Escaping the Foreclosure Spiral

By: Shane Barker

Apart from divorce settlements that ended up in a huge spat between you and your spouse that the neighborhood witnessed, there could probably be nothing more embarrassing than being evicted from your own home. What not many people are aware of is that this embarrassing and frightful situation can become a near possibility especially with life changing events in one's life such as the loss of a job, divorce settlements, and bereavement. These unforeseen circumstances could inevitably affect your mortgage payments which could lead to the foreclosure spiral. When you are deeply immersed in the foreclosure spiral, the possibility of eviction becomes very very real.
The foreclosure spiral
Most lenders have mortgage loan time frames. From the day the mortgage payments are due, you still get to have 16 days until you are reminded of your delinquency. Afterwards, expect your lender to be in frequent contact with you for delayed payment. Also, an extra fee for late payment is appended to your balance. After the 30th day mark and you still have not been able to pay your monthlies or any balance due, a foreclosure demand or breach letter will be sent. You will be given more or less 30 days to still pay your debt. Afterwards, a foreclosure case is filed unto the local court and legal proceedings will determine the consequence of the foreclosure.
How to deal with the foreclosure spiral
The best way to deal with the foreclosure spiral is to prioritize your debt and pay back as soon as possible.

However, when this becomes impossible, the only other option is to avoid or stop it. In avoiding foreclosures, make sure to contact your lender right away. After all, unless you're a scammer, your lender will provide any foreclosure assistance whenever appropriate. What you need to do is to disclose any information or reason/s why you were not able to meet the deadline. From hereon, the lender will provide foreclosure solutions which you may opt for. One way is to modify your mortgage status. However, if you are deeply entrenched in the foreclosure spiral, more often than not, the lender might just cut its losses rather than lose more in tax payments. Either that or they may recommend a mortgage short sale.
When mortgage payments become impossible for the borrower or when any mortgage status modifications become useless or have already been exhausted, a mortgage short sale can be arranged. You may be wondering what a short sale is. Lenders will sometimes allow this as a sort of last option for both sides to cut back on losses. During a so-called redemption period, the lender allows the borrower to either buy back the property or sell the property for a price that is less than the loan amount, within a limited period. The latter is involved with short sale foreclosures or real estate short sale. The period may last for a month or extend to 90 days. The short sale process is quite simple in essence but is often harder to execute. The borrower simply needs to find a buyer who is willing to buy in such a short span of time.
This is where Cashout Options comes in. CashOut Options is a company that is very experienced and is known to be good at stopping foreclosures. They are a company that buys almost any kind of property whether it be two-storey houses, apartments, bungalows, in whatever state of condition and in any location within the country. They have provided many people with foreclosure help by mediating in these sorts of instances. Because they immediately buy your property directly from you, they could help in mortgage short sales in order for you to get out of the foreclosure spiral and from being evicted from your own home. What is more is that, depending on the circumstance and agreement/s that may transpire between you and the company, they could answer for the remaining balance of your loan. Thus, when keeping ownership of your home does not become an issue, you not only escape the legalities and embarrassing consequences of a foreclosure but also maintain your credit as a borrower and possibly keep your home as tenants.

Foreclosures
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