With millions of homes across the country going into foreclosure, it’s important for both buyers and mortgage holders to understand the process.
So what is a pre-foreclosure in Houston anyway?
Many homeowners across America and Houston are facing difficulties making their monthly mortgage payments.
When a homeowner misses 3-6 months of mortgage payments, the lending institution will issue a warning, notifying the homeowner to pay or lose their home. This period is known as “pre-foreclosure.”
*** rewrite *** When a homeowner fails to make mortgage payments for 3 to 6 months, the bank will give a notice, telling the homeowner to settle their debt or face losing their property. This stage is referred to 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.
If a homeowner fails to make the necessary payments, the bank will foreclose on the home, assuming ownership, and evict the homeowner. Thankfully, during this stage of the foreclosure process, a mortgage holder has the opportunity to take advantage of several options to prevent losing 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 Houston 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 Houston like us at Right Path Property Solutions, 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 Houston TX 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. Bankruptcy will remain on your credit report for years, and can cause significant damage.
Lenders are very much aware of the widespread financial troubles across the country and they’re willing to work with borrowers a lot of the time.
If you’re honest and communicate with your lender, you’ll often find that there are options that will allow you to remain in your home, or at least salvage your credit rating.
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, so be very dutiful if you’ve received 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.
***rewrite***If you’re falling behind on your mortgage payments, it’s likely you’ll get a “notice of default” from your mortgage company.
This document will indicate that you haven’t made your mortgage payments for the past 90 to 180 days. It’s crucial not to lose hope.
There are options available to you that could either delay or even stop the foreclosure of your home:
If your mortgage balance is “below water,” meaning you owe more than your house is worth, you might be able to refinance your mortgage to get lower monthly payments. Reach out to your local Houston mortgage broker… or get in touch with us, and we can help you find a trustworthy one.
sell your home to a real estate investor quickly, often within a week or two, for cash, which could help you catch up on your back mortgage payments (or we might be able to negotiate with the lender to forgive some or all of your back payments). We can buy your Houston TX area home, making the process less stressful for you in finding a buyer.
You might also consider asking the bank to allow a short sale. In a short sale, you sell your home for less than it’s worth, and the bank takes the loss as a tax write-off. However, in some short sales, you might still owe the bank the difference if the sale doesn’t cover the full loan amount.
Declaring bankruptcy could give you some breathing room to catch up on your debt. However, bankruptcy will stay on your credit report for several years and can severely damage your credit score.
Banks are aware of the widespread financial difficulties many people are facing and are often willing to work with borrowers.
If you’re open and communicate with your lender, you’ll likely find solutions that allow you to stay in your home or at the very least, protect your credit score.
A foreclosure can significantly lower your credit score by 200 to 400 points and could prevent you from getting any loans for up to 5 to 7 years, so it’s crucial to act promptly if you’ve received a Notice of Default from your lender.
However, if you’re unable to reach an agreement with your lender directly… connect with us. We might be able to assist you.
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 help.
- We can buy your Houston area house – We buy houses in Houston 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, there’s absolutely no pressure, no obligation… just free guidance without a catch.
If you’re in the pre-foreclosure stage… 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 contact us if you’d like to see what we can buy your house for or to tap into our free foreclosure foreclosure resources.
***rewrite***We might be able to assist with a short sale – Please provide your details on our website so we can assess your circumstances to determine if we can offer our support.
We buy houses in Houston – We specialize in buying properties in Houston and are eager to provide you with a cash offer for your property. fill out the form here to get started.
Should you have any questions, we’re here to offer you FREE advice and access to resources, enabling you to make an informed choice. This service is completely free, with no pressure, no commitment… just complimentary advice without any strings attached.
Even if you’re facing foreclosure, there’s still an opportunity to resolve this issue.
Reach out to your lender to discuss potential solutions… or get in touch with us to explore our offer for your property or to access our complimentary foreclosure foreclosure resources.