When you’re facing foreclosure, you have limited options on the table. Some of these options include remortgaging your home, selling the house or waiting for your house to be foreclosed.
Choosing which route to follow can be challenging, and homeowners often feel lost and torn in between remortgaging and selling their property to avoid foreclosure.
So, which is the better option? Here at Chicagoland Home Buyer, we make it possible for people to sell house cash Chicago and allow residents to avoid foreclosure.
That’s why we decided to help highlight what remortgaging is as well as the pros and cons plus the benefits of choosing to sell a house fast for cash to avoid foreclosure.
What Is Remortgaging?
When you’re buying your first house, you either purchase in cash or finance the purchase with a mortgage. When you finance the purchase of your home with a mortgage, you are required to pay the bank plus the interest.
However, if you fail to make these payments, then the bank will attempt to recover the balance by foreclosing your home.
This is where remortgaging comes in – remortgaging involves a homeowner taking out a new mortgage to repay the existing one.
When you take a remortgage, you don’t have to move house you simply transfer your debt to another mortgage company with your home as security.
The Pros & Cons Of Remortgaging To Avoid Foreclosure
– Remortgaging presents homeowners with an opportunity to switch to a more favorable mortgage product. A mortgage could be more attractive due to reduced interest rates.
– A homeowner can leverage the home’s equity to get more money.
– The chance for homeowners to consolidate their debts.
– When you remortgage your home, the debt doesn’t go away or reduce. Instead, you only stretch your mortgage and ultimately increase the total cost.
– When you use your property as security to remortgage, then it can still be foreclosed in the future.
– There are usually hefty fees that come with remortgaging such as payment for a reevaluation of your property.
– When your facing foreclosure, remortgaging might not save you since the remortgaging process can take up to a few weeks to complete.
– Some mortgage lenders might charge an early redemption fee.
Selling Your House To Avoid Foreclosure
With mortgage rates in the greater Chicago area on the rise, it makes sense for homeowners to look for a better way to avoid foreclosure – sell house cash Chicago.
When you sell your house to Chicagoland Home Buyer, we pay you in cash and take over your mortgage. Foreclosure isn’t good for your credit score and remortgaging postpones the problem.
Here at Chicagoland Home Buyer, we take pride in allowing homeowners to realize their mortgage-free dream. Our process is fast, and you can sell within ten days.
Therefore, even if you are facing imminent foreclosure, you can still sell and avoid foreclosure.
Selling your house for cash in an excellent option to pay your debts, and give you a fresh start. Do you want to learn more about remortgaging and selling your house for cash? Give us a call.