How to Avoid Kansas City Foreclosure
We have come a long way from the time just a few years ago when Zillow showed almost 1600 homes were in foreclosure in Kansas City. Many are experiencing hard times once again because of Covid-19 and our inability to go to work. For the moment, lenders and landlords are doing all they can to keep you in your home. It may not be enough when this is all over. How to avoid Kansas City foreclosure.
How to Avoid Kansas City Foreclosure
- Contact your lender and level with them. Your banker does not want to own your house. When you come clean about your financial situation, he may be able to modify the loan, offer forbearance, or give you re-payment options.
- Loan modification could include a reduction of the interest rate, conversion from a variable interest rate to a fixed interest rate, or extend the length of the term of the loan. A loan modification agreement is a permanent solution to unaffordable monthly payments.
- A forbearance agreement provides short-term relief for borrowers. With a forbearance agreement, the lender agrees to reduce or suspend mortgage payments for a certain period and not to initiate a foreclosure during the forbearance period.
- Re-Payment options could include a plan to repay missed payments in addition to making monthly payments, especially if there is a temporary hardship
Understand the Foreclosure Process:
- You are in default if you miss a few mortgage payments. Your mortgage servicer will probably send a letter or two reminding you to get caught up, as well as call you to try to collect the payments. Avoiding Kansas City foreclosure means don’t ignore the letters. When the lender issues a notice of default, you will have not less than 30 days to cure the default. You can cure the default by bringing the loan current with the lender and paying the late fees. Because Missouri is a non-judicial state, there are very stringent notice requirements.
- The primary method of foreclosure in Missouri involves what is known as non-judicial foreclosure. This type of foreclosure does not involve court action but requires notice. When you buy a house, you sign a deed of trust. It will usually contain a provision called a power of sale clause which upon default allows a trustee to sell the property to satisfy the underlying defaulted loan. The trustee acts as a representative of the lender to initiate the sale or auction. Because this is a non-judicial remedy, there are very stringent notice requirements, and legal documents are required to contain the power of sale language to use this type of foreclosure method.
- Contact a credit counselor. The objective of most credit counseling is to help the creditor avoid bankruptcy, as well as provide primary education on financial management. Many counseling services also negotiate with creditors on behalf of the borrower to reduce interest rates and late fees.
- Contact a bankruptcy attorney. That sounds contrary to taking responsibility, but you need to know your options so you can make informed decisions.
- Contact a professional real estate investor. You may want to sell your home fast to get out of the problem or to save your credit rating. Terra Firma Property Solutions, LLC, is here to help homeowners out of any stressful situation. As investors, we can help homeowners out of just about any financial situation, no matter what! There are no fees, up-front costs, commissions, or anything else. We offer the simple truth about your home and how we can help you sell it fast to resolve any situation.
In summary, how to avoid Kansas City foreclosure involves your ability to recognize approaching trouble, contact your lender, and seek professional help.
Terra Firma Property Solutions, LLC is a professional, full-service real estate solutions firm that buys and sells properties throughout the greater Kansas City area. We specialize in buying distressed homes, then renovating and reselling them to home buyers and landlords. Terra Firma Property Solutions is excited to be part of the economic rejuvenation of Kansas City and its surrounding areas.
Call us today at (816) 866.0566
