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How to Get Out of a Mortgage in Tulsa

I Want to Get Rid of My House

More than 60,000 homeowners in the United States wonder how they’re going to afford their next monthly mortgage payment. If enough missed payments go by, their home ends up foreclosed. This is probably something that you’re worried about happening to you too. If you’ve missed your mortgage payments, there may be some hope still left.

Financial hardships happen to people from all walks of life. Some are trying to figure out how to get out of a mortgage with an ex. Others are working 3 jobs just to pay the bills. It doesn’t matter what your income, career, education, gender, or race is. On average, more than 500,000 American families end up in foreclosure and lose their homes. Not only is this hard on them financially, but it is hard on them emotionally too. Just one missed mortgage payment is all it can take for the foreclosure process to begin. The good news is there may still be time to find a way out of foreclosure.

How do you manage this kind of situation? You can’t just take in-action because you’ll just be adding more stress to your life during the Tulsa foreclosure process. Luckily, there are several options available which can reduce your stress and anxiety. These options are effective if you cannot make your Tulsa mortgage payments or choose not to.

 

Conduct a Tulsa Short Sale or Wait for the Foreclosure to Happen

Do you want to get out of your monthly mortgage obligations? If so, then you could wait until the foreclosure process is finished or you could have a short sale. Do you know the difference between a foreclosure and a short sale? We will go over these options now.

The foreclosure laws are different in each state. However, the concept is basically the same. Financial hardship or personal hardships might cause you to stop making payments on your mortgage. Once that happens, you’ll receive a notice of delinquency from your lender which describes the options available for catching up on your missed monthly payments. If you fail to pay the missed payments and don’t even call the lender about it, then they will likely start the foreclosure process on your house. The first step is for the lender to file a Lis Pendens or Notice of Default. It all depends on the requirements the state.

When you receive a Notice of Default, it means the foreclosure process has already started. Fortunately, this is a non-judicial notice, which means your lender isn’t going to sue you in court for the balance of the loan amount owed. But what they will do is sell your property as collateral in order to recover the loan amount balance. According to your mortgage contract, they have the right to do this.

In other cases, the lender will start a judicial foreclosure process against you. Since it is judicial, it means they’re taking you to court to try and get you to pay the balance owed. A judge determines the amount you owe to the lender and when the payments are due. They’ll give you some time to make those missing payments, but not much time. If you fail to pay the money owed, then the judge will give ownership of your property to the lender. At this point, your house has been foreclosed.

All of this doesn’t just happen within a few weeks or even a few months. In many states, foreclosing a property takes years before its finalized. Usually, in the end, the sheriff’s deputies come to your home and force you to leave. They’ll give you time to remove your possessions or they’ll remove them for you. Either way, it is an emotional rollercoaster that is never pleasant for any Tulsa property owner.

 

How is a short sale different?

You have no control over what happens to your home during the foreclosure process. Your only option is to make your mortgage payments. But if you can’t do that, there is nothing else that can be done.

As for short sales, they are a little different because you are selling your home for less money than the amount owed on the property. The only stipulation is that your lender has to agree to the short sale. They might agree to the short sale if it means they’ll recover most of the money they lent you.  

When conducting a short sale, you must work with a realtor, prospective buyer, and your lender. Whether you choose the Tulsa foreclosure process or short sale process, either one will have serious consequences. So, maybe you should reconsider before taking either option.

 

Getting Away from a Mortgage Obligation without Short Selling or Foreclosure

There is nothing good about foreclosure. Eventually, the lender takes your home and resells it. Sure, you’re out of your mortgage obligation, but you’ll lose the money you’ve invested in the house and your credit will be ruined. It’ll take you 7 years before you can get approved for financing to purchase another home.

Short sales might sound a bit better, and they are. You prevent your house from being foreclosed because you actually sell your Tulsa home and receive money back for it. That money goes to your lender, of course. If the lender agrees to cancel the mortgage by allowing you to short sale, then you’re out of your mortgage obligation once the sale happens.

On the downside, you’re still required to wait years after the short sale before you can get approved for another mortgage loan. But if your credit is bad enough, you may never get approved for another mortgage until your credit is restored. Sure, your credit score only stays low for up to 7 years, assuming that you don’t make it worse by defaulting on other credit obligations. But that is 7 years where you’ll be unable to get approved for any credit cards, car loans, personal loans, home loans, etc. And even when you do get approved for credit again, you’ll have a much higher interest rate to pay. Creditors will always consider you a risk until you prove otherwise.

In some states, once a short sale is over, money may still be owed by the borrower to the lender. You see, the difference between the short sale price and the mortgage amount owed could be several thousands of dollars. The lender doesn’t want to lose that money, so they’ll file something called a “deficiency judgment” to try and get it back. This judgment requires the borrower to pay back the amount of money that the lender still did not recover from the short sale.

The outcome of foreclosure could even be worse in some states. Although a foreclosure relieves you of your mortgage obligation, your state government may treat the mortgage loan that you previously received as taxable income. As a result, you’ll owe taxes to the state government based on the mortgage loan amount that you didn’t pay back. This could be thousands of dollars in taxes owed to the government.

 

Deed in Lieu of Foreclosure versus a Strategic Default

You don’t always need to sell your house. There are other options available, such as a deed in lieu of foreclosure or strategic default. One of these options may be good for you, depending on your situation. We will discuss why some people choose to use these options to get out of their mortgage.

If someone has the financial capability to pay their mortgage payments, but they choose not to pay them, then it is a strategic default. Why would someone choose to do this? Well, if the value of a home has decreased to an amount lower than the mortgage loan balance, the homeowner has negative equity in the property. Why pay money on a mortgage for a property with negative equity? It is like making an investment into something that is already losing money.

Strategic default and foreclosure are both similar. The difference pertains to the negotiation period. In a strategic default, you can negotiate with the lender and possibly be granted extra time to leave the property. Sometimes the lender will pay you just to maintain the property.

As for a deed in lieu of foreclosure, you negotiate with the lender before the foreclosure process even starts. The lender may agree to avoid a foreclosure proceeding if you agree to transfer your deeded title over to them and leave the property.

Pros

Here are the advantages of a deed in lieu of foreclosure and strategic default. For starters, you get slightly more control over the situation because you have room to negotiate. If you choose a strategic default, you can wait for your home to be taken before you make your mortgage payments. If you choose a deed in lieu of foreclosure, then you won’t need to go through the entire foreclosure process.

Cons 

While these options might sound good, they come with risks too. Negative consequences can stem from either a deed in lieu of foreclosure or strategic default. Here is what could happen:

  • You’ll have to wait between 3 and 7 years before you’re eligible for any federal agency home loan.
  • Income tax must be paid on the forgiven debt amount of your mortgage.
  • Your credit report will be negatively affected for up to 7 years.
  • The settlement period of the foreclosure could take a long time.
  • Legal consequences could arise from the settlement period. It is even worse if you have another mortgage to carry too.

Okay, so these are risky options too. What options left are better for getting out of a mortgage quickly?

 

Selling Your Home to a Real Estate Investor or Tulsa Home Buying Company

Sell Your House Tulsa is a local home buying company. Our home buying company can purchase your home quickly. We pay full cash for your property and close within weeks. If you’re facing foreclosure in Tulsa and you need to get out of your mortgage fast, there is no better way than to sell your home to us. That way, you can save your credit, money, reputation, and move on with your life comfortably.

Let’s review the benefits of selling to a home buying company more closely.

 

Prevent a Credit Default

As previously stated, foreclosures can ruin your credit history. But if you sell your house to a home buying company before the Tulsa foreclosure process starts, then you can maintain a good credit history. In fact, you may be able to obtain another home loan or mortgage in the near future as well.

Besides, the foreclosure process could take years to finalize. Why waste years of your life dealing with foreclosure when you can just sell your home within a week? Even if you try to use a real estate agent to sell your home, that could take months because they must find a buyer for your home. But with a home buying company, they are the buyer that has got the cash to close quickly. That is how we’re able to close so quickly.

If you’ve been late making your mortgage payment for one or more months, you can still save your credit before a foreclosure process starts. There are some spectacular home buying companies which will help get you caught up on your missed mortgage payments. By the time you go to sell your home to them, your mortgage payments will already be current. Then you can continue forward by building a good credit profile for yourself.

 

Get Out of a Mortgage Much More Easily 

The best way to get out of a mortgage quickly is to pay it off quickly, right? Since a home buying company pays you cash for your house, you can use that money to pay off your entire mortgage and get out of that obligation forever. Imagine your mortgage obligation ending within a week without any negative consequences. Your stress and worries will be over in an instant.

You don’t need to negotiate much with your lender because the house buying company is not connected to them. But if you were to choose a strategic default, short sale, or deed in lieu of foreclosure, then you’d be forced to negotiate with your lender. For instance, a short sale requires you to make an offer to the lender. Most of the time, the offer fails. The same kind of thing can happen if you choose a deed in lieu of foreclosure as an option. The lender cares about what is most profitable for their interests. If these options are not profitable, then your offers will be denied. A home buying company gives you a way to pay back the lender and possibly make them money too.

 

You Get a Second Chance 

Many people go through struggles, whether physically, emotional, and financially. If you must deal with a foreclosure, it’ll be a constant headache in your life that’ll last for over a year. Why not work with a home buying company and avoid that headache? You can get a second chance at a new life without this burden in it.

If you don’t have good credit, you can’t do much. A history of foreclosure or late payments will reduce your options. Your entire financial future becomes unstable and unpredictable. No financial institution will trust you enough to give you credit. Then you can kiss your dream of homeownership goodbye.

Homebuying companies give you a second chance at a stable financial future. You’ll avoid going through foreclosure and boost your credit rating back to a healthy level again. Best of all, you’ll have your freedom back too. You won’t be obligated to make all these mortgage payments that you missed. And if you want to buy another home, you’ll have a good chance of getting approved for a new home loan. Perhaps this time around, you’ll be more successful at keeping your home than you were last time.

End your financial troubles and stress within an instant. Contact us today and let us open a door for you to a more stable and stress-free future.

 

Weigh Your Options

You’ve just learned about four options for getting out of a mortgage. It is time to weigh each option against each other carefully and choose the best one for you. Consider the pros and cons of each carefully. In the end, you should find that we will give you more benefits than any other option.

 

Come Work with Us 

Are you already late on your monthly mortgage payment? Does your Tulsa home have negative equity, so you don’t want to make your payments? Whatever the reason is for your missed mortgage payments, let us save you from foreclosure. We can buy your house quickly in cash and get you out of your mortgage obligation.

We have a proven record of exquisite customer service and experience in paying cash to purchase Tulsa homes and help homeowners save their credit profiles.

To find out more information, you can contact us by phone at 918-297-6222. Give us some basic information about your home, and we’ll give you a reasonable cash offer within just a few minutes.

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Sell Your House Tulsa

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SELL YOUR HOUSE TULSA is a local team of investors that want to find a solution for selling your house fast in Tulsa, Broken Arrow and the surrounding areas. We understand that hard circumstances can hit and individuals may not have enough money to fix up their house to sell or even keep up on inherited properties. Whatever your hassle is we want to offer you a no-hassle approach to relieve those stresses fast!

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