As the economy picks up and the housing market starts to rebound, foreclosures are on the rise in the Nashville area. In fact, in the past three years, foreclosures in the area have increased by 70 percent!
Foreclosure is a stressful experience for anyone, but it’s especially difficult for young families who are still trying to establish a home base.
We know a lot of people who think they have no money or that they have no hope of saving their homes from being foreclosed on. Well, guess what? That is NOT true. We live in a very special city, and in this post, Property Friends will tell you how to avoid foreclosure in Nashville and keep your home.
What is Foreclosure?
A foreclosure happens when you stop making payments on your mortgage, and the lender or the bank takes back control of the property.
A foreclosure is when a bank or another entity repossesses your home, usually because you haven’t made a payment on your loan. Foreclosures happen all the time, even when homeowners feel they aren’t behind on their payments.
While the foreclosure process is often thought of as a real estate-related process, the truth is it’s much more than that.
Why is Nashville Experiencing So Many Foreclosures?
One of the fastest-growing cities in the United States, Nashville experienced a major economic downturn in 2008 and hasn’t fully recovered, and a foreclosure is a huge problem here.
Many of the city’s neighborhoods have been hit especially hard by the foreclosure crisis, and those who have been impacted continue to struggle today. Nashville is the largest metropolitan area in Tennessee, with 1.2 million residents.
At this moment, over 20,000 homes are being foreclosed on. These people are losing their homes, possessions, and life savings. They’re being forced to give up their home because of something beyond their control.
Many factors contribute to this massive problem. Such as:
- Those who bought homes during the housing boom were like getting mortgage payments with no money down.
- Home prices skyrocketed.
- Banks offered low rates, and even though homeownership was just one of many financial decisions people made, it seemed like the perfect time to jump into the market.
- Many of Nashville’s major players are struggling with subprime loan issues.
There are signs that the current economic crisis will continue to plague Nashville and its residents for the foreseeable future.
How Can I Avoid Foreclosure in Nashville?
Our expert team found the following three ways to avoid foreclosure in Nashville:
- Apply for Loan Modification
- Apply for Bankruptcy
- Sell Your Home
1. Apply for Loan Modification
The Housing and Urban Development (HUD) and the federal government have created several major mortgage change programs.
Loan changes are permanent changes to one or more loan terms to reduce mortgage payments and avoid foreclosures. Possible changes include lower interest rates, longer loan terms, or lower loan amounts.
Taking advantage of loan change opportunities requires negotiations between you and the lender, and we are here to help. Loan changes are a powerful tool for improving homes’ affordability and guiding you through the process.
2. Apply for Bankruptcy
If you file bankruptcy after our consultancy, the postponement will happen immediately. This is to force the creditor’s actions against you to stop. This must be your first step in bankruptcy proceedings.
Attempts at foreclosure in your home must be blocked. This is true whether you have just been threatened with the first foreclosure or the bank is literally waiting to keep your home away from you.
We guide you to make the most of your automatic stay and that the threatened foreclosure process will stop as soon as possible.
3. Sell Your Home
It sounds crazy, but it is. You can get a fresh start, step down to something you can afford, or rent somewhere. You can pull the house away from the bottom because balance cites is the best way to stop foreclosure.
It will not be honored for you to get a black mark in front of your name. It robs you of your home and prevents the legal system from engaging you and your credit.
This is a third and final idea of how to stop foreclosure. Selling your property in Nashville can be difficult but we buy houses with fair cash offers and cash-on-hand payment mode.
Property Friends can help you sell your house as-is in Tennessee, Nashville, Clarksville, Knoxville, Jackson, Greenwood, Chattanooga, and all other greater TN areas. If you want a non-obliged evaluation of your house call us at (629) 206-4166 or shoot us an email at firstname.lastname@example.org
In conclusion, you can’t afford to wait around until everything goes back to normal. Take control of your finances and get out of debt as soon as possible. Don’t let other people hold you back. Stop the negative cycle and start building a new financial future.
Try to cut costs wherever you can, such as by reducing travel costs. But keep in mind that you’ll still need to live, so don’t expect to make major savings unless you also reduce your overall living expenses.
I’m the founder and managing partner of Olympus Development Group a TN-based Real Estate Development and Investment firm, and a Financial Coach with clients in Los Angeles, New York City, and Nashville. As a serial financial entrepreneur, I excel at deal structurings, acquisitions, and business development with a strict focus on cost control in all aspects of a transaction – acquisition, management, operating costs, and disposition.