Are you a homeowner in Nebraska who is facing foreclosure? If so, you may be wondering what your options are and what you can do to protect your credit.
This blog post will provide an overview of the Nebraska foreclosure process. Learn how you can avoid foreclosure and what options you have if you are unable to make your mortgage payments. Read on if you’re feeling lost and don’t know how to get the help you need.
What is Foreclosure?
If a borrower defaults on their mortgage loan payments, foreclosure ends his or her title and possession of the property. In Nebraska, the foreclosure process can be judicial or nonjudicial.
How to Avoid Foreclosure
If you are having trouble paying your mortgage, there are a few options you can consider to avoid foreclosure.
Talk to Your Lender
Your lender should be contacted if you are experiencing difficulty making payments. In order to get back on track, you may need to make smaller payments over a longer period of time.
Request a Loan Modification
If you are having difficulty making your mortgage payments, a loan modification may be an option for you. Your loan terms, such as the interest rate or repayment period, might be modified.
Sell Your Home
A home sale can be a viable option if you are facing financial difficulties. A decision like this may not be easy, but it could help you avoid foreclosure.
How to Delay Foreclosure
If you’re facing foreclosure, you can do a few things to slow down or halt the process.
- Reinstate the Loan: Nebraska law gives you one month (two if the property is an agricultural property) to reinstate the loan after a notice of default has been recorded by the trustee. Deeds of trust might also give you more time to reinstate. Ensure that you understand the terms and conditions of your loan so that you know if you are entitled to more time to catch up on past-due payments or when you can reinstate. You can also ask your lender if you are allowed to reinstate your loan.
- Redeem the Property: Some states allow foreclosed borrowers to buy back their homes after the foreclosure sale. However, Nebraska law does not give borrowers a right to redemption after a nonjudicial foreclosure as a trustee’s deed is issued to the purchaser following the sale.
- File for Bankruptcy: Even though bankruptcy has its shortcomings, it can help prevent foreclosure. After a bankruptcy filing, creditors cannot foreclose or collect debts. Learn more about your options by contacting a bankruptcy lawyer.
The Foreclosure Process in Nebraska
Foreclosures are complicated, so it is important to understand how they work. In Nebraska, the foreclosure process is judicial and can take 90-120 days to complete.
Judicial Foreclosure
In a judicial foreclosure, the lender files a lawsuit seeking a court order allowing the foreclosure sale to proceed. In the absence of a written response, the lender will automatically win the case. If you decide to defend the foreclosure lawsuit, the court will evaluate the evidence and determine the winner. In the event that the lender wins, the judge will enter a judgment and order the sale of your property at auction.
Nonjudicial Foreclosure
When a lender decides to foreclose nonjudicially, they must follow the state’s out-of-court procedures. Lenders can sell a home at a foreclosure sale once they have completed the required steps. Generally, lenders choose the nonjudicial process because it is faster and cheaper than going to court.
The Consequences of Foreclosure
Homeowners and their communities can suffer severe consequences from foreclosure. The foreclosure process can result in homeowners losing their homes and damaging their credit scores. Consequently, obtaining a mortgage or credit line may be difficult. Furthermore, foreclosure can be an emotionally draining process.
Communities can also be negatively affected by foreclosure. In foreclosed neighborhoods, property values can drop, resulting in decreased tax revenues and an increase in crime.
Resources for Homeowners Facing Foreclosure in Nebraska
If you are facing foreclosure in Nebraska, several resources are available to you. The U.S. Department of Housing and Urban Development provides counseling and assistance to homeowners to prevent foreclosures. You can also contact the Nebraska Department of Banking & Finance to get the guidance and resources you need.
Avoid Foreclosure by Selling Your Home for Cash in Nebraska
If you’re facing foreclosure, selling your home for cash can help you regain your peace of mind and move on. At Favor Home Solutions, we know you are going through a difficult time, so you can count on us to guide you through the entire process and provide you with a fair cash offer for your home.
We will take care of:
- Closing on the date of your choice
- Handling all the paperwork
- Paying all the closing costs
- And much more!
If you’re interested in learning more about getting a free, no-obligation offer for your home, contact us today!
