How To Stop Foreclosure At The Last Minute

How To Stop Foreclosure At The Last Minute

by Foreclosure

While we try to avoid it, sometimes home mortgages are foreclosed on. If this happens, it may feel like there is no chance of saving the home or getting out of the foreclosure with compensation. However, with the right strategy and without a real estate agent, we can help save a foreclosure at the last minute. 

If you’re in this position, don’t fret. This article will give you the tools and knowledge you need to understand how to stop a foreclosure at the last minute on your Houston home.

Can I Stop a Home Foreclosure?

There are a number of reasons for facing foreclosure. At the core of it, the borrower is unable to pay their home mortgage for some reason. Other reasons include unpaid property taxes and a lien placed against the house, or natural disasters such as a house that floods. Believe it or not, an HOA owed money can even initiate a foreclosure.

Luckily, even if your home enters into the foreclosure process, you still have options. Yes, you absolutely can stop a foreclosure from happening before the official sale happens. A pending foreclosure, even a foreclosure with a due date, can be stopped with a mortgage payoff using PPS Home Buyers, or a short sale. 

Will I Lose My Home If It Enters Into Foreclosure?

Foreclosure proceedings occur when the homeowner is unable to pay for their home mortgage and fall behind. If a home mortgage is foreclosed on, then the homeowner will lose the house and it will be sold at a public auction. All equity will be lost.

However, there are a number of ways that you can save your home or get money for your home, including getting a loan modification to bring your mortgage payment up to date.

How Long Do You Have With a Foreclosure?

How long you have to stop foreclosure depends on how early you take action.

What are the Six Phases of Foreclosure?

There are 6 phases of foreclosure: 

  1. Payment default
  2. Notice of default
  3. Notice of trustee’s sale
  4. Trustee’s sale
  5. Real estate owned (REO)
  6. Eviction

Once you have a missed payment past 90 days, the borrower gets a foreclosure notice or notice of default. This is a public notice that gives the borrower 30 days to remedy the past due amounts before the formal foreclosure process starts.

If the amount is not remedied, then the home will go to trustee sale, usually in a nonjudicial foreclosure. In this case, the borrower would get a notice of trustee’s sale. 

Unfortunately, nonjudicial foreclosures can move rather quickly, leaving little time for a homeowner to stop a foreclosure. Foreclosure auctions can happen as quickly as 2 to 3 months after the notice of trustee sale or after the notice of default. You’ll need to act before you get to this point.

How Long Does it Take to Stop a Foreclosure?

The length of time it takes to stop a foreclosure will depend on the team you have on your side. Luckily with PPS Home Buyers, we buy houses fast. We can finalize a home buy-out and stop a pending foreclosure if you reach out in time.

Our process is simple: we quickly sign a purchase agreement with the seller and show that to the mortgage company. They then agree to the payout, which allows us to go through with the title process. Our title team only takes 24 hours to turn around a new title. In most cases, we can close a pending foreclosure in less than a week!

When Is It Too Late to Stop a Foreclosure?

While more time is helpful to stop a foreclosure, our expert team at PPS Home Buyers can stop a foreclosure sale that is less than a week away. These factors will depend on the availability of the mortgage company. Until it’s gone to the foreclosure sale, it’s never too late for foreclosure prevention tactics. It’s best to act early in the process if you intend to sell your house before foreclosure occurs.

Quick Ways to Stop a Foreclosure at the Last Minute

There are many ways to stop foreclosure. In essence, the borrower needs to get their account current (prior to the notice of trustee sale) or have the house bought out. But there are other options. 

Homeowners who want to keep the house can file for chapter 13 bankruptcy, which allows them to pay outstanding debts through a structured monthly payment plan. Some lenders will allow homeowners to modify the loan; loan modification and mortgage modification are highly unlikely options after the notice of the trustee’s sale. 

Another option is getting a deed in lieu of foreclosure; this gives the lender ownership of your home through a short sale but it will hurt your credit score.

If your lender is using a nonjudicial foreclosure, you can file a lawsuit against them to halt the foreclosure and challenge the process. This doesn’t work for judicial foreclosure proceedings. 

The above is not legal advice, just some helpful info. You should speak with an attorney if that is the route you wish to go. However, we can recommend a better option!

Or, you can sell your house quickly. Luckily there are smart firms out there like us at PPS Home Buyers who are skilled at buying a house that is going to foreclosure. Homeowners who are struggling won’t have to deal with lawyers, problematic foreclosure processes, or lengthy selling processes. At PPS Home Buyers, we buy your foreclosed home extremely quickly (it can be as little as 1 week) and you can move forward with your life. 

What to Do If Your Home is Pending Foreclosure

If your home is pending foreclosure, you’ve been denied a loan modification, and you’re in the Houston Texas area, then you’ll want to reach out to PPS Home Buyers for a cash offer. When you work with us, then you don’t have to file for Chapter 13 bankruptcy. 

Instead, you avoid all that and avoid the foreclosure sale and go with a short sale for cash. We offer foreclosed homes a quick cash offer through a mortgage buyout. We do all this for you, and we make this whole process far easier. We can buy your home even if there is a lien on the property.

The sooner you call us, the faster it is over with. If you don’t yet have a foreclosure date, then we know that we have more time to stop the foreclosure process. In this case, we’ll need time to call your mortgage company and order a payoff. 

Unfortunately, it takes a few days for the mortgage company to get the payoff. If we get your case early enough, then we can more often than not stop the foreclosure. There is also the chance that we can forward a purchase agreement between us and the seller to your mortgage company to confirm that we at PPS Home Buyers are in the process of buying the home to pause the pending foreclosure process.

The good news is that the mortgage company would rather sell the house than foreclose and move it to a public foreclosure auction. So once they agree to a payout, we can move quickly and give you money for your house (as opposed to nothing through the public auction). 

Our team has expert title offices to rush the title process within 24 hours. This allows us to close your foreclosure as soon as possible!

Get Money For Your Foreclosure House Before It’s Finalized

Luckily borrowers have a number of options for saving their house before a foreclosure is finalized. With PPS Home Buyers, we offer a safe and hassle-free method. 

We are cash buyers who always have the available funds on hand to purchase your foreclosed home outright and right away. We can even buy your home if it needs work and has deferred maintenance. 

With this option, your mortgage lender will still get paid (and they will get paid more than at a public auction) and you get a cash offer. This is far better than your home going to foreclosure or selling your home as-is. 

With PPS Home Buyers, we offer you safe, fast, and simple cash offers that can close within a week. Reach out today to learn more.

How Long Does it Take for a Bank to Foreclose on Your Home?

Can I Sell My House Before Foreclosure

by Foreclosure

Can I Sell My House Before Foreclosure

In the face of a financial climate that is changing by the day, many Americans may find themselves facing the unfortunate situation of foreclosure. This can happen for any number of reasons, but if you find yourself on the wrong side of a foreclosure, there are still actions you can take to make sure you come out ahead.

PPS House Buyers specializes in selling homes, no matter what the circumstances are, including foreclosure. We consistently work with hundreds of customers that ask us, “can you sell my house fast and avoid foreclosure?”

The answer is YES. Our team can help you sell your home FAST – even if you’ve already been foreclosed on!

What Happens in the Foreclosure Process?

A foreclosure on a property occurs when the homeowner fails to pay the mortgage. Basically, the owner forfeits all rights to the property when the mortgage lender is not repaid according to the terms of the mortgage loan. A missed payment or two does not initiate foreclosure proceedings.

The “trigger” event for falling behind with missed payments will vary by lender. However, once a hardship is established at the mortgage servicer, your mortgage loan might be transferred to the loss mitigation department where there is an opportunity to work out a repayment plan. The goal of the mortgage company is to avoid a foreclosure sale.

At times they will offer a loan modification, and even add missed payments and past due amounts to the balance of your loan. This can help some people facing foreclosure if they had a temporary job loss or difficult situation that has cleared up. If you can resume making your monthly payment the mortgage holder will not take further action or pursue judicial foreclosure. After all, this costs them money in legal fees.

How To Prevent Foreclosure: What if Plans Change?

If things change and missed payments continue to occur, the foreclosure process will continue to advance. If the owner cannot pay the outstanding debts they have on the property, or they can’t sell the home through a short sale, the property will be issued a foreclosure notice and eventually go to foreclosure auction. Once a foreclosure sale occurs, it’s too late for the homeowner to do anything.

It’s important to remember that if you’ve fallen behind on your monthly payments, you should reach out to your lending institution. They may be able to remedy your situation, or come up with a plan to make you current. Remember: your lender does NOT want to foreclose on your home. Foreclosure is a time-consuming and expensive process when dealing with liens, and almost always results in the lender losing money. Houses they buy back at the foreclosure sale often have deferred maintenance. This affects how long it takes to sell a house, and they know this. They’d prefer to work out a way for you to keep the property.

Can I Sell My House Before Foreclosure?

Clients often ask us, “Can I sell my house before foreclosure?” You absolutely can. It’s important to remember that foreclosure is generally divided into two processes: pre-foreclosure and the actual foreclosure.

Pre-foreclosure occurs when your bank has begun the foreclosure process, usually when the homeowner is more than 90 days late on a mortgage payment. Legally, you are still the owner of the property at this point. Your lender is required to notify you in writing that you’ve defaulted on payments.

Foreclosure, of course, means that your lender has taken the property back due to lack of payment. Once the bank has taken back ownership of the property, you’ll no longer be able to sell it, and the only way to stop this process completely is by filing for bankruptcy.

You can sell your home at any point during the pre-foreclosure process. In fact, you are still able to sell your home right up until it’s sold at auction or the bank takes possession of it. Once it is foreclosed, however, you no longer own the home. The bank owns it, so you no longer have a right to sell it. Related in Houston: how to sell a house that floods

How Long Does it Take for a Bank to Foreclose on Your Home?

The actual length of time varies by state, but generally speaking, a homeowner will have between two and three months after being served their Notice of Default before the home is completely foreclosed on. In many cases, the total length of time that it takes a bank to foreclose on your home is 6 to 12 months, depending upon how aggressive they enforce their rights after non-payment. The economic circumstances will dictate how fast they pursue foreclosure. During the 2008 financial recession, banks often delayed this process to avoid a glut of inventory.

Selling a Home in Pre-Foreclosure (Short Sale)

When a homeowner receives their Notice of Default from their lender, they have the opportunity to figure out a way to bring themselves current by paying missed payments and any associated fees. But what if you can’t do that? Selling a home in pre-foreclosure is your next best option.

Your first step should be a call to your original lender. Why? Because even if you do end up selling the home, many people find themselves on the hook for the remaining balance of the debt. Since the home is usually sold for less than what is owed, lenders can, and often will, pursue you legally for the remainder.

So before embarking on a journey to find a buyer and move the property quickly, speak with your lender and make sure that the sale will satisfy your debt in full. They’ll have to agree to forgive the remaining balance on your mortgage, but many are willing to work with you.

Can I Sell My Houston House Fast and Avoid Foreclosure?

You bet. It’s best to try and avoid foreclosure at any costs, as it will do a lot of damage to your credit score, and makes it difficult to get a loan in the future.

Some homeowners will opt for a short sale, but that can sometimes be burdensome and time-consuming. Not to mention the fact that lenders really do not enjoy short sales – it all but guarantees they’ll be losing money on the mortgage. Working with a home-buying company like PPS House Buyers is a better option for unloading your property quickly while receiving a cash payment. Remember, working with us means you can sell your house without a realtor.

Working with a company that buys houses fast in Houston for cash, no matter the condition or financial burden, is key to avoiding a complete foreclosure. It’s a fast option for homeowners to avoid the crushing impact of foreclosure on their credit score – most transactions are completed within a couple of weeks. This will allow you to receive a quick payment and pay off the majority of what is owed before being foreclosed on.

Reach out to us today to see how we can help. Let us know your property address, and we’ll make you a fair cash offer today. We’ve worked with hundreds of homeowners, just like yourself, and we want to help you navigate your way through this confusing process.

Do I Have to Pay the Capital Gains Tax When I Sell My Home?

Do I Have To Pay the Capital Gains Tax When I Sell My Home?

by Any ConditionDebtDivorceDownsizingForeclosureHome InvestorsInheritedLandlordLiensMortgageRelocationVacant

It’s a good feeling when you’ve sold your house – you can relax, focus on finding a new home and hopefully walk away with extra cash in your pocket. However, some homeowners must deal with the IRS getting a cut of the sale, which makes the capital gains tax one of the biggest concerns when selling a property. Fortunately, there are a few strategies that can help you avoid paying this tax and hold on to more of your money.

What is the Capital Gains Tax?

The capital gains tax is a government fee you pay to the IRS when you make a profit from selling financial investments such as stocks, bonds or tangible assets like cars, boats and real estate you’ve owned for at least one year. Therefore, when you sell your home for more than you paid for it, you might be subject to this tax. Of course, selling your property for a profit is the goal for any seller, and one reason working with an experienced real estate agent is important.

When you make money from selling a property, you will be forced to pay either a short-term or long term capital gains tax depending on whether you resided in the house and how long you lived there. Depending on the amount of time, there are short-term and long-term capital gains.

With short-term capital gains, you pay higher taxes on properties you’ve owned for less than one year because short-term capital gains are taxed at the same rate as ordinary income, which is usually around 25%. With long-term capital gains, you get the benefit of a reduced tax rate that typically doesn’t exceed 20%.

The IRS also has exceptions for capital gains taxes on real estate. If you’re single, the IRS allows you to exclude up to $250,000 of capital gains if you meet the tax requirements. Married couples are allowed to exclude up to $500,000.

For example, imagine you’re married and you bought your house together in 2009 for $300,000. The property sold this year for $900,000, which means you made a profit of $600,000 over ten years. In this case, the IRS will exclude $500,000 of the $600,000, but they will tax you a percentage of the remaining $100,000. (Of course, selling a house in divorce will bring different considerations.)

For another example, imagine you’re single. You purchased your house five years ago for $100,000 and sold it this year for $250,000. The government will not tax you on the $150,000 profit you made as long as you’ve followed the criteria to avoid capital gains taxes. While the best plan of action is to speak to a real estate agent or tax person, here are some guidelines.

How to Avoid the Capital Gains Tax

You can typically take advantage of the capital gains tax exemption if you meet three requirements:

1.You’ve owned the home you’re selling for at least two years.

2.You’ve lived in the house as your primary residence for at least two years of a five-year period, even if the two years you lived there weren’t consecutive.

3.You haven’t sold another property and claimed the $250,000 or $500,00 tax exemption in the last two years.

If you are disabled, in the military, or affiliated with any other government protection service, you may be able eligible to avoid the capital gains tax, as well.

If you don’t meet the above requirements and your property isn’t exempt from the capital gains tax, here are a few strategies to minimize or reduce it:

⁠—

Keep the receipts for your home improvements to use toward exemptions so you don’t miss out on claiming all value you added to your house while living there. You’ll need records and receipts when submitting your taxes.

⁠—

Turn your primary residence into a rental, which will provide a way to cover your mortgage while you live elsewhere. To be exempt from the capital gains tax, however, you’ll need to limit how long you rent it. After three years, it’s considered an investment property.

⁠—

Investors can also look to Tax Code Section 1031 to profit on business or investment properties without paying capital gains tax. This tax code allows you to trade “like-kind” properties to avoid paying taxes on the initial profit.

⁠—

Lastly, you can move into your investment property. If you live in your property for at least two years, it changes the nature of your property from an investment property back to your primary residence. You’re then eligible for the capital gains tax exemption.

To learn more about avoiding the capital gains tax or for assistance selling your home, please call PPS House Buyers at 281-306-5055 or fill out our simple online form.


Contact Us Today!