Receiving a notice of default can be a scary moment. This typically means you are 30 to 45 days past due on your mortgage payment, and that you may be on the route to foreclosure. It may feel like you have no options or anywhere to turn, but this is simply not true.
There are several things you can do after receiving a notice of default. Here are a couple of options to explore if you find yourself in this situation.
Do Nothing…And Go Into Foreclosure
Of course the most obvious choice is to simply do nothing and let your house go into foreclosure. Foreclosure is a lengthy process that typically takes around 160 days to be finalized. The lender will take possession of the home and then sell it in an attempt to get their money back. Foreclosure negatively impacts your credit and will ultimately leave you without your home. It is best to try to avoid this option if possible.
Deed in Lieu of Foreclosure
An alternative to foreclosure is a deed in lieu of foreclosure. This option means that you, the homeowner, voluntarily give up your ownership of the home to the mortgage owner. In return, you are released from the loan and payments. This choice is attractive because it can help you manage your debt and might be less damaging to your credit score than a foreclosure would be.
Another alternative is a short sale. This allows you to stop a foreclosure, and instead sell your home for less than the remaining mortgage balance with the approval of your lender. These types of sales take a great deal of time and can be very complicated, but they are definitely a far better option than a foreclosure. Short sales are also appealing because they allow you to stay in your home until the sale is complete, and they are less damaging to your credit score. These benefits allow you a little bit of time to get back on your feet.
Sell Your House Fast For Cash
The final option to explore is selling your house for cash. With this particular option, Local Cash Buyers will take over your mortgage payments and pay your mortgage up to date. This allows you to avoid foreclosure altogether and begin rebuilding your credit. The sales process usually takes around 7 to 10 days, so it is by far the quickest way to avoid the damage a foreclosure can cause.
Receiving a notice of default is not the end of the world. In fact, there are many ways to handle the news. Just remember that acting fast is imperative to avoiding a foreclosure and starting over.
Ready to sell your house fast for cash? Give us a call at 469-701-1666 or fill out our online form to get started!