Real estate can be volatile, so it’s important for both buyers and mortgage holders to understand the process of what a foreclosure is.
What is a pre-forclosure in Atlanta?
All across America and Atlanta, owners are having trouble with their monthly mortgage payments.
If you missed three to six months of mortgage payments, whoever your lender is will issue you a warning. This warning is known as a pre-foreclosure, and it tells you that you either need to pay the mortgage or you lose your home.
Typically, you have three months in order to pay your missed mortgage payments. This can vary from banking situation as well. If you’ve defaulted multiple times on your mortgage payment, then you might have less time given.
If the necessary payments aren’t made at this time, then the bank will foreclose on the home. That means that the bank will take over ownership of the home and evict the homeowner from the premises. Luckily, during this foreclosure process, a mortgage holder has the opportunity to take advantage of several options so they don’t lose their home.
What are my pre-foreclosure options?
Oftentimes you’ll receive a “notice of default” from your lender, if you’re behind on your payments.
It’ll tell you how long you’ve not made your mortgage payment, likely for somewhere between the last 90 and 180 days.
If this happens to you, you have options that can delay or prevent the loss of your home:
- If you have equity in your house, you may simply be able to refinance your mortgage and have lower monthly payments. Check with your real estate agent or lender or get in contact with us and we can help you find someone to refinance. Lower payments mean more manageability.
- Selling your house quickly for cash may also be a good idea. If you know that you aren’t going to be able to pay your monthly mortgage payments, selling your house for cash, using some of it to pay back to back payments, and then using that cash to purchase a new home or relocate isn’t a bad idea. We can buy your house for cash in Atlanta, and we do it quickly. It’s a quick and easy way out of this predicament.
- You can contact the bank and do a short sale.You’ll sell your home for less than it’s worth. And the bank takes the loss as a tax write off. You might still have to pay the difference in what you owe the bank if the sale of your house isn’t enough to cover what you owe.
- Your last option would be to declare bankruptcy. This is never your best choice because it will remain on your credit report for years, and will cause significant damage to your ability to get a loan.
Lenders know that there are widespread financial troubles all across Atlanta. More often than not, they’re willing to work with borrowers.
If you communicate with your banking lender, you’ll find that there are some options that will allow you to remain in your home. Even if you can’t remain in the home, there are some things you can do to prevent damage to your credit score.
Communicating with your lender is the most important thing you can do. If you talk to them and you’re willing to negotiate, you might find ways to prevent the foreclosure from going through.
Your credit score can drop by 200 to 400 points, depending on the severity of the foreclosure. You’ll also lose the ability to get a new loan from anywhere between five to seven years. Your credit score taking that large of a hit could take over a decade to repair!
If you can’t get in touch or work with your lender to find a way out of it, get in contact with us instead.
How Can We Help You With Your Pre-Foreclosure?
- We can help you with a short sale. Send us your info, and we’ll let you know what we can do.
- We can directly buy your Atlanta house. We buy houses in Atlanta for cash. Our sales are quick and painless with our fastest sale being only seven days.
- You can ask us questions and we’ll give you guidance for free. Talking to us, getting advice or even asking for an offer on your house won’t cost you a cent and there are no contracts involved. There’s no better price than free!
If you’re just in the pre-foreclosure stage, then there’s time to rectify the situation that you found yourself in.
Whether you connect with your bank, another loan giver, or have us buy your house, you have options and we can help you figure out which one is correct.