In Part 1 we talked about what a homeowner faces when he or she is foreclosed on. Now let’s look at what we can offer homeowners to help them avoid all the negative circumstances caused by going through a foreclosure.
Offering to buy the property from the homeowner can resolve most of the negative effects of foreclosure.
- Depending on the amount of equity in the home and the condition of the property you may be able to offer enough money to put some extra cash in their pocket. This can help them get into another place.
- Now that they have more control of the situation they will better know the property’s timeline and when it will be sold. This will give them time to get their affairs in order and relocate.
- This will also help save their credit. Because they missed their mortgage payments, their credit will be negatively affected, but a foreclosure would basically be a death sentence. One can recover much faster from late payments. Late payments will make it more difficult for the next year, but if they can keep up with their credit payments for one year, their credit usually bounces back with in that time. It also does not make it as difficult to get into an apartment or to qualify for new credit. They may even be able to qualify for a new mortgage on a home after a year as well.
When talking to someone facing a foreclosure you can show them it makes a lot of sense to try to resolve the matter sooner rather than later, even if it means selling the property. It will help them get back on their feet much quicker and save them from a devastating effect on their future.