Help for Homeowners in Pre-foreclosure

What Is Pre-foreclosure?

Pre-foreclosure is the first phase of the foreclosure process that begins when a homeowner fails to make payments on their mortgage. A lender files a default notice on the property when a homeowner is at least three months behind their regular monthly mortgage payments. In this situation, the homeowner has three options: pay off the debt, sell the home, or face foreclosure.

What Should You Do If Your Property Goes Into Pre-foreclosure?

Even if you are faced with pre-foreclosure, there are certain things you can do to help yourself, avoid foreclosure, and save your home. Here are your options.

Consider a Loan Modification

Once you are late with your mortgage payment, make sure to contact your lender as soon as possible and ask about loan modification. A loan modification is a rewrite of the current loan without the closing costs. With the help of this option, you can extend the life of your loan and spread out your monthly payments over more years, which will provide you with more affordable payments.

Try a Short Sale

A short sale is a process where you sell your property for less than the remaining balance on the mortgage. It is a very common and effective option to avoid foreclosure. Most lenders accept a short sale because it saves them the expense and time of foreclosing on a property. However, a short sale has its own disadvantages. One of them is time. A short sale takes much more time than a traditional sale.

Choose a Deed in Lieu

A deed in lieu is the process of voluntarily transferring the title of the property to a lender. A deed in lieu means that the mortgage lender and the homeowner have reached a mutual understanding that the homeowner is not able to continue making mortgage payments. With a deed in lieu, the lender agrees not to put the homeowner into foreclosure if they hand the property over amicably. However, if you decide to choose this option, you should understand that a deed in lieu still causes credit damage that will take a few years to recover.

Borrow Money

You can always try to pay your debt off in order to stop the pre-foreclosure process and avoid foreclosure. If you do not have money to cover your payments, you can always ask your friends or relatives to help you. You may feel uncomfortable to ask, but it is better than your home being put into foreclosure. That has a serious negative impact on your credit history.

Sell Your Home Fast

Another option that is worth considering is selling your home fast to an Omaha, NE home investor or cash buyer. The best thing about this option is that home investors are ready to purchase homes as-is and do it fast. You will be able to sell your property with the help of a cash buyer within two weeks.

Sell Your House Fast to Beard Bros

If you own a home in Omaha, NE, and you are facing pre-foreclosure because of missed payments, Beard Bros Buy Houses Cash is ready to help you. We buy houses in Ashland, Chalco, La Vista, Ralston, and other surrounding cities. We buy houses in any condition and under any circumstances.

We know how to deal with pre-foreclosure properties and have helped many of our clients avoid foreclosure. One of the best things about working with us is that you are able to sell your house fast, and you do not have to make any repairs or fixes. We buy homes as-is. If you have any questions, or you want to know about the selling process, feel free to visit our website or give us a call for more information.