With millions of homes across the country going into foreclosure, even here in Casa Grande, it’s important for both homeowners and mortgage holders to understand the process and available options during pre-foreclosure. With all that happening you need to know what pre-foreclosure is and your options. If you’re from Casa Grande, this should be a good read for you.
So what is a pre-foreclosure in Casa Grande anyway?
Let’s get to know the term pre-foreclosure and eventually get to find your options.
When a homeowner misses 3 to 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, then evict the homeowner. Thankfully, there is this pre-foreclosure stage of the process. Pre-foreclosure allows a mortgage holder the opportunity to take advantage of several options to prevent losing their home.
What Are 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 beginning the pre-foreclosure stage. 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 have equity in your house, then your mortgage is “above water.” The good news is one of your possible options is to refinance your mortgage. This will allow you to get lower monthly payments. All you have to do is check with your local Casa Grande mortgage broker or contact us and we can connect you with a reputable one.
- You can look at quickly selling your home to a reputable real estate investor in Casa Grande. When you sell to us at Pinal County House Buyer, you can use the cash you’re getting to pay the months of back-payments owed. We may also be able to work out something with the lender that relieves all or part of your back payments. We can buy your Casa Grande house in just a week or two and take 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. However, you get to keep your house in exchange of a good credit rating.
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. You just have to be 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.
If you don’t know the impact of a foreclosure aside from losing your home, here are the facts:
- A foreclosure can often negatively affect your credit score by 200-400 points.
- It can prevent you from obtaining a loan of any sort for 5-7 years
Once you’re in the pre-foreclosure stage with your Casa Grande house, be very dutiful if you’ve received a Notice of Default from your lender. Find out your options specific to your situation.
If you’re not able to find a solution by working directly with your lender, connect with us. We may be able to help you out. We’re Casa Grande locals who are always available to our community. We’ve helped a lot of homeowners in tough situations, some facing foreclosure and others with bills piling up. There is no one-size-fits-all solution for each situation, and we make sure to come up with a solution that best fits your particular situation.
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 Casa Grande area house – We buy houses in Casa Grande and would love to make you an all-cash offer on your house too.
- You can ask us questions and we can provide you FREE guidance and resources so you can make a well-educated decision.
Our help with finding you a win-win situation and exploring you options will cost you nothing. There’s absolutely no pressure, no obligation, just free guidance without a catch. We’re professional home buyers who also want to give back to the community.
If you’re in the pre-foreclosure stage, you still have 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 resources.