Is Selling Your Home Before Your Forbearance Period Ends The Right Choice For You?
Learn More Below About Selling Your Chicago IL Home While In Forbearance.
As the global coronavirus pandemic took hold, millions of Americans opted for mortgage forbearance to help them stay on their feet and escape the burden of an economic shutdown. This unique opportunity offered peace of mind for homeowners, knowing they would still have a safe, comfortable place to live.
Almost one year later, these periods are starting to come to an end. And many homeowners are wondering if they can sell their Chicago IL home while in forbearance. In this blog we share the various options available that may be able to help you.
is the process that allows homeowners to reduce their monthly mortgage payments, or pause them entirely, for an agreed upon length of time. For example, a 12-month agreement means you will not have to make any payments for a year and will not be at risk of foreclosure during that time.
However, when the agreement ends, the bank expects you to pay back what you owe along with interest and fees. Typically this can be done in three different ways and you’ll need to talk to your lender to see what they can do for you.
Reinstatement: This is the most common exit method from Forbearance. Reinstatement means that you pay all the back due payments plus any interest and fees in one lump sum. You then resume making monthly payments as normal.
Repayment Plan: For those who do not have funds to pay all the back-due payments, interest, and fees at one time, some lenders will allow you to spread that amount out over a period of time, usually not longer than 12 months. This amount is added to your regular monthly mortgage payment.
Mortgage Modification: This is not as common, but some lenders may allow you to modify the terms of your mortgage. In practice, this is similar to a refinance. You and the lender agree to a new set of terms for the loan and you begin making monthly payments again.
So what happens if your forbearance period ends and none of these options work for you? The unfortunate answer is the bank can foreclose on your home, and any equity you have in the house will be lost. In this scenario, the best financial move may be to sell your home to avoid foreclosure and hopefully walk away with some cash to start anew.
One thing many homeowners want to know is whether they will be able to sell their property while still in a forbearance agreement. The short answer is ‘Yes’. There are no restrictions on selling your home while in forbearance. Any proceeds from the sale price must first go to pay off the mortgage and any back-due payments and fees from the forbearance period. Anything over that amount will then go to the seller.
That means selling your property may be what you need to help get yourself back on track and avoid foreclosure. How you sell your home in Chicago IL is entirely up to you, although there are a number of considerations to keep in mind.
Using a Realtor might seem like the easiest option, but it can also be a much slower process. Selling a home on the open market (MLS) can sometimes take up to six months to close. If your forbearance period is coming to an end, a Realtor may not be a viable solution. There are also various costs and time involved, from Realtor fees and closing costs, to making required repairs and upgrades so that your home is more attractive to prospective buyers. Remember: most buyers want a house that is move-in ready!
If your Chicago IL home is coming to the end of its forbearance period and you are in need of a quick sale, then a cash buyer is one of the best options. By selling your property to a cash buyer, you will be able to significantly reduce both the time taken to sell your home and also the costs involved.
With a cash home buyer, you won’t have to pay any fees or commissions. Plus, you can sell your home ‘as-is’, which means there’s no need to make a single repair or renovation, or even clean it up.
If you are coming to the end of your forbearance period and looking to sell your Chicago IL home quickly, then Property People has your back. We understand that homeowners in forbearance need a solution that works, which is why we offer a seamless, hassle-free house buying experience.
We are passionate about helping people, and we purchase homes across Chicago and surrounding Chicagoland areas, no matter the condition. By working with us, you will not need to make any repairs, or pay any fees, closing costs, or even cleaning bills. We buy your property as-is with a fair cash offer.
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So, are you in foreclosure and want to learn how to stop foreclosure now? We’ve created free online guides to help homeowners just like you discover the best options to get out of this sticky situation.
The best thing you can do at this point is educate yourself on your options. For some people selling your home is the best option (we’ll make a fair all-cash offer on your house today, just let us know about your situation here <<). Sometimes we're able to help homeowners STOP FORECLOSURE completely, and sometimes there are other options. So, click one of the buttons above to get your free foreclosure guide.