The amount of foreclosures is on the rise over the last few years, which is why it is essential that house owners educate themselves on the foreclosure procedure. If you’re already dealing with a pre-foreclosure in Huntsville, you’re going to want to read on…
So exactly what is a pre-foreclosure in Huntsville anyway?
In Huntsville and across the country, thousands of house owners are struggling to make their monthly home mortgage payments.
To get in the pre-foreclosure stage, a property owner needs to have missed 3-6 mortgage payments. The lender will then issue a caution letter that essentially says “pay up or lose your home.”
Generally, a lender will provide the homeowner 3 months to make up on their payments, however this number varies amongst organizations and scenarios. However, if a homeowner fails to make up their mortgage within the time provided to them, the bank will foreclose on their home, assume ownership, and ultimately evict the property owner.
During this phase of the foreclosure process, though, a home mortgage holder can take advantage of multiple options in order to keep the home under their possession.
Options for Borrowers Facing Pre-Foreclosure in Huntsville
When a Huntsville house owner is behind on their payments, they will typically be sent a “notice of default” by their mortgage company. This letter will notify them that they have not made a mortgage payment in 90-180 days, but it’s important not to panic.
In reality, there are lots of alternatives that can delay (and prevent) the loss of your Huntsville home…
Option A: Refinance
If you’re still above water, meaning you have equity in your home, you can possible re-finance and reduce your monthly payment. You can talk to your regional Huntsville mortgage broker or call us to be put in touch with a reliable refinancing business.
Option B: Sell Your Home To An Investor Like Moses Buys Houses
Another choice is to sell your Huntsville house before it puts a substantial ding on your credit rating by selling fast to an investor. Search for a respectable one in Huntsville, like us at Moses Buys Houses. You can then use the cash to pay the back-payments (we may be able to work out a contract where the lender eliminates all or part of your back-payments). Often, the procedure just takes a week or more and it saves you the difficulty of securing a purchaser.
Option C: List Your Home As A Short Sale
If you think your home in Huntsville will sell on the market, you can also contact the bank and ask if they’ll permit you to attempt a short sale. You will need to sell the house 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 your house for the total amount you owe on it.
Option D: Declare Bankruptcy
As a last option, you might be able to declare bankruptcy so that you can get more time to pay off your debt. Bear in mind this will trigger significant damage to your credit and will stop you from getting loans for many years to come.
Don’t lose hope…
Financial hardship has hit numerous people throughout the nation, and lenders understand it. They want to work with borrowers in many scenarios.
If you interact truthfully with your loan provider, they will tell you about lots of potential options so you can stay in your home and keep insolvency or foreclosure off your credit record.
Experiencing a foreclosure will generally bring your credit rating down by 200-400 points, and it will most likely prevent you from obtaining any sort of loan for the next seven years. If you have received a Notice of Default in Huntsville, you have to act fast to prevent a foreclosure at all costs.
If you are unable to land on a solution 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 Huntsville
We may have the ability to help you with a short sale. Send your information on this website and we’ll evaluate your situation to see if we can be of assistance.
We will make you an all-cash offer on your house. We buy homes in Huntsville all the time. Simply submit the form to get a no-obligation all cash offer.
Ask us anything about the procedure and how to deal with pre-foreclosure in Huntsville. We would be happy to provide FREE resources and guidance to help you make an educated decision. It won’t cost you anything and there is no pressure or commitment.
The best guidance is not to panic. If you’re in pre-foreclosure in Huntsville, you have time to correct your scenario.