The word “foreclosure” is a legal word in the real estate industry. It refers to a creditor that claims possession of a house after the borrower defaults on their loan. Creditor is a word which can describe a lender or bank. Since a house is the collateral for a mortgage loan, the lender has the right to take possession if the borrower misses a certain number of mortgage payments.

In many cases, many foreclosure proceedings don’t require the lender to go to court. In the mortgage contract, there is usually a clause which gives the lender selling rights over the property. For instance, let’s say a borrower defaults on a couple of mortgage payments. The lender will send the borrower a notice which informs them that they’ve violated the terms of their contract. From there, the lender will begin the foreclosure proceedings.

The laws of foreclosure are different in each state. In most cases, the entire foreclosure process can take anywhere from a couple of months to one full year. In the end, the lender will hold an auction to try and sell the property to the highest bidder. The borrower can still pay off their balance owed before this happens and stop the foreclosure altogether. This is called reinstatement.

The only question is, how is the borrower going to pay off that balance if they don’t even have the money to make their mortgage payments? The only way for the borrower to stop the foreclosure is to sell their home before the lender auctions it away. Once the borrower sells the house, they can pay off the lender entirely and avoid any more responsibility for the property.

Your house can be sold in one of two ways: a regular real estate sale or a short sale. When the balance of the mortgage is under the market value of the property, then a regular sale can be done. In Tulsa, you can contact us right away, and we’ll make you a quick cash offer to get things moving along. You don’t need to use realtors. Just use our contact form or phone number to get in contact with us. You’ll need to answer a few simple questions regarding your house.

Once we have this information, we will do a review of it and then make you a cash offer immediately.  If you accept the offer, we will want to come out to your Tulsa house just to see it for ourselves. We’ll ask a few more questions and then proceed with the paperwork. After you sign the paperwork, a closing date will be scheduled at a time which is most convenient for you. This is the date when cash is exchanged for ownership of the property. That’s it! You have the money for your house and the deal is done. You don’t pay commissions or fees to any realtors or contractors either. We are the no-hassle Tulsa home buyers!

However, if your house’s market value is less than the balance of your mortgage, then you’ll need to do a short sale. In such a sale, the lender or bank gets paid the market value of the house. That means they lose out on the difference between the market value and the amount owed to them. But at least they get a lot of money back because they would lose even more money if the property becomes foreclosed.

As the seller, your credit rating can somewhat be salvaged by using a short sale. Otherwise, a foreclosure would destroy your credit rating. For the last ten years, short sales have been used more frequently because of the recession and how it put so many people in financial jeopardy. They found short sales to be a better way out of their predicament.

If you’d like us to discuss your scenario with us, please contact us today.

We buy houses FAST Tulsa! Working with Us is Quick and Easy

If you choose to let us help you stop foreclosure on your home by successfully selling it first, you won’t regret it for a second. Do you have a vacant Tulsa house? Maybe you inherited a Midtown Tulsa house that is in bad condition and about to be repossessed by the bank. It’s painful to see the bank repossess houses of Tulsa families. We’ve helped so many clients get out of their foreclosure situations and reclaim their lives without destroying their credit scores. It is easier to sell your home than you might think. All you need to do is let us show you the steps so that you can get things moving along quickly. Before you know it, you’ll be moving on with your life in a positive direction.