The number of foreclosures is on the rise over the last few years, which is why it is important that property owners inform themselves on the foreclosure process. If you’re already dealing with a pre-foreclosure in Chattanooga, you’re going to want to read on…
So exactly what is a pre-foreclosure in Chattanooga anyhow?
In Chattanooga and throughout the country, countless homeowners are struggling to make their monthly home mortgage payments.
To go into the pre-foreclosure phase, a house owner must have missed 3-6 home mortgage payments. The lending institution will then issue a caution letter that generally states “pay up or lose your house.”
Normally, a loan provider will give the homeowner 3 months to catch up on their payments, but this number varies among organizations and circumstances. However, if a house owner cannot catch up their home loan within the time provided to them, the bank will foreclose on their house, take over ownership, and ultimately evict the property owner.
During this phase of the foreclosure process, though, a home mortgage holder can benefit from multiple options in order to keep the home under their possession.
Options for Borrowers Facing Pre-Foreclosure in Chattanooga
When a Chattanooga property owner lags on their payments, they will generally be sent out a “notice of default” by their loan provider. This letter will inform them that they have not made a home loan payment in 90-180 days, but it’s important not to panic.
In actuality, there are many alternatives that can postpone (and prevent) the loss of your Chattanooga house…
Option A: Refinance
If you’re still above water, implying you have equity in your house, you can possible refinance and decrease your monthly payment. You can contact your local Chattanooga mortgage broker or contact us to be connected with a trustworthy refinancing company.
Option B: Sell Your Home To An Investor Like Moses Buys Houses
Another alternative is to sell off your Chattanooga home before it puts a substantial ding on your credit history by selling fast to a real estate investor. Search for a credible one in Chattanooga, like us at Moses Buys Houses. You can then utilize the cash to pay the back-payments (we might be able to work out an agreement where the lending institution eliminates all or part of your back-payments). Often, the procedure only takes a week or more and it saves you the problem of securing a buyer.
Option C: List Your Home As A Short Sale
If you think your house in Chattanooga will sell on the open market, you can likewise call the bank and ask if they’ll allow you to attempt a short sale. You will need to sell the home for less than it is valued at, and the bank will take that loss and deduct it on their taxes. You might still need to pay the difference if you cannot sell the house for the amount you owe on it.
Option D: Declare Bankruptcy
As a last hope, you may be able to initiate bankruptcy so that you can buy more time to settle your debt. Keep in mind this will cause significant damage to your credit and will stop you from getting loans for several years to come.
Don’t lose hope…
Financial hardship has actually hit many individuals across the country, and loan providers understand it. They are willing to work with debtors in many scenarios.
If you interact truthfully with your lender, they will inform you about lots of possible options so you can remain in your home and keep bankruptcy or foreclosure off your credit record.
Experiencing a foreclosure will typically bring your credit report down by 200-400 points, and it will probably stop you from obtaining any sort of loan for the next seven years. If you have gotten a Notice of Default in Chattanooga, you need to act quickly to avoid a foreclosure at all expenses.
If you are unable to find a solution by dealing with your lender directly, connect with us. We may have the ability to help you in avoiding a huge ding on your credit report.
Ways We Can Help If You’re In Pre-Foreclosure in Chattanooga
We might have the ability to help you with a short sale. Send your information on this website and we’ll evaluate your circumstance to see if we can be of assistance.
We will make you an all-cash offer on your home. We buy homes in Chattanooga all the time. Simply submit the form to obtain a no-obligation guaranteed cash offer.
Ask us anything about the procedure and how to deal with pre-foreclosure in Chattanooga. We would more than happy to offer FREE resources and assistance to help you make an informed decision. It will not cost you anything and there is no pressure or commitment.
The best recommendation is not to panic. If you’re in pre-foreclosure in Chattanooga, you have time to remedy your scenario.