Are you looking to avoid foreclosure? In today’s economic climate, it’s an unfortunate truth that many homeowners have to consider the possibility of or are already dealing with the threat of foreclosure. What can conflate the concern for many is the misunderstands that exist around foreclosure and how it works. Some might think that if your house is close to foreclosure or already in pre-foreclosure, you are out of options. That’s simply not true. That said if you suddenly find yourself in a bad financial situation and need to sell your house in Lincoln, NE fast, trying to do so while in pre-foreclosure and foreclosure can feel impossible.
If you do want to avoid foreclosure in Nebraska, there are some specific steps and processes you can take to hold off on foreclosure proceedings. Many of these processes can even end with you maintaining ownership of your house. Whether you decide to file for bankruptcy, apply for a loan modification, or sell your house as-is for cash to a real estate buyer like Element Homebuyers, it is entirely possible to delay and even avoid foreclosure altogether. This is true whether you’ve got some time or you’re coming up on a deadline fast. Let’s take a closer look at some ways you can avoid foreclosure in Lincoln, NE.
Options When Facing Foreclosure In Lincoln, NE
File for Bankruptcy
If you find yourself in a situation where you are very close to losing your Lincoln house to foreclosure and the lender is about to take over ownership but you’re not ready to move, you may just want to go ahead and declare bankruptcy. Doing so will stop all foreclosure proceedings immediately regardless of any deadlines the lender may have set. This happens because the law dictates that an automatic stay goes into effect that supersedes any bank deadlines. It also prohibits the lender from collecting on any of your debts while the bankruptcy process plays out legally. If nothing else, this will buy you some time to figure out what you will do next.
There is a caveat to consider, however. Your lender may file a motion for financial relief during your bankruptcy stay. The court may or may not grant this motion, but if they do that could allow them to continue the foreclosure process on your Nebraska house. However, even if the court does approve the motion, it will delay foreclosure for at least one month, which still gives you a little bit of time to sort yourself out.
While this sounds like a no-brainer in one respect, there are some serious concerns that you’ll want to be aware of when you declare bankruptcy. There are consequences that come with declaring bankruptcy that will follow you for some time. First, your credit score is going to take a significant drop, which will make it much harder for you to get loans or mortgages in the future. You also won’t be allowed to declare bankruptcy again for a long time, so this is not an option you’ll be able to use again if you find yourself in a similar situation soon after. Also, even though you’ll be in bankruptcy, your creditors will still be able to attempt to collect what you owe in various ways, including wage garnishment.
Apply for a Loan Modification
While bankruptcy can pit you and your lender against one another in a bitter showdown, there is a different route you can take that might allow for both sides to work together. Before you declare bankruptcy on your Lincoln, NE house, reach out to your bank or lender and apply for a loan modification or a different foreclosure avoidance possibility that they offer. Not only will this slow down the foreclosure process but it can also give you a chance to get back on track and stay in the bank’s good graces.
What you are asking for with a loan modification is for your lender to provide you with revised terms on your loan that will make it easier for you to pay or catch up. While a loan modification is pending, your lender is restricted in the foreclosure process, so it’s also a way to buy yourself some time before they can take back ownership of the house. If they approve the modification, that will not only end the foreclosure process but it will provide you with a fresh start and a new payment plan. This is a win-win for both sides as you’ll get to keep your house and the bank can avoid the messy foreclosure process that can often be a legal and timely problem.
This process relies on your lender or bank deciding that they want to do a loan modification on your Lincoln house. And even if they do agree to do it, you will still need to make payments under this new schedule. If you fail to make these new payments when required, you could find yourself right back where you started and without the option to do another modification. So if you are concerned you won’t be able to make good on future payments even with a modification, this might not be the route for you.
File a Lawsuit Against Your Bank
If your lender is attempting to foreclose on your property using a nonjudicial process (one that happens outside of the Nebraska courts), you might be able to stop them by filing a lawsuit against them in a Lincoln, NE court. This only works if the foreclosure process isn’t already being handled through the courts.
You will have to prove that your lender shouldn’t be allowed to move forward with the foreclosure because of the extenuating circumstances that you need to deal with. This can include the lender not acting in accordance with Nebraska’s mediation requirements, not being able to prove it owns the promissory note on your Lincoln property, violating the Homeowner Bill of Rights in the state of Nebraska, not following all the requirements of the foreclosure process, or making any kind of major error that you’re able to prove.
Before you file a lawsuit, it’s important to remember that it’s very possible you won’t win. If you lose, all you will have accomplished is a slight delay, not to mention all the money you spent on legal fees. And if your case is considered frivolous by a judge, you could end up paying court fees and for the lender’s attorney fees. So don’t make this choice if you’re either not sure you’ll win or you’re not prepared to handle things if you lose.
Sell Your Lincoln, NE House As-Is for Cash
If time is running out and you are out of options to avoid foreclosure on your Lincoln, NE, one of the best ways to move forward is to sell your house or property as-is to a real estate investor like Element Homebuyers. Whether you’re still in good standing, find yourself in pre-foreclosure, or are facing foreclosure on your Lincoln house, Element Homebuyers can make you a fair cash offer and buy your house from you within days.
You don’t need to make repairs, you don’t need to clean anything, you don’t need to sort out your financial issues, and you don’t even need to make any changes before we make an offer. We will buy your Lincoln house as-is, which means we’ll buy it in any condition and with any financial concern, including foreclosure.
Just contact us with all the details about your house close to foreclosure in Lincoln, NE. We’ll assess your property and then make you a fair offer. If you accept, we’ll pay you in cash. If you approve the sale, you set the conditions of closing, which can often be within a few days. You can walk away from the Lincoln house with cash in your hand and let us deal with the financial issues from here. Get a fresh start by contacting us today!