Pre-foreclosure is when a property is in the process of being repossessed. The minute a borrower defaults on their promise, a pre-foreclosure takes place.
Does pre foreclosure hurt your credit?
Since pre-foreclosure typically only occurs after three successive missed mortgage payments, a borrower’s credit score has often taken a significant hit by the time pre-foreclosure begins.
What does foreclosure do to your credit?
It is possible to qualify for a mortgage after a foreclosure. However, foreclosure will hurt your credit. Foreclosure information generally remains in your credit report for seven years from the date of the foreclosure.
What does pre foreclosure Notice Of Default mean?
Notice of Default (NOD): In nonjudicial foreclosure, this is the official notice (it can be a letter) that the lender sends to the borrower letting him know that that the lender plans to foreclose because he hasn’t made his payments. The lender may tell the borrower how much he can pay to stop foreclosure and by when.
Is My House in Pre-foreclosure?
Before your house goes into pre-foreclosure, you will receive a legal notice of default, alerting you to the risk of your house ending up in pre-foreclosure. If you haven’t made payments to your mortgage in over three months, it is likely your home will fall into pre-foreclosure, as well.
Tom and Nancy Buy Houses are asked these questions all the time, we would love to sit down with you and discuss your options. Don’t be ashamed, you aren’t alone!
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 Los Banos and Surrounding areas anyway?
Many homeowners across America and Los Banos and Surrounding areas 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.”
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. You can try and sell your house, you can for sale by owner, you can do a short sell or you can call on a hybrid agent like the professionals at Tom and Nancy Buy Houses.
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 Los Banos and Surrounding areas 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 Los Banos and Surrounding areas like us at Tom and Nancy Buy Houses, using the cash acquired to pay the months of back-payments owed (or Tom or Nancy *may* be able to work out something with the lender that relieves all or part of your back payments. Tom and Nancy Buy Houses can buy your Los Banos and Surrounding areas CA area home quickly, often in just a week or two, will pay in cash, or give you an option that you just love, 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 at least 7-10 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 Tom and Nancy Buy Houses. We may be able to help.
Ways Tom and Nancy Buy Houses Can Help If You’re In Pre-Foreclosure
- Tom and Nancy 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.
- Tom and Nancy can buy your Los Banos and Surrounding areas area house – We buy houses in Los Banos and Surrounding areas and would love to make you a quick 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 Tom and Nancy Buy Houses can buy your house for or to tap into our free foreclosure foreclosure resources.
Tom and Nancy Buy Houses are here for you. We will listen to you, ask questions of you, look at your house and give you the necessary means that you need to move forward. Tom and Nancy want this to be a win win situation for you.