With millions of homes in foreclosure across the country, it’s critical for both buyers and mortgage holders to understand the process.
So what is a pre-foreclosure in White Settlement
Many homeowners in America, including White Settlement, are struggling to make their monthly mortgage payments. The term “pre-foreclosure” refers to the first stage of a legal proceeding that can result in the repossession of a property from a defaulted borrower.
When a homeowner misses a mortgage payment, the lending institution will notify the homeowner that they must pay or risk losing their home. This is referred to as “pre-foreclosure“. In Texas, the lender may begin notifying the borrower after 90 days that they are beginning the foreclosure process with a “Notice of Default and Intent to Accelerate” letter.
Banks and mortgage lenders typically give the homeowner three months to catch up. Of course, this number can vary depending on the bank and the situation. The lender files a notice of default on the property in pre-foreclosure because the borrowing owner exceeds the contractual terms for delinquent payments. A notice of default informs the borrower that the lender is pursuing legal action to foreclose on the loan.
Learn more about Notice of Default on our recent blog.
If a homeowner fails to make the necessary payments, the bank will foreclose on the home if a homeowner fails to make the required payments, the bank will foreclose on the property, taking ownership and evicting the homeowner. Fortunately, mortgage holders have several options available to avoid losing their homes during this foreclosure process.
Borrowers’ Pre-foreclosure Options
If you fall behind on your mortgage payments, your mortgage lender will most likely send you a “notice of default.”
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 you have equity in your home and your mortgage is “above water,” you may be able to refinance and receive lower monthly payments. Consult with a mortgage broker in White Settlement… 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 White Settlement like us at TMC 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 White Settlement, 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 request a short sale. You will sell your home for less than it is worth in a short sale, and the bank will take the loss as a tax write-off. If the house does not sell for the amount owed on the loan, you may still be required to pay the difference to the bank in some short sales.
- You may be able to file for bankruptcy, which will give you more time to pay off your debt. Bankruptcy will remain on your credit report for years and can have serious consequences.
Lenders are well aware of the widespread financial difficulties across the country, and they are often willing to work with borrowers.
If you’re honest and communicate with your lender, you’ll often discover that there are options that will allow you to stay in your home or, at the very least, salvage your credit rating.
A foreclosure can often lower your credit score by 200-400 points and prevent you from obtaining any type of loan for 5-7 years, so if you’ve received a Notice of Default from your lender, be extremely cautious.
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 White Settlement house – We buy houses in White Settlement 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.
Want To Discuss Your Pre-Foreclosure Options? Call Us at (817) 550-5069 Opt# 1 OPT#1
Or, Submit Your Info Here To Get A Cash Offer On Your House >>
TMC Property Solutions is a Veteran owned and family-run business and has been helping families for 20+ years “Sell your house fast in Dallas Fort Worth “and surrounding cities, providing solutions that work. We are an accredited business, an A+ rated member of the Fort Worth BBB.
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