As numerous homes all over the country are at risk of foreclosure, it’s crucial for both people looking to buy a home and those who hold mortgages to grasp how the process works.
So tell me what is a pre-foreclosure in Paducah and Surrounding Areas anyway?
Many homeowners across America and Paducah and Surrounding Areas are facing difficulties making their monthly mortgage payments.
When a homeowner misses anywhere from 3-6 months of mortgage payments, the lending institution will issue a warning, notifying the homeowner to pay up or lose their home. This period is known as “pre-foreclosure.”
Banks and mortgage lenders typically provide three months for the homeowner to become current. Of course, this number can vary by bank and situation sometimes.
When a homeowner can’t make the required payments, the bank may take back the home, become the owner, and ask the homeowner to leave. Luckily, at this point in the foreclosure process, the mortgage holder can explore various choices to try to avoid losing their home.
Here Are Some Pre-foreclosure Options for Borrowers
If you’ve fallen behind on your mortgage payments, it’s probable that your mortgage lender will send you a “notice of default.” This is normal procedure for lenders.
This document will state that you have not made your agreed upon mortgage payments for the last 90-180 days. BUT It’s important not to panic.
You have multiple options that can delay or even prevent you from losing your home:
- If your mortgage is “above water,” (meaning you have equity in your house and it’s worth more than what you paid for it or are indebted to a lender for it) you may be able to refinance your mortgage, and you and the lender could come up with a lower monthly payment. If you find yourself in this position then check with your local Paducah and Surrounding Areas mortgage broker… or even better you could 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 Paducah and Surrounding Areas like us here at Clayton Buys Houses, 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 Paducah and Surrounding Areas KY area home quickly, often in just a week or two, we will also pay in cash, and this can take 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 either take the loss as a tax write-off or 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. Either way you’ll have to obtain the lender’s approval.
- You may be able to declare bankruptcy, which can buy you some time to pay your debt. Bankruptcy will remain on your credit report for years and can cause significant damage and you still may not keep your home. The only way you can keep your homes is if it falls under a state exemption. A bankruptcy trustee will assume control of your estate. Only use this avenue as a last resort.
Lenders understand that many people are facing financial difficulties all over the country, and they are often open to collaborating with borrowers. Lenders don’t typically want to become homeowners themselves; instead, they prefer to have someone living in the home rather than it being vacant due to looters and vandalism. Which will cause more trouble in the home than they want to deal with.
If you’re honest and communicate any hardships with your lender, you’ll often find that there are options that will allow you to remain in your home, sell your home quickly, or at least salvage your credit rating. And most lenders are more than willing to help you.
If you find yourself in forecolsure you must remember that a foreclosure can often negatively affect your credit score by 200-400 points and can prevent you from obtaining a loan of any sort for 5-7 years. If you get a Notice of Default from your lender, make sure to be responsible and do what they ask you to do. But if you’re not able to find a solution with your lender by working directly with them… connect with us. We may be able to help.
There Are A Few Ways We Can Help If You’re In Pre-Foreclosure
- 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 be of help.
- We can buy your Paducah and Surrounding Areas area house – We buy houses in Paducah and Surrounding Areas 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 costs you nothing and there’s absolutely no pressure, no obligation… just free guidance without a catch.
If you’re in the pre-foreclosure stage or seem to be heading in that direction… you’ve still got time to fix this situation.
Just connect with your bank to see if they’re willing to work with you… or you can contact us if you’d like to see what we can buy your house for or just tap into our free foreclosure resource.