale will fall through and leave you with foreclosure. If you need to sell your home before the foreclosure papers come through, sell with us!

Conclusion

Foreclosure can be scary, but there are a number of options available to you should you ever find yourself in that situation. At best, if your house is in great shape, you can always list it with a real estate agent. At worst, you can file for bankruptcy, though you can avoid this by selling with a cash buyer much like ourselves. Contact us if you need more info!

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