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Help for Homeowners in Pre-foreclosure
There is help for homeowners in pre-foreclosure. Here at We Buy Waco Houses, we can help you sell your house fast in Waco and the surrounding area. Just give us a call to set up a walkthrough.
What Is Pre-foreclosure?
Pre-foreclosure is the first step in the foreclosure process when a homeowner is late on a certain number of monthly mortgage payments. In most cases, a homeowner is notified about pre-foreclosure by a lender after missing three payments. If you are facing pre-foreclosure, you need to act fast in order to fix the situation and avoid foreclosure. Foreclosure is one of the worst things that can happen to a homeowner. In addition to losing your home, your credit score will be negatively affected for the following seven years.
Here are some strategies that you can try in order to stop the pre-foreclosure process.
Consider a Loan Modification
Experts recommend contacting your lender immediately, right after missing the first payment, in order to ask for a loan modification. A loan modification is a change to the current loan terms with the purpose of lowering monthly payments. It allows you to extend the life of your preexisting loan and spread out the monthly payments.
Think About a Deed in Lieu
Completing a deed in lieu is another common method used to stop the pre-foreclosure process if you are far behind your mortgage payments. With a deed in lieu, a homeowner agrees to give up the home voluntarily, and the lender agrees to stop the pre-foreclosure. The main benefit of a deed in lieu for a homeowner is that it does not affect the credit score as much as a foreclosure.
Bring Your Loan Current
Paying off your debt is probably the most effective way to stop pre-foreclosure and avoid foreclosure. Unfortunately, it is not an option for many homeowners because they may not have enough money to pay the total amount past due and late fees.
Declare Bankruptcy
Declaring bankruptcy should be considered a last resort because it usually has some severe consequences and may not prevent a homeowner from losing their home. When you file for bankruptcy, the lender cannot proceed with foreclosure until your bankruptcy case has been settled. However, this will not last forever. Depending on the type of bankruptcy, a homeowner will have two options. The first option is restructuring the debt and creating a payment plan that will allow them to keep the house. The second option is to sell the house as a part of a liquidation of the assets.
Attempt a Short Sale
If you know that you are not able to pay off the debt and cannot afford your house anymore, attempting a short sale may be the best option. However, before doing this, you need to receive permission from your lender. Otherwise, you may get into serious legal trouble. The purpose of a short sale is to sell your property for enough money to make up for what you owe to your mortgage lender. If the money you receive from a short sale is not enough, then you will have to pay the remaining balance. In most cases, a short sale is a good option, but you still need to do some research before doing it to make sure it is worth it.
Sell Your House Fast to a Cash Buyer
One of the quickest and easiest ways to prevent your property from being foreclosed on is to sell it to a cash buyer or home investor. A cash buyer will buy your home in any condition, in any location, and under any circumstances, even if you are going through the pre-foreclosure process. By selling your property to a home investor, you will be able to close the deal within two weeks.
If you live in Waco, TX, or any other nearby towns in Texas, and you want to sell your house fast,, you should contact We Buy Waco Houses. We buy houses all the time, and we are ready to buy yours. We buy houses under all circumstances, including pre-foreclosure. Don’t hesitate to contact us online or give us a call.
