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A federal tax lien is a legal claim the government has against your property if you do not pay or refuse to pay your taxes. A property seizure protects the government’s claim to all of your property, including real estate, personal property, and financial assets.
Home Buyers allow you to sell your home even if the property is seized. You can easily get out of the situation with Christian House Buyers if a customer is behind on their loan payments.
Foreclosure Rules
The most severe rules of debt collection apply in the U.S., mainly due to the peculiarities of the transaction: the house is very rarely immediately becoming the property of the borrower, and after a few decades he pays the mortgage, being more of a temporary tenant. “If you miss a few payments (one is enough), the property owner can foreclose on the person.
This means that the mortgaged property becomes the property of the bank. In addition, the bank can demand additional reimbursement for its expenses. It is true that in some states, after declaring bankruptcy, the debtor is relieved of all previous debts, but in any case, the credit history will be severely ruined. The relevant information will be stored in the credit history for ten years, and within five to seven years it will be almost impossible to obtain another mortgage loan.
The other option is a short sale, which is a foreclosure sale that does not fully cover your debt to the bank. Credit history in the case of short sales also suffers, but you can get a mortgage in two or three years. This is the most popular solution among nonpayers of mortgages in the U.S. and generally a very popular way to sell a home: short sales take from 10% to 50% of home sales, depending on the state.
However, in some states, some loopholes allow debtors to stall. In particular, the state of California has a special law protecting homeowners, and unscrupulous borrowers of this law will allow a long and effective stall. But in the end, the borrower will still lose their home and become homeless: American law offers no mechanisms of protection in this regard.
Preventing foreclosure
The increase in mortgage defaults is primarily due to continued losses in the job market and falling home prices. The increase in foreclosures was 15% compared to the same period a year earlier. Home foreclosures totaled 1.19% of all U.S. homeowners.
Tips for avoiding foreclosure:
- Don’t ignore the problem.
- Contact your lender as soon as you realize you have a problem.
- Open and respond to all letters from your lender.
- Know your rights on your mortgage.
- Understand your options to prevent foreclosure.
- Contact a HUD-approved housing counselor.
- Prioritize your expenses.
- Use your assets.
- Avoid foreclosure prevention companies.
- Don’t lose your home to foreclosure fraud.
Analysts predict foreclosures in the U.S. will rise to 3.2 million cases by the end of the year. The number of foreclosures on homes in the U.S. was 11% higher than the first quarter results at 889,83,000. Compared to the same period last year, the increase was 20%. In June, the number of foreclosures totaled 336,17 thousand.
Conclusion
Christian House Buyers is the solution to all your real estate foreclosure problems. No more stressing over late payments or facing the prospect of foreclosure. If you are struggling with this issue, contact Christian House Buyers to easily sell your home in Houston for cash.
