There are millions of homes across the country which are going into foreclosures therefore, it is important for mortgage holders and buyers to comprehend the process.
What is a Pre-Foreclosure in Florida?
Homeowners across America and in Palm Beach County are increasingly facing the difficulty of making monthly mortgage payments. Usually, if the homeowner misses the payments of mortgage for 3-6 months, then the lending institution will issue a warning and will notify the homeowner to make payments or lose their home. This period is known as Pre-foreclosure.
Typically banks and mortgage lenders provide three months time to the homeowner to become current. However, this number may vary by different banks and situations. If during this time, the homeowner fails to make the payments, then the bank will take the step of foreclosing on the home. It will assume the ownership of the house and evict the homeowner. However, the mortgage holder, during this stage has the opportunity to take several steps to prevent losing their home.
Pre-foreclosure Options for Borrowers
You are likely to receive a notice of default from your mortgage lender if you are behind on your monthly payments. The document states that you have failed to make mortgage payments for the last 90-180 days. It is important not to panic.
Options that can delay or prevent losing your home:
- If you have a mortgage that is “above water” which means that you have equity in your house, then you have advantage to possibly be able to refinance your mortgage and lower the monthly payments. Check with your local Palm Beach County mortgage broker or contact us and we will connect you with a reputable broker.
- You can also choose to sell your house to real estate investor that has a reputation in Palm Beach County. We at Home Solutions FLA buy houses in Palm Beach County Florida for quick cash and can close in as little as a week. You can use this money to make the payments due to your lender. This will relieve you from the stress of finding a buyer.
- Contact the bank and seek permission from them for a short sale. In a short sale you will sell your home for less than it’s worth, and the bank will bear the loss as a tax write off. However, some banks still require paying the difference if the it does not receive the amount it owed.
- You can simply declare bankruptcy, which will help you to buy time to pay your debt. However, bankruptcy will stay on your credit reports for years and will cause significant damage.
Many of the lenders are aware of the financial troubles and therefore they are willing to work with the borrowers. You will find that you have more options than you were probably aware of and your lender should be willing to cooperate if you are honest with them. They will allow you to remain in your home or at least help you to save your credit score.
Usually, a foreclosure can have a negative impact on your credit score and affect it by 200-400 points. A negative credit rating will prevent you from obtaining a loan for a good 5-7 years. Thus, you need to be very dutiful once you receive a Notice of Default from your lender.
Contact us if you are still not able to find a solution with your lender. We may be able to help you.
Ways we can help you if you are in Pre-Foreclosure
- We can help you with a short sale. All you have to do is to submit your information on this website so that we can evaluate your situation and see how we can extend our help to you.
- We can buy your Palm Beach County area house. We are real estate investors who buy houses in Palm Beach County and would love to make you an all cash offer on your house. Fill out the form here to get started.
- Feel free to ask us questions and we will happily provide you free guidance and resources so that you make a wise decision regarding your house. This guidance will cost you nothing and you will be under no pressure or obligation.
If you are in a pre-foreclosure stage, you still have time to fix your situation. Just contact your bank and see how they are willing to work with you. Otherwise, you may contact us to see what we can offer you for your house or take advantage of our free foreclosure resources.
Want to discuss your pre-foreclosure options?
Call us at (561) 370-8335 or submit your information here to get a cash offer!!