As the number of foreclosed homes in the country continues to rise, it becomes increasingly crucial for both potential buyers and current mortgage holders to have a comprehensive understanding of the foreclosure process.
So what is a pre-foreclosure in Orlando City anyway?
Many homeowners across America and Orlando City 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.” and also what is a 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.
In case a homeowner is unable to make the required mortgage payments, the bank has the right to foreclose on the home, which means that they will take ownership of the property and proceed to evict the homeowner. However, there are various options available to mortgage holders during this stage of the foreclosure process that can help them avoid losing their home. These options may include negotiating with the bank to modify the loan terms or exploring government-sponsored programs that provide assistance to homeowners facing financial difficulties.
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 Orlando City 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 Orlando City like us at 3 Step Home Sale, 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 Orlando City, FL 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. “what is a pre-foreclosure“
In the current economic scenario, financial difficulties have become a common occurrence for many individuals across the country. However, lenders are well aware of such situations and are often willing to help borrowers in need. To ensure you can keep your home and maintain a good credit rating, it’s important to be truthful and communicate openly with your lender. By doing so, you may discover that there are a range of options available to you.
Understanding the severity and long-term consequences of foreclosure is vital. In most cases, a foreclosure can adversely affect your credit score by a significant margin, usually between 200-400 points. It can also prevent you from obtaining any loan for a period of 5-7 years. Therefore, if you have received a Notice of Default from your lender, it is crucial to act promptly and take the necessary steps to prevent foreclosure.
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 – Submit your info on this website so we can evaluate your situation to see if we can help.
- We can buy your Orlando City area house – We buy houses in Orlando City 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 find yourself in the pre-foreclosure stage, it means that you’re in danger of losing your home to foreclosure. However, this doesn’t mean that all hope is lost. You still have time to take action and try to fix this situation.
One option is to reach out to your bank and see if they’re willing to work with you. They may be able to offer you a loan modification or some other form of assistance that can help you get back on track with your mortgage payments.
If you’d like, you have the option of reaching out to us to inquire about what price we might be able to offer you for your house. Our team of experienced home buyers specializes in assisting homeowners who are confronted with foreclosure or other challenging circumstances. We can present you with a reasonable and fair price for your property, as well as aid you in avoiding foreclosure.
Finally, we also offer free foreclosure resources that can help you navigate the foreclosure process and understand your options. Included in these resources are details on collaborating with your lender, tips on how to arrange a loan modification, and strategies to steer clear of foreclosure entirely.