We Buy Houses In Arkansas, and we know that local Arkansas homeowners who are facing a financial challenge may find themselves in foreclosure. If you own a property that’s causing you stress, then you may have a way out of this tough situation. We are Arkansas home buyers, and we’ve helped other people in stressful situations, especially foreclosure.
Foreclosure is when the mortgage loan doesn’t get paid back and the bank begins the process to take ownership of the property to recoup its losses.
If you find yourself entering the foreclosure process, you might wonder if there is anything you can do about it. In this blog post, you’ll read about a few foreclosure prevention measures in Arkansas that you can take to keep your home from foreclosure.
Foreclosure Prevention Measures In Arkansas
If you want to prevent foreclosure, these prevention measures might not all work in your situation, but we’re telling you about them so you can make the decision for yourself:
1. Pay Off Your Mortgage In Arkansas.
The quickest and easiest way to end the foreclosure process is to pay off your mortgage. After all, this is all the banks wanted in the first place so they would be happy to let you stay in your home and they get their money back. Admittedly, this is not always possible, which is perhaps the reason that you’re in foreclosure in the first place.
2. Work Out A Deal With Your Bank In Arkansas.
Sometimes, you can work out a deal with your bank where you sit down with a mortgage or foreclosure specialist and talk to them about changing the structure of your mortgage. Perhaps your payments get spread out so they are lower each month, for example. Just make sure that the deal works for you — you don’t want to just repeat the process.
3. Do A Short Sale In Arkansas.
A short sale is when you sell the property and use the proceeds of the sale to pay down or pay off your outstanding amount with the bank. This keeps a foreclosure from impacting your credit score, and it gets the bank off your back!
4. Give Your Deed In Lieu For Your Property In AR.
Another option would be a deed-in-lieu-of-foreclosure, which basically means that you will hand over the deed to your home to the bank and they agree not to put you through foreclosure. This will often only work if your house is worth approximately the amount owing on the mortgage. If not, the bank may pursue the difference.
5. File For Bankruptcy In Arkansas.
In some ways, bankruptcy is far more dramatic than a foreclosure because it impacts your whole life. However, once you file for bankruptcy, the foreclosure process has to stop, so it’s still a foreclosure prevention measure.
Cash For Houses In Arkansas
If you’re not sure which one to do, consider this: If you can afford payments and you want to stay in the property then a foreclosure workout arrangement (#2) is probably your best option.
If you want to put everything behind you and move on with your life, then you can sell your house in Arkansas and pay off your mortgage with that money. If you’re wondering, “How do I sell my house in Arkansas and avoid foreclosure?” we at 365 Property Buyers can help you. We are local homebuyers in Arkansas, and we make the entire process easy so you can proceed with the new chapter of your life.