Considering the vast number of properties across the country currently undergoing foreclosure proceedings, it becomes imperative for both potential buyers and mortgage holders to fully comprehend the complexities inherent in the foreclosure process.
So what is a pre-foreclosure in Front Royal anyway?
Many homeowners across America and Front Royal are facing difficulties making their monthly mortgage payments.
When a homeowner falls behind on mortgage payments for a duration spanning 3-6 months, the lending institution will issue a formal notice, alerting the homeowner of the imminent risk of foreclosure if the payments are not promptly rectified. This phase is commonly referred to as “pre-foreclosure.”
Banks and mortgage lenders typically afford homeowners a grace period of three months to rectify their delinquency and bring their payments up to date. However, it’s important to note that this timeframe can vary depending on the specific policies of the bank and the unique circumstances of each situation.
In the event that a homeowner defaults on their payments, the bank will initiate foreclosure proceedings, ultimately repossessing the property and displacing the homeowner. Fortunately, at this juncture of the foreclosure process, mortgage holders have the chance to explore various avenues to avert the loss of their home.
Pre-foreclosure Options for Borrowers
If you’re behind on mortgage payments, you’re likely to receive a “notice of default” from your mortgage lender.
This document will state that you have not made mortgage payments for the last 90-180 days. It’s important not to panic.
You have options that can delay or even prevent losing your home:
- If your mortgage is “above water,” (meaning you have equity in your house) you may be able to refinance your mortgage, receiving lower monthly payments. Check with your local Front Royal mortgage broker… or contact us and we can connect you with a reputable one.
- You may be able to quickly sell your home to a real estate investor that’s reputable in Front Royal like us at Five15 Properties, using the cash acquired to pay the months of back-payments owed (or we *may* be able to work out something with the lender that relieves all or part of your back payments.We can buy your Front Royal VA area home quickly, often in just a week or two, will pay in cash, and takes the stress out of trying to find a buyer.
- You can contact the bank and ask them to permit a short sale. In a short sale, you’ll sell your home for less than it’s worth, and the bank will take the loss as a tax write-off. In some short sales you may still be required to pay the difference to the bank if the house doesn’t sell for what is owed on the loan.
- You may be able to declare bankruptcy, which can buy you time to pay your debt. The repercussions of bankruptcy endure on your credit report for an extended period, potentially causing considerable harm.
Lenders are keenly aware of the widespread financial challenges pervasive across the nation, and they often demonstrate a readiness to engage in collaborative efforts with borrowers.
By maintaining honesty and fostering open communication with your lender, you will often discover viable options that enable you to retain possession of your home, or at the very least mitigate the impact on your credit rating.
Foreclosure proceedings can substantially diminish your credit score by 200-400 points and may hinder your ability to secure any form of loan for a duration spanning 5-7 years. Consequently, it is imperative to exercise utmost diligence upon receiving a Notice of Default from your lender.
But if you’re not able to find a solution with your lender working directly with them… connect with us. We may be able to help.
Ways We Can Help If You’re In Pre-Foreclosure
- We can potentially help with a short sale – Kindly provide your information through this website to enable us to assess your circumstances and determine if our assistance can be of benefit to you.
- We can buy your Front Royal area house – We buy houses in Front Royal and would love to make you an all-cash offer on your house too. Just fill out the form here to get started >>
- You can ask us questions and we can provide you FREE guidance and resources so you can make a well educated decision. This process carries no financial burden for you, exerts no undue pressure, and imposes no obligatory commitments. It’s purely complimentary guidance offered without any concealed motives or conditions attached.
If you find yourself in the pre-foreclosure phase, there is still an opportunity to rectify the situation.
Initiate communication with your bank to explore the possibility of collaborating on a solution. Alternatively, reach out to us if you wish to ascertain the potential purchase value of your house or to access our complimentary foreclosure resources.