If you’re facing jail time, you’re probably overwhelmed and in a hurry to get your affairs in order. But with the number of legal concerns on your plate, I wouldn’t be surprised if your finances have taken a back seat. It makes sense – with so much to worry about, some things will fall by the wayside. But your home shouldn’t be one of those things. Your mortgage won’t pay itself and the last thing you need is to deal with your home falling into foreclosure while you’re serving your sentence and unable to earn a paycheck.
Not only could foreclosure leave you homeless, it could also leave you with damaged credit and no money to start fresh once you’re out. You don’t want to be released from jail only to find yourself with the kind of financial scars that last longer than your time behind bars. It’s important to know what you’re up against so you can make an effective plan before you serve your sentence.
The Foreclosure Process
If you fail to make arrangements before you go and are unable to keep up with your mortgage, here’s what you can expect to happen:
Late Fees: When you miss a mortgage payment, you accrue late fees. They will usually occur between 16 and 30 days after you fail to make a payment. The late fee is usually about 4-5% of the overdue payment.
Default: If you fail to catch up on your payments and cover the late fees, you’ll be considered in default on your loan. This technically happens the moment you miss a payment but lenders usually offer a grace period of 15 days to let you get the money in. If the money doesn’t come, the lender can start the default process and file a Notice of Default with the county recorder. Then a letter comes to you within 10 days, which will alert you that you’re officially in default.
Foreclosure: Then comes foreclosure. This is a long and complicated process and it takes a minimum of 120 days in California, but when that time is up, you will lose your home. Not only does this leave you with nowhere to go when you get out, it also adds a major hit to your credit, which can make finding a new home nearly impossible. Since you’ll already be facing a number of hurdles as you work to get back on your feet, this is the last thing you need.
So you’re probably wondering what you can do. Sure, you can ignore the whole thing, go into foreclosure, lose the house, have it on your credit, do your time, and come out with no place to live. But you have another option.
Your Best Option to Avoid Foreclosure and Debt
If you’re worried about what’s going to happen to your home while you’re in jail, there’s one thing you can do that will guarantee you don’t end up facing foreclosure and damaged credit: sell your home. By selling your home, you’ll generate a reserve of cash that will be waiting for you when you exit the jailhouse doors. This gives you money to draw on in order to find new housing and also ensures that you won’t immediately end up in debt while you seek new employment – a reality that a number of ex-offenders face. It offers the financial security you’ll need to make a truly fresh start and move on with your life.
But putting your house on the market isn’t a viable option. Depending on your sentence, you probably don’t have a lot of time before you have to report to jail. And most real estate deals take time. Preparing a home for the market, finding an agent, and finding a buyer can take time. And even after you’ve found a buyer, you have to wait an additional 30 days to close because the buyer has to inspect the home, get the bank to appraise the house, and let the agents go through negotiations.
Long story short, it takes a while. Unless you call Sell Your House Direct.
Let Us Help You
Sell Your House Direct is the fair, easy, and fast way to sell your home. We service San Diego, Riverside, and Los Angeles, and we’ve helped hundreds of people over the years. We will make you a cash offer within 24 hours and we can close on the deal in under a week.
You really can remove this burden from your shoulders. No mortgage payments. No insurance. No property taxes. No ruined credit. Just money in the bank, waiting for you the day you walk out of jail. So contact us today to learn more about how we can help you.Views: 6