It can be a scary prospect if the bank is threatening foreclosure. Usually, foreclosure is the last resort a lender takes when you can’t make mortgage payments. So, apart from worrying about losing your Kansas City home, you probably have many other things to worry about. If you are facing foreclosure, it’s vital to deal with the facts and put worries to the side.
Understanding what happens during foreclosure in Missouri is the best way to avoid its severe implications. The foreclosure process in Kansas City and Missouri is similar to most other states in the country. Although it’s no fun, it’s not the end of the world.
Here at Norton Home Solutions, we have many years of experience helping Kansas City folks avoid foreclosure. We’ve put together this helpful guide to help you avoid foreclosure. You’ll find out about what to expect if your mortgage lender decides to foreclose on your home.
We’ll also guide you through practical solutions to help you navigate through the foreclosure process successfully.
Before we look at the foreclosure process in Kansas City, MO, let’s look at some of the reasons for this situation.
Reasons Kansas City Residents Face Foreclosure
There are several reasons why KC residents can’t make timely mortgage payments. Unfortunately, many of these reasons are not your fault, and facing foreclosure doesn’t define who you are. Very often, sudden, unforeseen circumstances arise, and you can’t come up with the money to pay the mortgage.
Here are a few common reasons for a pending foreclosure:
- Becoming unemployed
- Sudden illness or having to pay substantial medical bills
- Divorce
- Mortgage rate increases mean you can’t afford your mortgage
- Excessive debt obligations
- Death of a family member
Understanding the Foreclosure Procedure in Kansas City, MO
To know how to avoid foreclosure if you’re in financial difficulty requires understanding how the process works. There are six steps in a foreclosure process. Here they are:
- Missing a mortgage payment—Payment default occurs when you miss at least one payment. Your lender usually sends a notice reminding you that they’ve not received the money. If you fail to make the payment and miss the next one, you will get a demand letter.
- Notice of Default—If you fail to pay your mortgage for 90 days, you will receive a Notice of Default (NOD). Usually, you have a grace period of 90 days to settle the payments and continue paying the mortgage.
- Notice of trustee’s sale—If you can’t make mortgage payments or work something out with your lender, the bank will put the property up for auction.
- Trustee’s sale—At the sale, the property is sold to the highest bidder. The house becomes the property of the buyer, and they can take immediate possession.
- Real Estate Owned (REO)—If the house isn’t sold, the bank will take control of the property.
- Eviction—Eviction happens when the new owner gives you notice to vacate the property.
It’s vital to remember that you can stop the foreclosure in Kansas City during the first two. No lender wants to go through a foreclosure process as it’s expensive and takes time. So, never ignore letters from your bank about making mortgage payments. To prevent foreclosure, you need to work with your lender.
How to Avoid Foreclosure in Kansas City
How can you prevent foreclosure in Kansas City? What should you do if you have received a reminder notice about a missed mortgage payment or Notice of Default? Read on to learn what to do.
As mentioned, you need to speak to your mortgage lender as soon as you know you’re in financial difficulty. Ideally, it would be best if you did this before you miss a payment. Depending on your circumstances, the bank may offer some loan modifications.
Here are some options to avoid foreclosure in Kansas City:
Mortgage forbearance
Most lenders are willing to work out a repayment plan that you can afford. The lender could offer temporary respite on your loan payments, usually by reducing the monthly amount for a specific time.
Loan forgiveness
Sometimes—albeit rare—the lender could allow you to miss one to two payments without you having to repay them. This only happens if you can prove that your financial woes are temporary.
New repayment plan
Another option to avoid foreclosure is to spread out the loan payments. For example, suppose you missed two months. The lender could add $150 to each payment for a year or two until you catch up with your loan repayments.
Refinance the loan
If you have enough equity in your house, you could refinance the loan. To do this, the lender will increase the loan balance, and you will pay back the loan over a more extended period. However, you may have to face increase interest rates.
How to Avoid Foreclosure in Kansas City After Notice of Default
Your options are more limited if you have received a Notice of Default. Usually, lenders are reluctant to work with borrowers after a specific time limit. You still have time to get back on track with your payments, but you may need to make up the missed payments in a short space of time.
Here are two ways to avoid foreclosure after a NOD:
- Sell your home—In some cases, you may need to sell your Kansas City home to avoid foreclosure. Although you don’t want to lose your home, the financial implications of foreclosure are far more significant. In these circumstances, you can sell your house to a local real estate investor who buys foreclosed homes for cash.
- Short sale—Your lender could allow a short sale if your Kansas City home is worth less than the mortgage balance.
Short Sale vs. Foreclosure — What the Best Option in Kansas City, Missouri?
In most cases, it is best to go for a short sale rather than a foreclosure. Both options will impact your credit score, but a short sale is less severe. However, not all banks agree to a short sale as the process is longer than a foreclosure.
Suppose you’re facing foreclosure and can’t arrange a short sale. In that case, your best option is to sell your home to a Kansas City real estate investor.
Reach out to us at (816) 685-0260 or by filling in the form on the website. Our team of advisors is on hand to answer your inquiries about selling a home in foreclosure.
At Norton Home Solutions, we buy homes for cash, even if there are underlying financial issues. We are here to help you work out the best solution to avoid foreclosure.
How to Sell Your Kansas City House to Avoid Foreclosure
If you need to sell your house to avoid foreclosure, you need to act fast. Usually, when foreclosure is imminent, you don’t have time to sell your home through a real estate agent. Getting your house ready for sale, listing it, waiting on buyers to sort out financing takes time—something you don’t have.
The best solution is to work with a direct buyer such as Norton Home Solutions. We are ready to buy your home for cash and close the deal in a matter of days—not weeks or months. You are safe in the knowledge that our fair price offer is the amount you receive. There are no hidden fees, commission charges, or taxes to pay—we take care of everything.
Avoiding Foreclosure in Kansas City — In Conclusion
No homeowner wants to face the prospect of losing their home. However, sometimes, when you can’t make mortgage payments, the threat of foreclosure becomes very real. To avoid foreclosure in Kansas City, MO, talk with your bank first to adjust or refinance your mortgage.
If you still can’t pay your mortgage, the only other option is to sell your home to prevent foreclosure. However, even if you must sell your home, there may be ways you can still live there. That’s why we suggest giving us a call at (816) 685-0260 to help you explore all your options and avoid foreclosure.