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 Brevard County anyway?
Many homeowners across America, including Brevard County are facing difficulties making their monthly mortgage payments due to the COVID-19 pandemic and economic changes. When a homeowner is unable to pay 3-6 months of their 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. This number could vary depending on the bank and situation. If a homeowner is unable to make the necessary payments, the bank will foreclose on the home, assume ownership, and evict the homeowner. During this stage of the foreclosure process, the homeowner has the opportunity to take advantage of several options to prevent them from losing their home.
Pre-foreclosure Options for Borrowers
If you’re behind on your monthly mortgage payments, you’re likely to receive a “notice of default” from your mortgage lender. This document will state that you have not tendered your 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 Brevard County 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 Brevard County like us at House Beagle, using the cash acquired to pay the months of back-payments owed. We can buy your Brevard County FL area home quickly, often closing in just a week or two. We will pay in cash, 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 the amount outstanding.
- You may be able to declare bankruptcy. This can buy you time to pay your debt. Bankruptcy will remain on your credit report for years, and can cause significant damage to your credit report, often leading to higher payments and increased interest rates.
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 diligent 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 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 Brevard County area house – We buy houses in Brevard County 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 still have time to fix this situation as long as you act quickly. 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.