Foreclosures are an unavoidable aspect of the home-buying system. When a home buyer fills out their loan paperwork, they may be well-qualified and well-equipped to buy a home, but life can hurl many unexpected twists and turns.
Life circumstances are most likely the primary factor of foreclosure, with the following being among the most frequent reasons:
Loss of Job
In the context of a foreclosure, loss of employment speaks for itself. Since the late 2000s, job growth has been difficult for particular industries. While some people can find work quickly after losing theirs, others are out of work for months, particularly in businesses where demand has decreased due to technological advancements or changing customer preferences.
These people may find themselves required to take a lower-paying job just to keep their money rolling in, which may jeopardize their capacity to afford a house.
Divorce is another life event that can be financially damaging in several ways. When a couple applies for a divorce, their finances are usually divided, which can leave one party unable to cover the mortgage even if the courts have awarded it to them. Furthermore, divorce expenses are very high, so if you are going through a divorce, you may find yourself unable to make your mortgage payments due to the legal costs.
Medical problems can be financially costly because they can affect you in two ways. If you or a loved one is suffering from a chronic health problem, you may have to take time off from work or stop working entirely. Furthermore, even if you have insurance, the cost of treatment can be outrageously high.
Medical issues do not only prevent you from earning the income you expect, but they can deplete your existing financial reserves as well. This makes paying your monthly mortgage payments increasingly hard.
Death in your family may show some of the same difficulties as medical issues, such as time off work, lost earnings, and the inclusion of unexpected bills.
The good news is that foreclosures decreased in 2016 compared to previous years. According to ATTOM Data Solutions, there have been over 933,000 foreclosures in 2016. While that is a substantial number, it embodies a 14 percent decrease from the previous year and the fewest since 2006. That is an optimistic statistic, and it represents, in part, the implementation of more stringent criteria for applying to buy a home in recent years.
However, because foreclosure rates are still prevalent, you must understand that there are alternative solutions. An as-is sale is one such option. You can sell your home for cash with an as-is sale. You can do it without adding back assets to the property, such as spending for repairs, staging supplies, or expensive realtor fees.
Sell Your Home Fast Through As-Is Sale Option
A significant advantage of an as-is sale is its speed compared to a foreclosure. Instead of waiting weeks or even months for the creditor to complete the foreclosure action, you can sell your property as-is to a cash home buyer in a relatively short time. A cash buyer will make offers within a few days of visiting the property, saving you valuable time. Foreclosures, on the other hand, typically take 12-14 months – on the short end of the timeline. In the long term, you may be looking at three years.
That’s a long while to go through the same process, and you’ll undoubtedly experience some stress along the way. It would undeniably be beneficial to reduce that timeline and anxiety.
If you are behind on your mortgage payments, do not assume that foreclosure is your only choice. To recapture your losses and avoid the long and complex timeline of a foreclosure, you may be ready to sell to a cash buyer on an as-is basis. Contact us today at (316) 285-9067 to learn more.