Evictions can be stressful. If you have received notice that your landlord or property manager wants to move forward with an eviction lawsuit, the best thing to do is to work with your landlord or manager on a solution that works for both of you. In some cases, you might be able to move out prior to an eviction lawsuit getting filed, which means that your eviction history report will not reflect an eviction.
We’ve put together some information to help you understand the eviction process, your rights as a renter and what resources are available during an eviction.
What Is An Eviction?
An eviction is a lawsuit filed by a landlord or housing provider against a renter. It may result from the renter not paying rent or violating other provisions of their rental agreement. Eviction is the formal legal process that allows a landlord to force a tenant to leave their rental property. In order for an eviction to be valid, the landlord must give notice to the tenant.
What Are Your Options?
If you have a problem with your mortgage, you should contact your lender immediately. It will help you work out a solution that keeps your credit intact and avoids foreclosure. The foreclosure process is not easy on anyone, especially lenders eager to get paid. Remember, they don’t want you to default on your payments; they would rather work with you than take your home outright. Contacting them first will give you the best chance of knowing your options and working out an arrangement.
Lenders generally charge $50,000 to foreclose on a property. This can be a substantial amount of money, especially if you are paying for any improvements or repairs yourself. Some lenders may offer you other options:
- Loan modifications. The lender may adjust the interest rate or repayment term, making the loan more manageable.
- Refinance. If you have good credit and sufficient equity in your home, you may be able to get a refinancing loan to repay your current mortgage. Refinancing loans are typically issued at lower interest rates than the current one, making it easier to pay back. You’d need enough equity in the property and a good credit score to make this happen.
- Repayment. Your lender may be able to arrange a three to six months postponement of your repayment plan, depending on the amount of your outstanding mortgage balance. You will still have to make payments on the overdue loan during this time period but the length of the new repayment plan depends on how much is still due.
- Forbearance. This option can help you to put a pause on your payments and will defer the interest that is accruing. The deferred payments will be tacked onto the mortgage at the end of your loan.
Is a Short sale or deed-in-lieu a good alternative to foreclosure?
A short sale is when you sell your house for less than the amount on the mortgage. The lender could still try to collect the remainder of the mortgage from you, once the sale is complete. You can sidestep this process by signing a deed-in-lieu of foreclosure (DILO), which transfers your rights to the property to the lender. However, if you have missed payments or defaulted on other obligations relating to the mortgage, you could still be on the hook for any remaining balance.
These are not ideal solutions to the problem, and clearly not resolutions for it. There is a lot of information out there promoting these two options, but here are two important facts you should know about.
- Foreclosure, deed-in-lieu and short sale have a similar effect on your credit rating and stay on your credit report for the same amount of time.
- If you are in a dire situation, foreclosure will let you stay in the home the longest amount of time.
If all three scenarios affect your credit adversely and you are still responsible for making payments on a mortgage, deed-in-lieu or a short sale are poor alternatives to foreclosure.
Get free housing counseling
If you are having difficulty with your mortgage, you may feel compelled to hire an independent mortgage servicer or an agency. You can avoid this expense by taking advantage of free housing counseling offered by the Department of Housing and Urban Development (HUD).
You can contact your local HUD office to request free housing counseling. Their counselor can let you know if there are any programs that can assist you. If you’re facing a foreclosure situation, be aware that scammers may try to take advantage of you in order to perform deeds they claim will help you avoid foreclosure.
Selling for cash may be the best way to go
Selling your home can be a long process, regardless of market conditions. The time involved in conducting inspections, appraisals, and other administrative steps can be too long if your credit is at stake.
If you are facing foreclosure, there are people who will buy houses with cash. If you have exhausted all options with your lender and foreclosure is imminent, but need the money to pay off debts, selling for cash may be your best bet.
This is where Casey Buys Houses can come in and help. Our specialty is working with homeowners who need a little help and want to get the highest price on their home. Casey Buys Houses will buy it in cash, so you don’t have to worry about your home sitting on the market for years. We can purchase your home with zero hassle. Buying a house as-is, in cash is the best option for many homeowners. Things can be expedited, so you can go on with your life.
When you are facing foreclosure, it can seem like the end of the world. It is a stressful situation for sure, but know that you are not alone and focus on what you can control. You can sell your home for cash and get the best offer to make the most out of this situation by working with people you can trust and have your best interest at heart. You’re not just a number or a profit or an expense to be written off—we understand that.