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 Baltimore anyway?
Many homeowners across America and Baltimore are facing difficulties making their monthly mortgage payments. When a homeowner misses 3-6 months of mortgage payments, the lending institution will issue a warning that notifes the homeowner to pay or lose their home. This period is known as “pre-foreclosure.” Banks and mortgage lenders typically allow three months for the homeowner to become current. Of course this number can sometimes vary by bank and situation.
If a homeowner fails to make the necessary payments, the bank will foreclose on the home, assume ownership, and evict the homeowner. Thankfully during this stage of the foreclosure process a mortgage holder has the opportunity to take advantage of several options to prevent 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 the process or even prevent you from 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 Baltimore 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 Baltimore like us at Baltimore Wholesale Property, using the cash acquired to pay the months of back-payments owed. In some cases we *may* be able to work out something with the lender that relieves all or part of your back payments. We can buy your Baltimore MD area home quickly, often in just a week or two, will pay in cash, and take the stress out of trying to find a buyer.
- You can contact the bank and ask them to permit a short sale. In a short sale, you’ll sell your home for less than it’s worth, and the bank will take the loss as a tax write-off. In some short sales you may still be required to pay the difference to the bank if the house doesn’t sell for what is owed on the loan.
- You may be able to declare bankruptcy, which can buy you time to pay your debt. Be aware, though, that bankruptcy will remain on your credit report for years and can cause significant damage.
Lenders are very much aware of the widespread financial troubles across the country and a lot of the time they’re willing to work with borrowers. If you’re honest and communicate with your lender, you’ll often find that there are options that will allow you to remain in your home, or at least salvage your credit rating.
A foreclosure can often negatively affect your credit score by 200-400 points and can prevent you from obtaining a loan of any sort for 5-7 years, so be very dutiful if you’ve received a Notice of Default from your lender.
If you’re not able to find a solution with your lender working directly with them, connect with us. We may be able to help.
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 determine if we can help.
- We can buy your Baltimore area house. We buy houses in Baltimore and would love to make you an all-cash offer on your house. Just fill out the form here to get started >>
- You can ask us questions and we can provide you FREE guidance and resources needed to make a well educated decision. This costs you nothing and there’s absolutely no pressure or 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.