How to Stop Foreclosure in Kalamazoo, Michigan

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The sinking sensation when a foreclosure notice comes in the mail is high on the list of worst things that a homeowner can feel. It’s overwhelming, even though most Michigan homeowners facing foreclosure have known for some time that it was coming. Stopping foreclosure in Kalamazoo is possible. It takes bravery and a willingness to make hard decisions.

Stepping beyond your fear of losing your home

Whatever circumstances have pushed you to the precipice of home foreclosure don’t stop because you’re dealing with this new problem. Whether it’s a divorce, job loss, financial strain, or even the death of a loved one, the problems that led you to potentially losing your home are still there. 

People in this situation can have one of many different responses. At first, they might want to put their head in the sand and just ignore it. That’s the hands down worst thing you can do. There are so many options for Michigan homeowners in danger of losing their home. Kalamazoo homeowners do well to investigate the possibilities and make the smart decision. 

Great real estate deals in Kalamazoo, MI can eventually turn sour because of market price changes. Though there was a federal moratorium on foreclosure, that’s no longer the case. Tax foreclosed homes can fall into the sheriff sales category. Property listed for sale in Kalamazoo, MI often becomes a great real estate investment when buyers don’t have to pay full market price.

Yes, it’s scary to face losing your home. Getting over the fear will help you survive! Start by knowing your options. 

Six ways to stop foreclosure in Kalamazoo

There are so, so many ways to resolve a foreclosure. Some of them are easy and some of them are hugely challenging. One of them is a good fit for most homeowners facing foreclosure. 

1 – Pay in full

homeowner paying off foreclosure

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The most obvious option is to pay off the total amount owed to the mortgage company that’s listed on the foreclosure paperwork. This includes all legal fees and any penalties that might have accrued. This will resolve the mortgage delinquency. 

When a Kalamazoo homeowner pays off their delinquent mortgage in full, the mortgage payment stays the same. 

The downside here is that this option is out of reach for most homeowners in Michigan. If you had a large amount of money to pay off the delinquent mortgage, then you’d most likely not be in this situation. However, there are situations where this is possible. A tax return, an inheritance, a bonus on a new job, a personal loan, or a family loan are all possibilities. Selling off other property like a car or personal items could also raise the necessary funds to pay down the past due amount. 

2 – Negotiated catch-up

This happens when you and the mortgage company work together to determine repayment terms. It’s one step up from the pay in full approach, in large part because this usually requires large payments in a short amount of time. Think six months or a year. 

The terms of negotiated catch-up are generally rigid, so it’s easy to fall right back into foreclosure. This resolution often puts a lot of pressure on homeowners, but it doesn’t change the overall mortgage payment in the end. A forbearance can also help to put a short bridge on the loan and prevent Michigan foreclosure. 

It’s a great option for Michigan homeowners who are slightly behind but have new income on board. If there’s not a new stream of income or some other mid-term solution, this can put a huge strain on the budget and cause additional stress.

Negotiating a pre-foreclosure deal in the near future can save the property from foreclosure eviction. Those who search for solutions to prevent the sheriff sale near Kalamazoo can often find those solutions right with the bank that they borrowed the money from.

3 – Loan modification

More intense than negotiated catch-up, loan modification offers benefits and drawbacks. 

The delinquent payments are usually added onto the back of the loan, relieving the pressure in the short term. It does extend the life of the loan, but it can be a blessing in the short term. There can be fees and increased interest with this option, so there are costs associated with loan modification.

This step can prevent foreclosure, but it will have serious consequences on the loan. Mortgage lenders are reticent to take this step if you have poor credit history. It’s totally up to the bank whether they’re willing to do a modification.

4 – Filing Chapter 13

foreclosure properties saved through bankruptcy

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Bankruptcy sounds scary, but it’s not the horrible outcome that many homeowners in Kalamazoo fear that it is. Chapter 13 bankruptcy is really a method of debt consolidation. 

The great part about bankruptcy is that it puts the mortgage first, and that can keep you in your home. It’s an effective way to restructure debt and get out of foreclosure in Michigan. Puting off the date of the debt until later through Chapter 13 can reduce the rate of the debt too. 

To be clear – filing Chapter 13 halts the foreclosure process. 

Debts like personal loans, medical debt, car loans, and credit cards are all unsecured debt. The home is a secured debt. This is why the home loan is given priority in bankruptcy. In addition, interest rates on all of those unsecured debts stop accruing during bankruptcy. Delinquent mortgage payments also stop accruing interest. Late fees stop and any other fees also stop stacking up. 

Bankruptcy stays on your credit report for seven years and will impede your ability to take loans in the future. It’s a serious step, but it can be preferable if you want to stay in your house in Michigan.

5 – Deed in Lieu

A deed in lieu of foreclosure is when you give the home back to the bank. It stops foreclosure, but the homeowner loses the home. It’s basically a trade that saves you from formal foreclosure. 

The problem here is of course that you don’t get to stay in your home in Kalamazoo if you go with this method. Taxes also don’t go anywhere. You’ll still owe any taxes on the home and those cannot be forgiven. 

It’s a quick move and one that works for many families, but it’s a desperate decision because it leaves families trying to find new accommodations. Kalamazoo, MI foreclosure homes are a drain on everyone’s resources. No one wants to go to the point of sheriff’s sale. That process is long and expensive for mortgage holders.

Foreclosure evictions are the last step in the process of getting foreclosure homes in the hands of the bank. It can take months to go through all of that, and the bank would rather take possession of the home than have to go through all of that. A deed in lieu can be a win-win for everyone.

6 – Short Sale

property listed for short sale

Finally, we come to the short sale. All this means is that the homeowner in Michigan agrees to sell to an outside buyer, who pays off the mortgage. Like the deed in lieu, the homeowner doesn’t get to stay in the home with this method. 

Depending on market conditions, there might be less competition for homes near Kalamazoo. Homeowners who act fast can push back the auction dates and pull their home out of pre foreclosure. In today’s real estate market, potential buyers have instant access to information about homes through email alerts. They also used popular searches, like “Kalamazoo foreclosure listings” and “available foreclosure properties in Kalamazoo, MI” to find homes in your area.

Potential buyers can view super saving listings to find available pre foreclosure property in Kalamazoo County to find single family homes. They could also find your home through shadow inventory listings, which are property types that haven’t yet been put on the market. This is why cash homebuyer can find cheap homes in pre-foreclosure to purchase as short sales.

The cash sale of a home can happen fast, which is exactly what the mortgage company wants to happen. The mortgage holder gets the money fast, so they can feel good about the process. The mortgage company might even waive some of the fees and give the homeowner some extra time to close the deal if there’s a cash buyer in place. 

Halting foreclosure is simple

Putting a stop to foreclosure can save both your credit score and your dignity. These are hard decisions to make, but there are lots of straightforward options. The estimated market value of single value homes in Kalamazoo County is definitely higher than what the bank will get through sheriff sales, and that’s great news for homeowners.

Homeowners in Kalamazoo, MI who are facing pre-foreclosure need to step back and look at all of the possibilities. Even if the eventual outcome is losing your home, it’s still preferable to bank repossession and a sheriff sale. 

Read This Before Selling Your House to a Cash Home Buyer in Kalamazoo, Michigan

Getting a fast turnaround on a home is important, especially in today’s real estate market. Before you sell your house in Kalamazoo, you’ll want to understand the top factors affecting the real estate market in western Michigan.

Cash home buyers in the Kalamazoo area are ready to pay a fair price to homeowners for both properties that are in great condition and for property that needs repairs. If you need to sell your MI house, you may not realize that a fair all-cash offer is even an option.

Traditional real estate sales or selling to an investment firm have long been a comfort zone for people who are selling their homes. With the rise of the no-obligation cash offer, it’s now possible for homeowners to unload burdensome houses fast.

Though that sounds like a great deal for helping homeowners, learning about the whole process before you put your Kalamazoo property up for sale is the best way to go.

Prepare your home for sale

Normal wear and tear on a home from living in it day in and day out leave a house in a state that’s not attractive to potential homebuyers. Though it can seem like this is cosmetic, and to a certain extent it is, that doesn’t make it superficial.

Cleaning and decluttering your home before the sale is the first step. Start by packing away anything and everything that you can, from household items to personal belongings. The reason for this is to allow prospective buyers to envision themselves in the home and to let them see what the space really looks like. You can’t do those things if someone else’s stuff is everywhere. 

Hiring a professional cleaner to do a deep clean of your house is a worthy expense here. Once you’ve packed things away, let them do the heavy lifting to prepare your home for sale. This can extend to having the carpets cleaned and the landscaping freshened.

Always come to this with an eye for what you’d like to see when you flip through real estate listings. Your house doesn’t have to look like a design magazine, but it does have to look neat. Again, the goal is to let people see the architecture of the home and to imagine themselves living there.   

A little work goes a long way

Even if your goal is selling your home to a cash buyer, you’ll be able to get a better price for your house when you give it a bit of a facelift before pursuing sale options. 

This can look like painting the front door, making visible home repairs, and decluttering. A good tip here is to get a second set of eyes to look at your house. Invite a trusted friend over to walk through your home with you and ask them what they’d notice if they were a potential buyer. An outside perspective can be really helpful here. 

Don’t put in a ton of work or spend a lot of time doing this though. Unless your agent has told you that something has to be addressed before putting the house on the market, you should leave it alone. No potential buyer is expecting your house to be perfect. All homes in Kalamazoo, Michigan have some problems, especially given the cold winter weather and the intensity of the cold in the winters here. 

Put your focus on the pieces that are most visible. Individual homebuyers are driven by the emotions of imagining their family living there. There’s a reason people say that they “fall in love” with a house. Give them something to fall in love with! Think of it like getting ready for a date and dress up your home appropriately. Even though we buy houses companies, cash buyers, and real estate investors are less emotionally invested in the homebuying process, they still want to see the house in great shape at first glance.

You have options for selling your home in Kalamazoo

Don’t let anyone pressure you into selling your house. You have tons of options. In today’s real estate climate, you can be confident that your home will sell quickly thanks to current trends in the Michigan real estate market. All you’ll need to get started is the property address that you’re interested in selling either in Kalamazoo, MI or the surrounding areas.

Here are three ways to sell your Kalamazoo house:

– FSBO: Sell it yourself

– Sell your home to an investor

– Sell your home through a real estate agent

Sometimes homeowners like to retain the most control over how it all goes. If that’s you then you’ll want to sell your home yourself through the for sale by owner or FSBO process. Do your research and consider the amount of work that you’ll have to do if that’s your choice. Also know that it can be an extremely satisfying way to go.

Hands down, the fastest way to sell your home in Kalamazoo is to do it through a real estate investor like a we buy houses company. The reason is that these companies specialize in quick turnover and are experienced in home sales. You have a distinct place to start and someone to follow you through all the steps to selling your house. 

The traditional route of selling your house in Kalamazoo through a local real estate company is a viable option. There’s a reason people do it this way! Working with an agent will give you the most support through your home sale. A professional agent will be able to give you advice and guidance all along the way. In exchange, they’ll take a hefty commission.

With this process, you’ll go through the entire process with all the paperwork, the open houses, closing costs, and the fees associated with selling a burdensome property. In addition, there may be repairs needed to sell your Kalamazoo house. Potential home buyers will have to go through a lot of paperwork for validation purposes as well. All of that might be well worth it to you, depending on your personality and your situation.

Understand the Western Michigan market

Kalamazoo River in Michigan
Image credit: Yi Liu via Unsplash

Kalamazoo is a college town, and the students at Western Michigan University and Kalamazoo College weight the real estate market towards rentals in the areas close to those universities. In addition, recent research points to Kalamazoo as a center for lifestyle renters. Higher-income Millenials are increasingly interested in renting instead of buying in this area. This pushes the average homebuyer in this area towards GenX.

If your home is near the Kalamazoo River or one of the lakes in town, then you’re well-positioned to attract a family or potentially higher-income buyer. Homes in Portage and Oshtemo are also attractive to buyers who are interested in getting a little further afield of the city. 

When you’re putting your home on the market, you’ll want to know as much as you can about what competing home in Kalamazoo county are going for. You’re not just competing with other houses in your immediate area, but with homes across the county. Making sense of the total reality of home sales all over the area of southern Michigan can help you to have the right expectations. 

Every situation is different

Though selling your home is a common experience, keep in mind that every situation is unique. You could be facing foreclosure, and if you are you should know that Kalamazoo cash home buyers have the potential to help you turn over your house fast.

Given its location next to the beautiful Kalamazoo River, the cultural and arts opportunities in the city, and the fact that the Kalamazoo area is a top Michigan city to raise a family in, it’s no wonder that houses in Kalamazoo are selling fast. Other nearby cities like East Grand Rapids, Sturgis, and Coldwater are also growing.

Unwanted property can take many forms, and burdensome houses or don’t require creative real estate solutions. If you need to sell your house fast and get out from under mortgage payments, to take care of back taxes, or untangle from bank financing, all you need to do is connect with a trusted cash buyer to get the fair offer you deserve as well as to get the money fast.

Homeowners in all kinds of situations can work with problem solvers who buy houses and are experienced with selling houses in Kalamazoo. Before you go to a listing agent to sell your house, you should absolutely explore all of your options.