We buy houses in Midway City California. We are homebuyers in CA and if you’re facing a foreclosure sale, you need to understand how best you can protect yourself and your family moving forward.
What Sellers Need To Know About Foreclosure Effects In Midway City CA
Although foreclosure is never a good thing, it’s not your financial world’s end. Here’s what sellers need to know about Midway City’s foreclosure effects to plan for future property ownership properly.
Ability To Collect Sale Proceeds In California
Most homeowners are often far removed from the process when the bank forecloses on a house. The bank took over the property because there were no payments made by the owner. What many homeowners do not always realize is that there is still a chance of getting some money out of the property.
Banks are not involved in the business of making money on properties by buying and selling as an investor in real estate. The bank is trying to regain its investment in the amount of mortgage. If a foreclosed property meets the lien value, the surplus goes in most states to the former owner.
To keep the property as much as possible is an important thing to remember. Many foreclosures were bought in complete disrepair due to frustration and rage on the property being taken from former owners. Keeping the property in pristine condition can yield higher sales and therefore return the money as a little consolation to the former owner.
Credit Effects Over Time With Foreclosure In CA
Foreclosure greatly affects your credit. In addition to the mortgage’s late or non-payments, property forfeiture can drop two hundred or more FICO points in credit scores.
For seven years, the mortgage itself sits on credit scores, just like a bankruptcy With a good payment history on credit card and auto loans, restoring credit will happen immediately. Most mortgage lenders will not grant a loan to someone with a foreclosure for at least three years from the settlement date of the foreclosure (sale date).
Depending on the circumstances behind the foreclosure, some lenders will consider another mortgage earlier than the settlement date, but not before two years. Considered hardships included a job loss or severe illness or death. These need to be well documented and the circumstances leading to the foreclosure need to be addressed before a new loan is approved.
Potential To Getting Home Back In Midway City
There is one way that some homeowners can reclaim their homes even after the foreclosure sale has taken place. This is called redemption and is available through a judicial foreclosure for homes seized.
The former owner has one year to complete the redemption if the home is eligible for redemption. The redemption requires paying the new owner for the previous mortgage’s total balance and paying the new owner for any repairs and maintenance.
Sell My House In Midway City CA
While foreclosure process is a tough experience, it’s not the end of the world and you can acquire another home. In most cases, purchasing another home with smart credit repair will happen much earlier than many participants expect from foreclosure. If you think you need to sell your house in CA fast, call Premier Property Buyers. We are your local California home buyers who offer cash for houses in Midway City and we can help you.