With millions of homes across the country going into foreclosure, it’s important for both buyers and mortgage holders to understand the process.
Understanding Pre-Foreclosure in Phoenix: Key Insights and Options
Many homeowners across America and Phoenix are facing difficulties making their monthly mortgage payments.
When a homeowner misses 3-6 months of 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. Of course, this number can vary by bank and situation sometimes.
If a homeowner fails to make the necessary payments, the bank will foreclose on the home, assuming ownership, and evict the homeowner. Thankfully, during this stage of the foreclosure process, a mortgage holder has the opportunity to take advantage of several options to prevent losing their home.
Pre-foreclosure Options for Borrowers
If you’re behind on mortgage payments, you’re likely to receive a “notice of default” from your mortgage lender.
This document will state that you have not made 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 Phoenix 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 Phoenix like us at Oak Street Properties, using the cash acquired to pay the months of back-payments owed (or we *may* be able to work out something with the lender that relieves all or part of your back payments. We can buy your Phoenix AZ area home quickly, often in just a week or two, will pay in cash, and takes 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 what is owed on the loan.
- You may be able to declare bankruptcy, which can buy you time to pay your debt. Bankruptcy will remain on your credit report for years and can cause significant damage.
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 dutiful 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
If you find yourself in the pre-foreclosure stage, it’s important to know that you still have options and time to address the situation. Here are some ways we can assist you:
Short Sale Assistance
We can potentially help with a short sale. A short sale occurs when your lender agrees to accept a payoff amount less than what is owed on the mortgage. This can be a viable option if your home is worth less than the remaining mortgage balance. By submitting your information on our website, we can evaluate your situation and determine if a short sale is a suitable solution for you.
Cash Offers for Your Home
We buy houses in the Phoenix area and would love to make you an all-cash offer on your property. Selling your home for cash can be a quick and hassle-free way to avoid foreclosure. Our process is straightforward: simply fill out the form on our website to get started. Once we receive your information, we will review it and make you a fair cash offer. This can provide you with the funds you need to pay off your mortgage and move forward without the burden of foreclosure.
Free Guidance and Resources
We understand that navigating pre-foreclosure can be overwhelming. That’s why we offer free guidance and resources to help you make an informed decision. You can ask us any questions you have, and we will provide you with the information you need at no cost. There’s absolutely no pressure or obligation—just free, helpful advice to assist you in understanding your options.
Working with Your Bank
If you’re in the pre-foreclosure stage, it’s crucial to communicate with your bank. Many lenders are willing to work with homeowners to find a solution that avoids foreclosure. This might include loan modifications, repayment plans, or forbearance agreements. By reaching out to your bank, you can explore these options and potentially find a way to keep your home.
Exploring All Options
Every homeowner’s situation is unique, and there is no one-size-fits-all solution. It’s important to explore all available options and choose the one that best fits your circumstances. Whether it’s a short sale, a cash offer, or working with your bank, taking proactive steps can help you avoid foreclosure and protect your financial future.
Contact Us for Help
If you’d like to see what we can offer for your house or if you want to access our free foreclosure resources, don’t hesitate to contact us. We’re here to help you navigate this challenging time and find the best solution for your needs. Remember, you have options, and we’re here to support you every step of the way.
By taking advantage of these resources and seeking professional assistance, you can address your pre-foreclosure situation effectively and move forward with confidence. Don’t wait—reach out to us today to explore your options and take control of your financial future.