The amount of foreclosures is on the upswing recently, which is why it is important that homeowners educate themselves on the foreclosure procedure. If you’re already dealing with a pre-foreclosure in Birmingham, you’re going to want to read on…
So exactly what is a pre-foreclosure in Birmingham anyhow?
In Birmingham and across the country, thousands of house owners are struggling to make their monthly home mortgage payments.
To enter the pre-foreclosure phase, a property owner needs to have missed 3-6 mortgage payments. The loan provider will then send a caution letter that essentially says “pay up or lose your home.”
Generally, a lender will offer the homeowner three months to catch up on their payments, however this number varies among organizations and circumstances. Nevertheless, if a house owner fails to make up their home mortgage within the time supplied to them, the bank will foreclose on their house, assume ownership, and eventually force out the homeowner.
Throughout this stage of the foreclosure process, however, a home loan holder can take advantage of several alternatives in order to keep the house under their ownership.
Options for Borrowers Facing Pre-Foreclosure in Birmingham
When a Birmingham house owner is behind on their payments, they will typically be sent out a “notice of default” by their lender. This letter will inform them that they have not made a home loan payment in 90-180 days, however it’s important not to panic.
In reality, there are lots of choices that can postpone (and prevent) the loss of your Birmingham house…
Option A: Refinance
If you’re still above water, indicating you have equity in your house, you can possible re-finance and reduce your month-to-month payment. You can consult your regional Birmingham mortgage broker or call us to be put in touch with a reputable refinancing company.
Option B: Sell Your Home To An Investor Like Moses Buys Houses
Another option is to sell off your Birmingham home before it puts a substantial ding on your credit history by selling quick to an investor. Try to find a trustworthy one in Birmingham, like us at Moses Buys Houses. You can then utilize the money to pay the back-payments (we might be able to work out a contract where the lender eliminates all or part of your back-payments). Typically, the procedure just takes a week or more and it saves you the difficulty of securing a buyer.
Option C: List Your Home As A Short Sale
If you believe your house in Birmingham will sell on the market, you can likewise call the bank and ask if they’ll enable you to attempt a short sale. You will need to sell the house for less than it is worth, and the bank will take that loss and deduct it on their taxes. You might still have to pay the balance if you cannot sell the house for the total amount you owe on it.
Option D: Declare Bankruptcy
As a last option, you may be able to declare bankruptcy so that you can get more time to pay off your debt. Remember this will cause considerable damage to your credit and will stop you from getting loans for years to come.
Don’t lose hope…
Financial difficulty has actually struck numerous people across the nation, and lending institutions know it. They are willing to work with customers in a lot of scenarios.
If you interact truthfully with your lending institution, they will inform you about numerous potential alternatives so you can remain in your house and keep bankruptcy or foreclosure off your credit record.
Experiencing a foreclosure will typically bring your credit score down by 200-400 points, and it will more than likely stop you from obtaining any sort of loan for the next seven years. If you have received a Notice of Default in Birmingham, you need to act quick to avoid a foreclosure at all expenses.
If you are not able to land on an option by dealing with your lending institution directly, connect with us. We may have the ability to assist you in avoiding a bad ding on your credit report.
Ways We Can Help If You’re In Pre-Foreclosure in Birmingham
Short Sale
We might have the ability to assist you with a short sale. Send your info on this site’s form below and we’ll evaluate your scenario to see if we can be of support.
Cash Sale
We will make you an all-cash offer on your home. We buy houses in Birmingham all the time. Just submit the form to get a no-obligation all cash offer.
Suggestions
Ask us anything about the process and how to deal with pre-foreclosure in Birmingham. We would more than happy to supply FREE resources and guidance to assist you make an informed choice. It won’t cost you anything and there is no pressure or commitment.
The best suggestion is not to panic. If you’re in pre-foreclosure in Birmingham, you have time to remedy your situation.
Reach out to us and we would be pleased to offer any help we can by buying your home or offering complimentary foreclosure resources.
