The number of foreclosures is on the rise over the last few years, which is why it is essential that house owners inform themselves on the foreclosure procedure. If you’re already dealing with a pre-foreclosure in Memphis, you’re going to want to read on…
So what is a pre-foreclosure in Memphis anyway?
In Memphis and throughout the country, countless house owners are having a hard time to make their regular monthly home mortgage payments.
To go into the pre-foreclosure phase, a homeowner must have missed out on 3-6 home mortgage payments. The lending institution will then issue a warning letter that essentially says “pay up or lose your house.”
Usually, a loan provider will provide the house owner 3 months to make up on their payments, however this number varies among institutions and situations. Nevertheless, if a house owner cannot catch up their home mortgage within the time offered to them, the bank will foreclose on their home, assume ownership, and eventually evict the property owner.
Throughout this stage of the foreclosure process, however, a home mortgage holder can benefit from several alternatives in order to keep the home under their possession.
Options for Borrowers Facing Pre-Foreclosure in Memphis
When a Memphis house owner lags on their payments, they will generally be sent a “notice of default” by their lending institution. This letter will inform them that they have actually not made a mortgage payment in 90-180 days, however it’s important not to panic.
In reality, there are lots of choices that can postpone (and avoid) the loss of your Memphis house…
Option A: Refinance
If you’re still above water, meaning you have equity in your home, you can possible re-finance and lower your month-to-month payment. You can consult your local Memphis mortgage broker or contact us to be put in touch with a trustworthy refinancing business.
Option B: Sell Your Home To An Investor Like Moses Buys Houses
Another option is to get out of your Memphis house before it puts a big ding on your credit rating by selling fast to a real estate investor. Try to find a credible one in Memphis, like us at Moses Buys Houses. You can then use the cash to pay the back-payments (we might be able to figure out an agreement where the loan provider relieves all or part of your back-payments). Often, the procedure just takes a week or more and it saves you the trouble of finding a purchaser.
Option C: List Your Home As A Short Sale
If you think your home in Memphis will sell on the market, you can likewise contact the bank and ask if they’ll allow you to try a short sale. You will have 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 have to pay the difference if you cannot sell the house for the total amount you owe on it.
Option D: Declare Bankruptcy
As a last option, you might be able to initiate bankruptcy so that you can get more time to pay off your financial obligation. Bear in mind this will trigger substantial damage to your credit and will stop you from getting loans for years to come.
Don’t lose hope…
Financial hardship has actually struck many individuals across the nation, and lenders understand it. They want to work with borrowers in a lot of circumstances.
If you communicate truthfully with your lending institution, they will tell you about lots of potential alternatives so you can remain in your home and keep bankruptcy or foreclosure off your credit record.
Experiencing a foreclosure will generally 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 7 years. If you have actually received a Notice of Default in Memphis, you have to act fast to prevent a foreclosure at all costs.
If you are not able to land on a solution by dealing with your lending institution directly, connect with us. We might have the ability to assist you in preventing a huge ding on your credit report.
Ways We Can Help If You’re In Pre-Foreclosure in Memphis
We might have the ability to help you with a short sale. Submit your information on this website and we’ll evaluate your situation to see if we can be of support.
We will make you an all-cash offer on your house. We buy homes in Memphis all the time. Simply complete the form to get a no-obligation all cash offer.
Ask us anything about the procedure and how to deal with pre-foreclosure in Memphis. We would more than happy to provide FREE resources and assistance 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 Memphis, you have time to correct your scenario.