In this article we will discuss how to stop foreclosure, navigate the process and discuss strategies and alternatives to foreclosure so that you can sell your house fast in Indianapolis. Last updated on January 24, 2020
Selling A House While Facing Foreclose Can Be Challenging. But It Doesn’t Have To Be. Falling behind on a mortgage payment or two isn’t the end of the world. While banks report monthly to credit reporting agency’s, missing a payment won’t have a significant impact on your credit score. You will likely receive a notice or two in the mail from the bank, but catching up on back payments will resolve the problem. However, it’s when you fall three to four months behind, that banks begin to take action to protect their investment.
Foreclosure can be an extremely difficult and overwhelming event. Banks don’t like it anymore than you do and most want to work with homeowners to resolve the issue, only resorting to foreclose once all other options are exhausted. Many banks in Indianapolis have what’s called “homeowner assistance” programs designed to restructure payments to assist you in getting caught up. However, if you fail to fulfill program guidelines and banks will be forced to begin the foreclosure process. It can take up to a year for a bank to repossess the house and evict you from the property. But know this, the more time that passes the more banks invest in the repossession process and the more recalcitrant they will likely be towards resolution.
One word of advise when facing foreclosure or any financial crisis, it doesn’t help to hopeful. It is human nature to hold out for hope; hope that the situation will improve or resolve itself. Hope is not a bad thing, but waiting for things to work themselves out burns up precious time. When facing foreclose in Indianapolis, you should know that time is not on your side. The clock starts ticking the day you miss your first mortgage payment.
If catching up on back payments isn’t likely to happen, there are a few options you can entertain. You can alway surrender your Indianapolis house back to the bank and walk away. This will speed up the foreclosure process so you can put it behind you faster but it will still adversely affect your credit. Foreclosure will also make it nearly impossible to get financing for another house for up to 7 years. That’s a long time to be a renter! Additionally, you will be surrendering any and all equity you have in the house. You’ve worked hard for that money, you shouldn’t just give it away!
If your house is in good shape and in move-in ready condition, you can list your house with Ittenbach Realty, LLC a full-service real estate agency and sell it on the open market to a prospective homeowner. This process does take some time so you need to be proactive and get the ball rolling sooner rather than later. As you progress through the foreclosure process, this option becomes limited. If successful, you can get out from under foreclosure with minimal impact on your credit.
But what if your house is in less than “move-in” ready condition? If your house is in need of serious TLC, it can be increasingly more difficult to sell it on the open market. Major repairs for an out-of-date house may be out of financial reach for most home buyers. Either the won’t have the additional funds necessary to make repairs or invest in updating the house or they will not have the desire or experience to be confident enough to undertake such a project. If this describes your situation, then take hart as there is another option you can pursue.
If your house is in disrepair or you are running out of time and the bank is threatening to repossess your Indianapolis house, take your equity and wreck your credit, consider working with a real estate investor like Ittenbach Capital, LLC. As real estate investors we buy houses from home owners facing foreclosure and in as-is condition. We offer home owners cash for their houses and can close quickly.
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Another option available to Indianapolis homeowners facing foreclosure and needing to sell their house fast is a “short sale.” Essentially, a short sales means selling your house short of what you own on it. Your bank or lender agrees to a sale price less than what you owe in order to resolve the issue quickly, minimized expense and hassle associated with foreclosure. This is a program a homeowner applies for and must meet certain criteria in order to qualify.
Criteria typically includes documentation of financial strain and limited funds and income to support keeping the mortgage. Simply put, you must be behind on your mortgage, and not have sufficient funds or income to resolve the issue normally.
In a short sale, you find a buyer that is willing to purchase the property as-is but at a lower price than what you owe. Ittenbach Capital, LLC. can help you navigate the short sale process and handle much of the necessary paperwork. Often times in a short sale we are the buyer. A lower purchase price allows us the room we need to purchase the house, make repairs and update and sell it for a profit where the existing mortgage prohibits.
Short sales do come with a price for he homeowner. First, banks are less willing to pursue a short sale or at least one with a favorable purchase price given current market conditions. Second, you will walk away without recapturing any equity you’ve earned since purchasing it. Finally, short sales to negative impact your credit similarly to foreclosure. Additionally, many homeowners are taxed on the disparity between what they owed and what the house sold for. The IRS considers this earned income and taxable. Short sals used to be more viable of an option years following the great recession, 2008 to 2014. But today they are much less attractive to homeowners and real estate investors alike.
One final solutions homeowners in Indianapolis who are facing foreclose is declaring bankruptcy. Declaring bankruptcy forces banks and other financial creditors to halt collection efforts against you. With bankruptcy your are still responsible for any debts you’ve acquired but the courts work with you to set up a repayment plan. This does alleviate the some of the strain and pressure of debt but will, like foreclosure, adversely affect your credit and make it difficult to secure financing for many years.
We covered a lot of ground in this article, some of which may be overwhelming. That’s why we are here to help. At Ittenbach Capital, we pride ourselves on building solutions for homeowners who need to sell their Indianapolis house fast and are facing financial crisis. Give us a call today so that we can better understand your situation and discuss possible options so that you can get out from under a crushing mortgage and move on with your life.
Ittenbach Capital, LLC. is and A+ accredited business with the Better Business Bureau of Indiana. We are rated 5 stars by our clients. Click here to read what other satisfied customers have to say about us. If you need to sell your Indianapolis house fast and are looking for a professional company to walk you step-by-step through the process than you owe it to yourself to give Ittenbach Capital a call today. Call us today at 317-731-2540 for your free, no obligation consultation.