Help For Foreclosure In Salt Lake City – 3 Ways To Avoid Going Into Foreclosure

Help For Foreclosure In Salt Lake City – 3 Ways To Avoid Going Into Foreclosure

Rusty chain and a padlock close up a door in the shadows

There aren’t many things scarier to a family than facing a foreclosure. You are homeowners and you love being in your home. Unfortunately, circumstances may have led to an imminent foreclosure.

When local UT families are confronted with foreclosure, it can be one of the most stressful times of their lives. Even worse, the foreclosure proceedings often drag on for months or years, causing the pain and stress to continue for too long.

Thankfully, there are options you can utilize here in UT — there may be different options you weren’t aware of. Different strategies are available to help for foreclosure in Salt Lake City; they are legal strategies to avoid foreclosure that you can put in motion in order to help resolve the foreclosure and get back to living your life.

In this article, we’ll discuss 3 strategies you can use to avoid going into foreclosure (other ways exist as well). The purpose of using these methods is to avoid foreclosure in a legal and ethical way, limit the pain and hassle you have to deal with, and reduce the long-term financial burden you have to carry. Each of these strategies won’t always work in every situation but odds are that at least one method will work for your circumstances.

Option #1: Work out a deal with your lender

This first method is referred to as a “foreclosure workout”. In this scenario, you and your lender will sit down together and discuss your inability to pay your current mortgage payments, but that you wish to find a way to keep paying so that you can stay in your house.

As opposed to what many think, lenders would rather avoid foreclosure! They prefer to have happy homeowners who can make their payments, so the lenders will typically try and work out a deal that makes sense for both parties. This may involve a reprieve on your payments, temporarily, or it could involve a strategy that lets you catch up on your outstanding payments by spreading them out and making them easier to pay off. It could also involve taking the outstanding amounts you owe and restructuring them.

Option #2. Bankruptcy

The idea of filing for bankruptcy might seem to be an extreme choice, but it’s a foreclosure avoidance tool that is available to you. By filing for bankruptcy, you’re letting all creditors know that you can no longer meet your debt obligations. Upon filing for bankruptcy, the foreclosure process will be stopped because all of your creditors must cease their collections activities.

To file for bankruptcy, you need to be prepared for the consequences of that action: you may be forced to sell off some assets to cover what you owe your creditors. That, and, a bankruptcy will be on your credit history for years, which can hinder your ability to get things like a car loan… or even a job! Therefore, bankruptcy shouldn’t be the first choice you consider.

Option #3. Short sale help for foreclosures in Salt Lake City

The third option available is the short sale — this is what it’s called when you sell your house and apply those funds to the amount you owe on your mortgage. Short sales are a great option for those facing a foreclosure since it’s fast, proactive, and highly effective.

  • This option is fast — in many cases, your home can be sold in just one week! This is also due to the process being local: You can receive help with a Salt Lake City foreclosure since firms like Property Seller Solutions provide help to folks using the short sale method.
  • This option is also proactive, meaning you are taking control of the situation (which is a big stress relief since a large amount of the foreclosure stress is due to the situation being totally out of your control).
  • It’s highly effective since short sales have the ability to totally wipe clean (or almost wipe clean) what you owe on your mortgage. If there is an amount left over that the sale of your property doesn’t cover, you will still be responsible for it (but, sometimes a deal can be reached with your lender).

Choosing to use the short sale method will still result in you having to give up your home, but it has a huge benefit: The effect it will have on your credit is much less harmful compared to a foreclosure or bankruptcy, so a short sale is a smarter long-term option for many.

If you’d really love to sell your house to get out from under a foreclosure in UT…

Call us today at (801) 876-1036 or click here to fill out our simple form and we’d be happy to make you a fair all-cash offer on your house.

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