With millions of homes across the country going into foreclosure, it’s important for both buyers and mortgage holders to understand the process.
So what is a pre-foreclosure in Acworth anyway?
Many homeowners across America and Acworth are facing difficulties making their monthly mortgage payments.
The lending institution will issue a warning to a homeowner who has missed 3-6 months of mortgage payments, notifying them to pay or face the risk of losing their home. This stage is referred to 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.
In the event that a homeowner misses payments, the bank may initiate foreclosure proceedings, taking possession of the property and forcing the homeowner to vacate. However, there are several options available to the mortgage holder during this phase of the foreclosure process that can help them avoid 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 Acworth 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 Acworth like us at Tyler And Alyson Buy Houses, 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 Acworth GA 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.When opting for a short sale, you sell your home at a price lower than its market value, and the bank absorbs the loss as a tax deduction. However, in some instances, you may still be obligated to pay the outstanding loan balance to the bank if the house does not sell for the amount owed.
- You may be able to declare bankruptcy, this can provide you with a grace period to repay your debt. However, it’s important to note that bankruptcy can have long-lasting effects on your credit report and lead to considerable harm.
Lenders understand that many people are facing financial difficulties across the country, and they are often willing to assist borrowers in such situations. It is common for lenders to work with borrowers and offer various solutions to help them manage their debts, such as payment plans or loan modifications. By communicating with your lender and being transparent about your financial situation, you may be able to find a solution that works for both parties. It’s important to remember that lenders are also invested in your success, as it is in their best interest to help you keep up with your payments and avoid defaulting on the loan.
Maintaining honesty and open communication with your lender can go a long way in finding viable solutions that can help you stay in your home or, at the very least, salvage your credit rating. It’s essential to remember that lenders want to avoid the costly process of foreclosure as much as you do, and they may be willing to work with you to find alternative arrangements, such as loan modifications or repayment plans. By being forthright about your financial situation and proactively seeking solutions, you may be able to avoid the negative consequences of foreclosure and protect your credit score.
Receiving a Notice of Default from your lender should be taken seriously as it can lead to foreclosure, which may have a significant impact on your credit score. Your credit score could potentially drop by 200-400 points and make it difficult to obtain any type of loan for the next 5-7 years. It’s crucial to act responsibly and take necessary steps to avoid foreclosure.
Fees That Can Be Charged During Pre-Foreclosure
If a payment is missed, many loans provide a grace period of ten or fifteen days before the servicer imposes a late fee. The servicer will charge this fee for each missed payment per month. You can refer to the promissory note you signed to determine the amount of the late charge and the duration of the grace period for your loan. Additionally, this information can be found on your monthly mortgage statement.
In Georgia, security deeds typically grant the lender, or the current loan holder referred to as the “lender” in this article, the right to take actions necessary to safeguard their interest in the property. This includes conducting property inspections to verify that the property is being appropriately maintained and occupied. Such inspections are usually conducted through drive-by visits and are typically ordered automatically when the loan goes into default. The cost of these inspections usually ranges from $20 to $30.
The servicer may impose various fees, such as those for broker’s price opinions that are similar to appraisals, and property preservation expenses, including yard maintenance or winterizing a deserted property.
Ways We Can Help If You’re In Pre-Foreclosure
- We can potentially help with a short sale – Submit your info on this website so we can evaluate your situation to see if we can help.
- We can buy your Acworth area house – We buy houses in Acworth and would love to make you an all-cash offer on your house too. Just fill out the form here to get started >>
- You can ask us questions and we can provide you FREE guidance and resources so you can make a well educated decision. This costs you nothing, there’s absolutely no pressure, no obligation… just free guidance without a catch.
If you’re in the pre-foreclosure stage… you’ve still got time to fix this situation.
Just connect with your bank to see if they’re willing to work with you… or contact us if you’d like to see what we can buy your house for or to tap into our free foreclosure foreclosure resources.