With foreclosure rates increasing across the country, it is important to know the process. Understanding what is happening to you will help both yourself and your lender work through this. What does it mean when the mortgage company sends you “pre-foreclosure” paperwork? What is a pre-foreclosure?
Hmmmm … what is a pre-foreclosure in Bristol anyway?
Homeowners across American and unfortunately here in Bristol are experiencing difficulties paying their mortgages. According to Forbes.com, foreclosure rates have increased slightly in May 2022, indicating they will continue the process of repossessing homes as normal.
When a homeowner misses 3-6 months of mortgage payments, their lender will issue a warning notice. This notifies the homeowner to pay, or they will lose their home. This is the period known as, “pre-foreclosure”.
While every mortgage company have a different process, you will typically be given a couple of months after the first “pre-foreclosure notice” to become current with your payments. This timeframe can and does vary.
If a homeowner fails to make the necessary payments for whatever reason, the bank can foreclosure on the home, taking ownership. Banks and lending companies are not in the business to own homes. So it is in everyone’s best interest to communicate and work together to find a feasible solution.
Don’t worry – you have options still!
If you’re behind on mortgage payments, you are likely going to receive a “notice of default” from your lender. This document will state that you have not made your mortgage payments for the last 90-180 days. It is important to not panic, but to act quickly!
There are options that can delay or even prevent you from losing your home:
- If you have equity in your home, you may discuss with your lender about refinancing your mortgage. This will help to lower your monthly payments and allow you to continue on prior to your financial hardship. Check with your local Bristol mortgage broker to see your options!
- You may be able to quickly sell your home to a real estate investor that’s reputable in Bristol like us at Valley Residential Group LLC, especially if there is equity in your home! Using the cash acquired at the closing to pay the months of back-payments owed. We can often close in as little as a week or two and will pay you cash for your home. Take the stress out of finding a buyer and call us today!
- You can contact your bank and ask them to permit a short sale. If there is little to no equity in the home, then a short sale is necessary. The bank will allow you to sell your home for a lesser amount that what you owe. The bank will take the financial hit in order to help you sell your home and find something that better fits your financial needs.
- You may be able to declare bankruptcy. This will help you buy a little time and pay your debts. Bankruptcy will remain on your credit report for years and may cause significant damage. It is important to discuss all options with a qualified attorney!
Lending companies and banks are very much aware of the financial hardships occurring in our country and across the world right now. They are willing to work with homeowners to find options that will work for all parties involved.
In order to maintain a working relationship, as the homeowner in distress be sure to stay calm and keep an open line of communication with your bank. Be prepared to meet deadlines and take thorough notes throughout the process in order to keep your thoughts collected.
Foreclosure can be a stressful time and if seen through, can have a negative impact on your credit score. While everyone is going through a different financial situation, it is best to avoid a foreclosure if at all possible.
If you are not able to find a solution with your lender that works for your family .. call us, we may be able to help!
Ways We Can Help If You’re In Pre-Foreclosure
- We can buy your house – if there is equity in your property and you are in the position to move .. then call us today! We can make an offer on your house that you can bring back to the bank. We buy houses in Bristoland would love to make you an all-cash offer on your house too. Just fill out the form here to get started!
- We can potentially help with a short sale – Submit your info on this website and we can evaluate your situation to see if we can help!!
Visit the state of Connecticut’s website to find more recourses on what is pre-foreclosure, avoiding foreclosure, and to find other options you may have!