What is Foreclosure?
Foreclosure is a term you might hear when economic times get tough. Foreclosure happens when someone who borrowed money from a mortgage lender to buy a house is no longer able to make their monthly payments on that mortgage.
When the payments stop coming in, the lender sells the house in order to make back the money they’re owed. This leaves the owner of the house to quickly find a new place to live.
Nevada Foreclosure Process
Foreclosures in Nevada follow a specific process. First, you’ll receive a notice of default. This does not mean that your house will definitely become a foreclosure. It just means you’ve missed a payment.
After the notice of default, the next step is a foreclosure danger notice. The foreclosure danger notice is required by Nevada law. It informs the homeowner of their risk of losing their home to foreclosure. This notice must be given at least 60 days before the foreclosure sale.
Receiving a foreclosure danger notice may be stressful, but remember that this notice does not necessarily mean it’s too late for you to retain ownership of your home. This notice will contain phone numbers of foreclosure prevention agencies who can work with you to avoid the final foreclosure.
The final step in the foreclosure process is the notice of the foreclosure sale. You’ll receive a notice that your home is being posted for sale. There are many things that you can do to help prevent getting to this final step in the foreclosure process.
How To Avoid Foreclosure
Foreclosure isn’t easy on anyone. Not only does it leave a dent in your credit score, but it’s also tough on individuals and families to have to move so quickly, especially when these families are experiencing financial difficulties.
So when money is getting tight, and you’re not sure if you’ll be able to make your monthly payment, what options do you have? We’re here to help you look at all your options. Look into these four things before you turn to foreclosure.
If you’re headed in the direction of a foreclosure, there are people out there whose job is to help you figure out what your options are, and how you can best avoid foreclosure. Foreclosure counseling will not just help you find the best course of action, but counseling will also ensure you understand your rights, such as your right to mediation.
The right to mediation means your lender must work with you to find opportunities to avoid foreclosure. Your lender also cannot foreclose unless your payments are 120 days late. With knowledge of your rights, you’ll be able to confidently make an action plan to avoid foreclosure.
One of the options a foreclosure counselor will help you look into is your options for loan assistance. There are various government programs available to help homeowners avoid foreclosure. The Federal Housing Administration (FHA) is one of those programs that can help you maintain ownership of your house.
If you are a veteran, there are even more options available. The Veteran’s Affairs Loan Center offers assistance to veterans with delinquent mortgages.
Loan modification is one option to make it easier for homeowners to meet their monthly mortgage payments. Modifying the loan usually involves obtaining a lower interest rate, a longer repayment period, or principal forbearance. Forbearance is when some or all the amount owed on the loan is made due at a later date.
Loan modifications are really useful for homeowners who’ve had a recent drop in income and need more affordable payments or those who need a temporary length of time to get back on their feet and find financial stability again.
Loan litigation is for homeowners who have dealt with unfair or illegal practices from their lenders. If you have a legal claim relating to your mortgage, you can work with a lawyer to file a lawsuit against your lender.
During loan litigation, your lawyer will negotiate on your behalf to either reduce or in some cases, invalidate your loan. If your lender hasn’t been acting in good faith, this may be the path for you.
List Your Home For Sale
Your home is a valuable asset. If the mortgage payments are becoming difficult to make, you may want to list your home on the market, and pay back that loan. The Nevada housing market is currently in good shape, so it’s possible your home is now worth more than when you bought it. Selling will likely allow you to pay back your loan and possibly even walk away with some cash to put toward a more affordable home.
If you’re looking to avoid foreclosure, it’ll be most beneficial to sell quickly and get a strong price. For these purposes, Homie is an awesome option. According to an independent study, Homie homes sell faster and for higher prices than homes listed with traditional brokerages.
You’ll also likely want to avoid all those pesky commission fees, so you have some money left over at the end of the sale. Reach out to our team at 702-879-5829 to talk about how much you can save when you choose to sell with Homie, for a low fee.
Considering Selling to an iBuyer? Read This First.
It’s common for people who are close to foreclosure to turn to iBuyers. iBuyers are instant online offers and can seem like a quick and easy solution to your problem, but they nearly always offer much less money than you could get for your home otherwise. Click here to get our full case study conducted by real sellers who saved thousands by selling with Homie instead of selling to an instant offer company.
Remember You Have Options
The important thing to remember when you’re struggling to keep up with mortgage payments is that you have options. You worked hard for your home, so you deserve to keep it. Utilize the tools available to avoid foreclosure, and you’re sure to find a way to remain a homeowner.
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