Your credit score plays an important role in your life, so it’s important to take care of it. Unfortunately, bad things can happen to good people and your credit score can take a hit.
If you’re facing foreclosure penalties, you might not be able to pay your mortgage off in time and you might even lose your house if the lender decides to repossess it.
To save your credit score from foreclosure penalties, you can sell your house with cash quickly, keeping both of those penalties at bay while earning money toward the next step in your life.
Selling Your Home is Better Than Waiting
The majority of people facing foreclosure opt to wait and hope for a recovery in housing values, thinking they’ll get more for their home if they wait.
The problem is that while houses take forever to sell in a tough market, delinquent mortgages don’t get any more affordable over time – they just cause more headaches.
If you’re one of these homeowners who has been waiting, you should know it may be time to cut your losses and sell now.
You may not realize it but when you fall behind on payments or otherwise default on a mortgage, it goes on your credit report as such. Many lenders will then factor that into whether or not they decide to lend you money in the future.
Why Wait?
If you’re facing foreclosure, it’s a good idea to start preparing for the sale of your home. Why? Because time matters.
If you give foreclosing banks too much time, they could file a motion to begin foreclosure proceedings, which would add significantly to your legal expenses and wipe out whatever equity you have in your home.
Don’t let that happen. Selling on short notice is easier if you sell for cash—and it will help save on mortgage fees and penalties associated with foreclosures.
When it comes to cash for houses, Salt Lake City residents can always rely on reputable companies like Favor Home Solutions for fast and efficient services.
How Long Does It Take?
One of the most frequent questions that we hear from potential customers is, “how long will it take to sell my house?”
The reality is that there are several factors involved in a home sale and, ultimately, there’s no way to predict exactly how long it will take. However, it typically takes at least 30 to 60 days to sell your home once it’s listed.
You may even want to consider listing for longer than that, especially if you want to avoid foreclosure penalties. Talk to a real estate agent about their opinion of how long it will take for you to sell your home.
Closing Costs Covered (Included)
If you don’t sell a house for a profit, then how do you make money on a sale? You do it through closing costs. Most sellers aren’t aware of all their closing costs and associated charges.
Many times, real estate agents hide these fees from their sellers because they know they can be negotiated at the time of settlement.
However, certain fees must be paid no matter what. For example, if you have a mortgage on your home and owe more than it is worth, you have to pay off those obligations before closing—and those payments are usually at least 2 percent of the sale price!
In addition to paying off lien holders or settling a bank account balance, other closing costs may include commissions or transfer taxes.
Conclusion
You should avoid foreclosure by all means possible.
A foreclosure will damage your credit score, it could lead to late payment penalties and high interest rates for years after you’ve sold, and you’ll end up losing tens of thousands of dollars (sometimes more) in equity.
Unfortunately, these problems are unavoidable if you let a bank take over your home. However, there is a way out: you could sell your home for cash instead.
