Can I sell My Home If I’m Behind On Payments?

by | Apr 27, 2022 | Blog

Being behind on payments in Lake Nona is not an uncommon occurrence, so you should remember that you aren’t alone. We’ve compiled a list of FAQs that are probably on your mind so you could deal with missed deadlines in a calm and coordinated manner.

No one wants to be in debt after all, and pulling yourself out of it is possible with the right knowledge at your fingertips! Read on to find out:

What do I do first?

First of all, don’t panic and jump to conclusions.

As easy as it might be to Google “how can I sell my house fast in Lake Nona, FL?” to try to get out of your unfortunate financial situation, we strongly recommend not to pursue this first course of action just yet.

Schedule a call immediately with your mortgage lender or whomever you own money to. Have them explain the situation to you in full so you understand the scope of your debt. Now that this is taken care of, you may now proceed to looking at options.

What happens if I miss mortgage payments?

The first thing you’ll probably notice is that you’ll have to pay for late charges eventually. If after a grace period of ten to fifteen days (or however long the grace period is with your lender), you will be asked to pay for your fees on top of additional late fee charges.

After a few missed payments, expect a call from your lender asking to collect the late amount as soon as possible. Depending on when you can pay them back, you might be at risk of foreclosure if you don’t pay appropriately.

What are some of my options?

The first thing you can do is to attempt to sell your property in order to recoup some or all of your debts. Your real estate agent can help you prepare loan closing documents. Your bank and/or mortgage lender will generally sign off on this if they’re confident that you will give the profits back to them as payment for your missed mortgages.

There are some instances wherein you won’t be able to pay off everything at once even with a property sale. Because of this, you might want to open payment plans up for negotiation.

How does a short sale work?

A short sale is essentially you immediately selling property even though the amount you sell it for won’t cover the loan amount in full. This may prove to be quite troublesome for strict lenders, but not a problem for others. Some lenders will still accept this arrangement because they’d rather not go through the process of foreclosure or bankruptcy with their client.

To try to get approved, make sure you agree to an appraisal if your lender wants to push through with one. An offer letter and a hardship letter need to be approved as well, so try to have these in with them as soon as possible.

When does foreclosure officially start?

Foreclosure generally begins a whopping 120 days after you’ve failed to pay your loan payments. The foreclosure may begin sooner however, if a due-on-sale clause is violated by you or you find that the servicer is joining the foreclosure action of a subordinate or superior lienholder.

When faced with foreclosure, you will likely receive a warning before it’s placed into effect. Openly communicate with your lender to assess your options immediately. Foreclosure can be expensive and stressful to go through, so avoiding the process as much as possible will be key.

Ready to sell your home?

Kindred Home Properties is a cash home buyer with interest in Lake Nona, FL properties. We buy properties in any condition, so no need to worry about permits, repairs, commissions, extra fees, and more!

To get started, head over to our homepage and fill out the form you see. We’re excited to offer you a 100% fair cash deal as soon as we can!

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