Given the staggering number of properties undergoing foreclosure nationwide, it is crucial that both purchasers and mortgage lenders possess a comprehensive comprehension of the associated procedures.
So what is a pre-foreclosure in Florida anyway?
Numerous residential property owners throughout the United States, including those residing in Florida, are currently grappling with the challenge of fulfilling their monthly mortgage obligations.
Upon missing three to six consecutive payments, the lending institution will issue a warning to the homeowner, indicating that failure to pay may result in the forfeiture of their property, marking the commencement of the “pre-foreclosure” period.
Normally, banks and mortgage lenders provide homeowners with a grace period of three months to rectify their payment status, although this timeframe can vary depending on the particular bank and the homeowner’s unique circumstances.
Should the homeowner still be unable to make the necessary payments, the bank will proceed with foreclosure proceedings, taking possession of the property and forcibly removing the homeowner. However, during this stage of the foreclosure process, mortgage holders are presented with several options to potentially prevent the loss of 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 Florida 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 Florida like us at 123SoldCash.com - Phone: 786-904-1444, 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 Florida 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 will sell your property for a value that is lower than its current market worth, and the bank will absorb the loss as a tax deduction. However, in certain short sale transactions, you may still be obligated to pay the remaining balance to the lender if the property does not generate enough proceeds to cover the outstanding loan balance.
- You may be able to declare bankruptcy, Opting for bankruptcy provides a temporary respite to repay debts, but it may leave a long-lasting impact on your credit report for several years, potentially resulting in substantial harm.
Lenders possess a keen understanding of the prevailing financial challenges that are rampant nationwide and are frequently inclined to collaborate with borrowers.
By being forthright and maintaining open channels of communication with your lender, you may discover alternatives that enable you to retain your residence or mitigate the impact on your credit score.
Foreclosure proceedings have the potential to adversely affect your credit rating by anywhere from 200 to 400 points, precluding the possibility of obtaining any loans for a period of 5 to 7 years, thus, exercising due diligence is critical if you have 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.
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 Florida area house – We buy houses in Florida and would love to make you an all-cash offer on your house too. Just fill out the form here to get started >>
- You have the liberty to inquire with us, and in response, we can furnish you with complimentary counsel and materials that enable you to arrive at an informed conclusion. This offering is entirely devoid of charge, and devoid of any coercion or commitment on your part – purely unrestricted guidance, sans any strings attached.
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.