Tips For Homeowners in Pre-Forclosure

Tips for Homeowners
in Pre-forclosure

Have you been struggling to keep up with recent mortgage payments? Has your bank threatened to send a notice of default? Maybe your lender already started the foreclosure process. If you relate to any of these situations, the article below may be able to help you.

Talk to Your Lender About Loan Modification Options

If you are unable to make your mortgage payments, your lender may be willing to modify the terms of your loan to make your payments more affordable. You will have to apply for a loan modification, and your lender will need to see proof of your income, debts, and assets to make sure you qualify.

Depending on your situation, you lender has a few different options:

Extending the repayment terms
Reducing the interest rate
Adding missed payments onto the end of your mortgage
Converting an adjustable-rate mortgage into a fixed rate mortgage

Conduct a Short Sale or Pursue a Deed in Lieu

If you can’t afford to continue to make your mortgage payments even with a loan modification, it may be best to consider a short sale or deed in lieu.

With a short sale, your lender agrees to sell a house to another party for less than you owe on the mortgage. You will walk away from the deal without a dollar, however, the lender will forgive the remaining balance of your mortgage.

A deed in lieu is an agreement between you and your lender to transfer ownership of the property. You will sign a document that transfers the deed to your house back to the lender, and the lender will release you from liability and the remaining mortgage debt.

Sell Your House To Us For Cash

If you are interested in pursing a cash sale, we can close on your house in as little as seven days. If you have already received a notice of default, we can work with your lender to settle your remaining debt and stop the foreclosure process.

Here is how our process works:

Give us a call or a text, or fill out our contact form. We will contact you during normal business hours.
Schedule a walk through. Once we have the information we will conduct a walkthrough to determine the fair market value of your home.
Receive our no obligation offer.
If you agree to our offer, we can close when you are ready.

we buy houses in under any condition, in any situation. Even if the house needed extensive repairs, we are ready to give you cash for it.

Foreclosure is a tedious and expensive process for lenders, and for that reason institutions prefer to avoid it if possible.

File for Bankruptcy

If you are severely struggling to repay your mortgage and other debts, filing for Chapter 7 or Chapter 13 bankruptcy may be your best option. Filing for bankruptcy will negatively affect your credit, however it will bring the foreclosure to a standstill.

When you file, an automatic stay immediately goes into effect. This court-issued injunction prohibits your lender from taking any further collection action against you until the court discharges your bankruptcy case.