7 Ways to Avoid Foreclosure in Fort Myers FL
You are not alone if you have fallen behind on your mortgage payments due to hardship. The good news is you have multiple options that help you catch up or get out of your mortgage all together. Below we show you 7 different options a Fort Myers, FL residence can put into action and avoid foreclosure.
Get a Personal Loan
This is not an option people want to hear but sometimes you just need to reach out and ask for help. Asking friends and family is not a comfortable situation but it is the path of least resistance compared to a bank loan. Create an agreement in writing and structure the payments in a way that you will be able to perform. Do not use this method if you know repayment is not feasible.
A loan modification is when a lender agrees to change the terms of the loan. This could lower your payment to make it more affordable, so you are able to keep up with monthly payments. When a loan is in review for a modification federal and state laws prohibit lenders from proceeding with the foreclosure.
There are underwriting guidelines you will have to meet to get approved for a modification. You will need to provide documentation for hardship to show what caused it. Also, you will need to prove your current income, showing you can repay the loan.
Not all properties will qualify for a short sale, but it doesn’t hurt to ask. Talk to your lender to see if this is an option. To complete a short sale, you must be unable to qualify for a loan modification and you can’t sell your property at a price that will cover the mortgage balance.
List on MLS
You can work with a local realtor and list your property for sale on the MLS. They can provide an analysis of the property to see what you would get on the open market. Realtors usually charge a 6% commission fee to list and sell the property. Add up all the fees and closing costs then subtract your loan balance and back payments owed to determine if you will need to come to the closing table with additional money. If you have plenty of equity you might be able to walk at closing with funds in your pocket.
Rent it Out
If you want to keep your property but can’t afford the payments think about being a landlord. Do some research to find out the rent rate based on bedroom, bath, and square feet. Only consider this If the rental income will cover your mortgage, taxes, insurance, and repairs. You will have to find another place to live that is more affordable, but it will save you from foreclosure.
Sell It Direct
Selling your property for cash to an investor is a quick and effortless way to avoid foreclosure. Depending on your situation an investor can help you catch up on your payments, pay off the remaining mortgage and put money in your pocket at closing. This is a great option to keep things simple and save your credit.
File for Bankruptcy
This is a last resort if all other options are not viable. Your credit will be affected for at least 7 years which will hinder you from obtaining future loans. Contact a local bankruptcy attorney in Fort Myers if this is the option you want to pursue.
Avoid Foreclosure in Fort Myers, FL
Give Official Cash Offer a call today to discuss any of the options discussed in our article. We are direct homebuyers in Fort Myers, FL who provide simple and fast solutions. If you are looking to sell your home fast, we can help or point you in the right direction.