It’s not rare to hear of homeowners across America struggling to meet their monthly mortgage payments. With millions of homes across the country going into foreclosure, both buyers and mortgage holders need to understand the process of a pre-foreclosed home.
Pre-forclosure is the beginning process of a lending institution repossessing property from the current borrower. Bank and mortgage lenders will typically provide the homeowner three months to catch up. If the defaulting borrower fails to make their payments the lender will then file a default notice on the property. This will inform the homeowner that legal action will take place if they do not pay their dues. If they prosper in paying their debt, then the property is no longer in pre-foreclosure.
Pre-foreclosure Options For Borrowers
Pay Off Your Missed Payments
Start with catching up on all your missed payments. If you’re able to take care of this and also cover any penalties or late fees of any sort, while continuing to meet regular payments throughout the remainder of the loan, most lenders will put an end to the preforeclosure process.
The option to sell your home is available during preforeclosure. Most lenders accept short sales if you’re in preforeclosure. A short sale is when you’re unable to sell your home for more than the remainder of your loan. Short sales tend to be accepted by banks because it saves them time and the cost it takes to foreclose on a property. This option also allows you to have a bit more control over the preforeclosure process. The downside with this option is that it’ll require you to move out of your property and plan for future arrangments.
A third option is a loan modification. This can include refinancing your property, but will eventually mean going to your lender to get a rewritten loan. This option could extend the life of your loan, but by spacing out the payments over a course of more time, it will give you more affordable payments.
Ways We Can Help
- We can potentially help with a short sale – Submit your info on this website so we can evaluate your situation to see if we can help.
- We can buy your house – We buy houses in Syracuse and would love to make you an all-cash offer on your house too. Fill out the form here to get started!
- We can answer your questions – We can provide free guidance with the questions you ask. We can also provide you with resources so you can make a well-educated decision.