Regardless of how good or bad the economy is, sometimes unforeseeable financial hardships arise. Is selling your house really the best solution for preventing foreclosure in Detroit? The answer depends on a few different things. In this post we will take a look at some common situations and after reading you can decide if selling or another alternative is best for you. In reality there is no cut and dry answer but this information should be helpful in the event you are searching for a way for preventing foreclosure.
Identify The Type Of Foreclosure
Are you behind on payments to your lender or are you behind on paying your property taxes? If you are behind on your monthly mortgage payments how long will it take to catch up and can you afford it?
Options For Preventing A Bank Foreclosure
One option for avoiding a bank foreclosure is to contact your lender and ask if you can apply for a loan modification. In some cases this might be a good way for stopping foreclosure. If you owe more than the house is worth or don’t have much equity then a short sale could be a solution. A short sale would need to be approved by the lender but it could be worth looking into. The downside to a short sale is that they can take a long time to execute. On the other hand, if you do have a decent amount of equity but don’t want to deal with catching up, selling your house quickly might be the very best option.
Options For Preventing Tax Foreclosure
If you are searching for a way to prevent property tax foreclosure you’re not alone. Property tax foreclosure has become a normality in Detroit. You could contact the Wayne County Treasurer to find out if you qualify to get on a payment plan until you get caught up with paying your balance. The downside to being on a payment plan is the interest fees, which can really add up in the long term. In most cases if you are 2 or more years behind on payments then selling your house fast is usually the best available option.