If you can see your house leading to a foreseeable foreclosure and you think that there’s no way out, think again!
This dark phase in your life doesn’t have to end in despair. Don’t leave your chances to foreclosure and wish everything will fix itself.
Sell your house before foreclosure. There are several reasons how this decision could benefit your finances in the long-term.
1. Save Your Credit Score
If your house is foreclosed, your credit score will be greatly affected. And since having a house foreclosed under your name brings down your credit score significantly, selling a house can be a better alternative for some people.
If your credit score dives down deep, you become a potential risk in the eyes of money-lenders like banks. This means a dramatically reduced chance of getting approved for a personal loan, business loan, car loan, or any similar program in the future.
2. Get a Chance to be Approved of Future Loans
A home foreclosure turns you into a defaulter, a tag banks and other financial organizations deem clients who have failed financial obligations. It could take you decades to improve your credit score and so the financial misfortunes could continue for you as well.
In addition, if you’re unable to repay loan on a mortgaged property, say goodbye to any future mortgages since no financial organization would put trust in you anymore.
If you’re weighing between selling a house fast or succumbing to foreclosure, know that selling your house is the option that could help straighten your finances.
3. Avoid the Loss of Equity
Generally speaking, if a house (or houses in a particular area) sells for less, it would most likely result in your loss of equity.
This is particularly true when you let your house get foreclosed. In most cases, after seizing your property, the debtor (a bank or other type of financial organization) puts your former property on public auction to recover the amount.
If you sell your house before foreclosure, you’ll prevent your equity from falling negative.
4. Prevent Future Issues with Renting and Buying Other Properties
One problem of getting your house foreclosed is that it gives you a defaulter status. Unfortunately, landlords and property owners could access your file after a background check, see your status, and opt not to risk renting out or selling their properties to you.
If you chose to sell a house before foreclosure, you won’t have a defaulter status and you’re not going to face issues with renting or buying properties in the future.
5. Bring Back Order into Your Life
Dealing with debt can put a strain in marriages, business partnerships, and almost all aspects of a person’s life. If you’ve felt losing control over your finances for months or years on end, there’s a good chance that selling your house could give you a breather.
By selling before foreclosure, you might even find yourself happier and more hopeful of being able to bring back order into your life.
Of course, selling vs. foreclosure isn’t always the best idea. It would depend on a case to case basis. However, if this is a feasible option, weigh the pros and cons of selling before foreclosure. The answer to your financial woes may just be the very thing that’s burdening your finances.
Let CashoutCasa.com help you sell your houses as is, quickly and hassle-free. Fill out this form to get a cash offer and we’ll go from there.