How to Avoid Foreclosure in San Diego
Six Ways to Avoid Foreclosure
If you are in a pickle financially, you aren’t the only one. Many homeowners are experiencing financial hardships at the moment, but there ARE solutions. Don’t let yourself get frozen with fear or shame. Here are some options for avoiding ending up in foreclosure.
If you have been making late payments or not paying at all, you know time is the enemy. The bank will eventually come in and take your house, leaving you with no place to live and a giant black mark on your credit history. It’s better to act sooner rather than later to resolve the issue.
Sell The House Quickly
In many cases, simply selling the house is the best way to go, especially if you have equity in the house. Getting your equity out of the house is a beautiful thing: you get cash and can move on with your life.
For many Americans, equity in their home accounts for half or more of their net worth. A quick sale that prevents further erosion of your financial situation may be the best case scenario available.
Selling to a professional San Diego cash home buyer like I Buy SD can be the quickest means to offload the house and may allow you to finalize the sale before another payment is due. This can save you thousands of dollars and potentially put money directly in your pocket to help you cope in these trying times.
The price you are offered for the property should come with no expenses to you (no Realtor commissions, repairs, or closing costs). At I Buy SD, we charge ZERO fees and can even provide you with cash BEFORE the close of Escrow to help you afford to move.
Borrow Against Other Assets
You can’t borrow your way out of debt, so you need to think carefully about pursuing this option. If you aren’t careful, borrowing more can just compound your problems.
If you have certain kinds of retirement accounts, whole life insurance or other financial instruments, you may be able to borrow against them to tide you over. This is only advisable if you are confident this is a short term, temporary problem and things will be back on track in the near future.
Borrowing money from family or friends is not really a best practice. If you can’t pay them back, it may cause stress, hard feelings, and socially awkward situations.
If rates have dropped since you bought the house, refinancing the property may be a legitimate means to lower your monthly payment. If you have had your wages cut but aren’t outright unemployed, simply reducing the payment amount owed may make your budget balance again.
However, this can be a deal with the devil if you don’t qualify for a prime mortgage from a bank. There are many quick money lenders out there offering what may sound like sweet deals but they can have very high interest rates and hidden costs presented in a way intended to appeal to desperate people. In most cases, that’s just a means to dig your grave deeper, not a means to fix your financial problems.
Become a Landlord
Depending on the size of the home and other details, you may be able to rent out a room to help ease your financial pain, or you may be able to pack up and move to a smaller residence yourself and rent out the entire house.
Of course, being a landlord is not a piece of cake, so this isn’t for the faint of heart. Bad tenants can make your situation go from bad to worse, so it’s also not for people who are unprepared.
Do your due diligence and research the pros and cons of being a landlord. Becoming a landlord is a business arrangement and you will need to run credit checks, show the home to potential tenants, and pay for repair costs if/when things break.
Loan Forgiveness or Forbearance
If there has been a one time tragedy in your life, such as unexpected illness or accident, your bank may be willing to work with you. They may be able to allow you to defer payment or set up a payment plan to help you get through your situation. Keep in mind that this is something you can only really ask for once for unexpected problems. You can’t call them over and over again with some new tale of woe begging for yet another extension.
If you are in real financial trouble, bankruptcy may be the way to go. Talk to a lawyer to see if you qualify. You may be able to find a pro bono lawyer to help with your case to try to keep your house.
Emergency financial measures are always stressful and always made under duress. Selling quickly may be better than losing the house. Get a fast cash offer today from I Buy SD. We will pay you cash for your San Diego house fast and can offer a very quick close. In many cases, this is the ideal solution as you get your cash, the headaches are gone, and you can move on with your life!