Homeownership is considered to be the priority goal when it comes to vision slate of Americans. It has been contemplated as a sign of financial stability among the majority of American communities since ages.
This is why, the thought of losing home can be draining, not just financially, but, emotionally as well. If you’re facing a daunting situation where you’re not able to pay the mortgage payment, or you’re already in arrears then, it’s time for you to take the complete charge and identify reliable ways to get out the labyrinth. Otherwise, it may lead to repossession of your home.
What Is Repossession?
Repossession is the stage just before foreclosure. Foreclosure occurs when you fail to pay three consecutive mortgage installments whereas, the process of repossession starts when you miss your first monthly installment. Your mortgage lender would ask you the reason but, allow you to pay the pending installment the next time. In real estate language, this stage is termed as ‘arrears’.
However, if you still lose out the due installment, you won’t be provided with a grace period. The lender will issue a warning letter against you declaring that you can be evicted from the house at any time and the lender would have the right to sell your house. To avoid such a scenario, you’ll have to repay the outstanding mortgage debts immediately. If you cross this stage without taking suitable action, your house falls in the foreclosure category directly.
Here are the best ways to avoid repossession of your home…
Evaluate Your Budget
Understanding the bifurcation of expenditures and income holds extreme importance. Many families follow specific guidelines for their monthly expenses considering the single revenue source.
- Housing – 35% (rent, mortgage, taxes, repairs, insurance, and utilities)
- Transportation – 20% (gas, oil, repairs, insurance, parking, public transportation)
- Debt – 15% (credit card, personal loan, student loan and other debt payments)
- Other Expenses – 20% (groceries, medical bills, prescriptions, clothing, and personal items)
- Savings and Investments – 10% (monthly contributions to retirement, investment portfolios or savings account)
Rendered percentage above are subject to change or are tentative as the needs and family size vary from house to house.
Mortgage Payment Protection
If your emergency funds are not apt to fulfill the payment then, the next step you can take is checking whether you’re entitled to any benefits such as mortgage insurance. Mortgage Payment Protection Insurance (MPPI) is designed to cover the mortgage payments in events such as mishap, sickness or redundancy which are some of the whys and wherefores which eventually halts your income source.
Communicate With Mortgage Lenders
The moment you fail to repay your mortgage installment you ultimately fall into arrears. In such case, the lender will contact you through legal and private mediums that are calls and letters. If you miss subsequent repayment demands, the lender can rightfully start property repossession proceedings against you. It is advised to respond to the calls and repossession notices regularly to evade such circumstances.
As a precautionary measure, you can ask your lender to modify the term or negotiate the mortgage installments to make the repayment more affordable. Also, do not pay any extra fees or monthly charges if you have already made an agreement of repaying arrears.
Rent Your Home
If you have an alternative place than your home to stay, you could move out of your home and rent it to tenants. Consider having a conversation with your lender prior migrating out of the house as they may charge a higher interest rate on the mortgage if you no longer reside there. Make sure the amount you charge as rent to the tenants, should cover the mortgage payment inclusive of the extra costs of being the landlord.
Renting your home or a lodging a part of it would help in increasing your income which aids you in faster repayment of the mortgage.
Sell Your House
Selling property in the market might not assure inevitability, but it might be the only way to stop repossession. If you are not able to keep up with the repayments or due to some financial crisis you should act quickly and sell your house.
There are several companies that make a proposal based on the current value of the property. Such companies have the cash and infrastructure organized to expedite a purchase, giving you certainty concerning price and timescale, ultimately providing you a higher value of the property. Companies like ‘Elite Properties’ buy houses within 3 days in all cash offer.
‘Elite Properties’ is one of the companies that offer you, we buy houses for cash service in New York in your crucial time.
Mentioned above are the tips to avoid repossession of your home that would surely help in your crucial times. Furthermore, you can contact reputed real estate companies in NY like ‘Elite Properties’ for smooth sailing of circumventing the repossession of your home.
Being one of the renowned facilitators of real-estate services in NYC, they assist their customers in every step. Therefore, keep patience, connect with Elite Properties.
Do you know the average time to sell a property is 1-2 months? It might take longer if your house is in a distressed condition or unsafe locality! With so much competition in the real estate market, chances of getting a good deal are less.
Don’t get disappointed and multiply your stress listening to such remarks, because it’s not always like that. There are thousands of home buyers in NY who are actively seeking a property to live. With proper home selling strategies, you can definitely rack up a favorable opportunity and sell your property fast. Therefore, keep a positive attitude and embark upon your home selling journey.
We have compiled a list of 10 easy and effective tips to sell your home fast…
1. Right Property Evaluation
Every home seller feels that his property is the best. Now, this notion doesn’t emerge due to arrogance or ego it is simply a result of the attachment one has with their house. However, this ‘attachment factor’ may become a barrier in the home selling process. Potential home buyers won’t be concerned about such things. They just want to buy a good property at affordable rates. Therefore, you should take care of the practical aspect and decide a price according to the rates of property in your neighborhood and the condition of your property.
2. Choose the Right Time
There’s always a right time for everything – This saying is true even when it comes to real estate affairs. Logically, summer and spring season are considered to be the best seasons to sell or buy a property because buyers usually explore the properties during the warm season and refrain from going out during the winter season. Therefore, you must pick the right season for selling your house fast.
3. Hire an Experienced Real Estate Agent in NYC
Never opt for a real estate agent who’s offering you services at cheaper rates. Instead, look for an experienced real estate agent who can help you find genuine home buyers. Don’t worry about their fees because they will make sure you get a quick and good deal. So, do thorough research of real estate companies in New York and choose the best one.
4. Clean and Declutter Your Home
Nobody likes a dull and depressing ambiance especially when they have to live there for a long term. Imagine a potential home buyer comes for your home inspection and all he/she sees is a cluttered and untidy home. Will they invest in such a property? To be honest, no one will be interested in such real estate venture. Remember that the first impression is the last impression. So, it’s imperative that you present the home in a decent manner. The simplest way to declutter your home is removing the unwanted accessories and sanitizing the entire space.
5. Make Clever Upgrades to Your Home
Merely cleaning the home is not enough. You have to make some clever upgrades for amplifying the overall look and pitching the buyer for a competent price. If your budget allows, start with a fresh coat of paint, repair the damaged cabinets, and ensure your plumbing, and drainage system is in working condition. In addition to this, hire a caretaker who will maintain the home until it gets sold.
6. HD Images for Property Listing
Property listing is a great way to convey to the buyers that you are interested in selling your home as soon as possible. Furthermore, the majority of people check the images on the property listing page before they proceed to contact the home seller. Poor quality images of your home can make the home selling opportunity slip off your hands. Therefore, hire a professional photographer or ask your real estate agent to do the needful. This investment will surely prove fruitful.
7. Emphasize on the Best Features
No house is perfect but, every home has a USP (Unique Selling Point). For instance, you might have a sea-facing house, or your house might have a larger space. You have to figure out the best feature of your home to convince the buyer for closing the deal in a hassle-free way.
8. Traditional Way of Advertising
In today’s world, where everyone relies on modern means of advertising, you can try advertising in a traditional way. By ‘traditional way’, we don’t mean printing ads in the newspaper, simply by word of mouth or putting a huge signboard on your home can work wonders. You can also put an ad on the backside glass of your car.
9. Harness the Power of Social Media
If you are tech savvy and don’t believe in traditional methods, try to be a little creative and adapt unique ways to advertise your home for sale because the online advertising competition is very high in real estate market. You can start by shooting a video of your home and share it on famous social media platforms like YouTube and Facebook. In addition to this, you can make a catchy post and ask your friends to share it with their contacts.
10. Behave Politely with the Potential Home Buyers
We are so focused on commercial aspects that we often overlook the power of polite behavior. Sometimes, polite behavior can invigorate a trust level on the home seller and help them crack the deal smoothly. Therefore, no matter how tired or frustrated you are, always behave politely with your potential home buyers.
These tips will surely prove to be a schlepper in selling your home fast. Furthermore, you can contact reputed ‘we buy houses for cash’ companies in NY like ‘Elite Properties’ for greasing the wheels of your home selling jaunt. Being one of the renowned facilitators of real-estate services in NYC, they assist their customers at every step. Therefore, keep patience, connect with Elite Properties, and soon you’ll find a perfect buyer for your home.