The shelter is one of man’s basic needs; losing your hard-earned home is one hard pill to swallow. Although most people do their research before buying a house, many still fall victim to losing their property to foreclosure. Statistics have shown that 1 in every 2,767 properties in the United States has been lost to foreclosure. I know the statistics are scary; you don’t need to panic. I am here to show you how to avoid foreclosure from happening in simple steps. In this article, I am going to explain:

  • What is Foreclosure?
  • The Foreclosure process
  • How to avoid foreclosure
  • How Aniya Equity can help during a foreclosure

Foreclosure mortgage

What is Foreclosure

Foreclosure is a process whereby a borrower loses his/her property to the lender whenever he/she cannot pay or keep up with the agreed mortgage fee. The law backs foreclosure.

Most people don’t have enough cash to purchase a home or property, so they approach mortgage companies to secure loans, and they can lose such property if they can’t pay back their mortgage.


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    The Foreclosure Process

    When securing a loan, an agreement is reached to repay the loan over a definite time. This is based on the amortization plan prepared by the lender.

    Before a lender can give out a loan to you, you must present credible collateral. The lender is empowered by the law to put up your collateral for sale if you cannot repay the loan or renege on the terms and conditions stated in the binding document.

    Foreclosure process

    There are different types of mortgage packages. The type of package will determine the amount of interest charged on the principal (loaned amount). It is advised that you only take a mortgage that you can pay back within the agreed period.

    For most people, the loan is being paid monthly over an extended time. It is essential to know that the foreclosure process varies from one state to another. Still, they all have a similar method of alerting their borrowers whenever they default.

    Whenever you fail to make a month’s mortgage payment, you will receive a payment reminder/notice. If you falter the following month, you will receive a stern letter of demand. You will receive a final strict warning notice after three months of defaulted payments. Once the warning has been issued, the foreclosure department will take over the deal.

    You will usually receive a final grace period of 90 days to pay your outstanding debts. During this period, the department or the lender will exhaust several alternatives to ensure that you pay your debt. If there is no positive result during this period, the lender will move to confiscate your collateral and probably offer it up for sale.

    In some states like Tennessee, the lender will approach the court to get an order to sell your property/house. Once approved, your property will be sold to the local sheriff’s highest bidder.

    The mortgage company can also assume ownership of the property and then sell it to get back their money. In places like Texas and Arizona, the lender does not approach court before selling off the property.

    Read More: Complete Guide to Selling Your House to Cash Home Buyers

    How To Avoid Foreclosure

    Since you already know what foreclosure is, it is pertinent to understand how to prevent the situation from happening to you. If you’ve missed out on your monthly payments, it is time to be proactive. These following steps/methods will likely prevent foreclosure from happening:

    1. Communication

    Communication is one important tool. Once you’ve started missing out on payments, you need to communicate with your lender. The earlier you tell your lender about your status, the higher your chances of getting help. During the period of communication, you can ask your lender about the” loss mitigation package.”This package entails what you need to do to avoid foreclosure.

    1. Loan agreement revision

    Liaise with your lender to modify some terms and conditions in the deed of agreement. You can plead for an extension in the amortization plan. It is also possible to ask for a reduction in the interest rate.

    1. Bit by bit Repayment Schedule

    No one prays for an accident, but it can happen to anyone. Your lender may allow you to pay in bits for those months you’ve missed. Ask for a more robust period through which you can pay all your debts in installments.

    1. Take a ‘bridge money’ loan

    If you are on the verge of losing your home, the fastest means to bail yourself out is by taking a hard money loan. Once you get the loan, you can pay your lender off and get your blood pressure back to normal. High-interest rates and fees are synonymous with ‘bridge money’ loans.

    1. Use the Forbearance route

    Forbearance allows the lender to stop the foreclosure process. The loan payment halt for a specified period. It provides you with ample time to bounce back and clear your bills. A forbearance is a contract of agreement between the mortgage company and you; the agreement will be reached based on some rules and considerations.

    1. Bankruptcy announcement

    Declaring that you’ve gone bankrupt will help you forestall the foreclosure process. The court will order an injunction barring your lender or creditor from selling your home until the finalization of the bankruptcy process. The completion of bankruptcy takes 3 to 4 months. During this period, your home is automatically safe. But this may not hold if your lender/creditor has informed you way ahead of time.

    States like California have a law mandating lenders to give their borrowers at least three months of notice before putting up the house for sale. If you decide to file for bankruptcy three months after the notice, you will only have spent one month being bankrupt. With this, your lender may ask the court to lift the injunction placed on them. Once granted, your house will be put on sale.

    How Aniya Equity Can Help During Foreclosure

    What if I show you a better way of making the’ foreclosure thing’ a thing of the past. What if I told you that you can sell your house and how to avoid foreclosure?

    Aniya equity is a top-rated company, specializing in buying houses both in Tennessee and Kentucky. Unlike other house buyers, Aniya Equity LLC may be able to safely navigate you out of foreclosure, saving your credit and reputation. Whether you’re facing foreclosure, behind on taxes, going through a divorce, or tired of managing unruly tenants, Aniya Equity is equipped with several exit strategies to help you. Maybe you’re looking to downsize or relocate due to a new job, a sick family member, or other private matters. At Aniya Equity, we specialize in providing homeowners proven and time-efficient ways to sell.


    Sell Your House Fast | We Buy Houses

    For a free, no-obligation consultation call: 615-669-1610, or Fill Out This Form For Your FAIR Offer