When the housing market shifts to a buyers’ market, home prices will typically drop. Inevitably some homeowners may find themselves upside down or unable to sell their homes for the loan amount. This causes defaults and foreclosures.
The three phases of the foreclosure process are:
1) Pre-foreclosure – Short Sales
2) Public Auction – Foreclosures
3) Post Foreclosure – REO’s
The timeline for pre-foreclosure typically begins with the first missed payment. If a payment is not received or no arrangements are made 16-30 days after the first missed payment, the lender begins adding late charges. Approximately 45-60 days after the missed payments the lender will notify the homeowner that the loan is in default. Usually, the homeowner will have 30 days to send the missed payments plus late fees to avoid foreclosure. After 90-105 days, the lender will send the homeowner a Notice of Intent to Foreclose. This notices initiate the legal proceedings of foreclosure and usually made public. The home will be offered at auction after 150-415 days from the first missed payment.
If the home does not sell at auction it becomes real estate owned by the lender (REO). Then the lender will attempt to sell the home.
Pre Foreclosure Solutions
If you are in foreclosure, pre-foreclosure, or foresee an inability to pay your mortgage in the not so distant future and owe close to or more than the property’s worth, we can help you. By working with your lender to sell your home we can
- Lift stress from you immediately
- Stop the foreclosure, if possible
- Pay off your mortgage when sold
- Keep a foreclosure off your credit record when sold
Selling the house yourself with a list price to cover your mortgage may not be a reasonable option. Because your default mortgage payments greatly increase what you owe and the selling cost of your property in an already competitive market, real estate agents concentrate on other properties that do not need a short sale and are more likely to sell, and buyers look for the best deal, which cannot be your property due to the inflated price to cover your debt.
is not a reasonable option. It mostly is not a possibility due to how much you owe. With only one missed payment, your credit has possibly been damaged and deemed to be poor. If a mortgage company does say they will refinance you, they are misleading you to collect an appraisal fee and will simply waste what little time you have left. Even if you could refinance, how could you make payments higher than the payments of the loan you have now?
is a poor option as well. Your home will still be auctioned off, and you will have a foreclosure AND a bankruptcy on your record for years at least. Let us help you, but don’t delay. You may not have a lot of time. You see, your mortgage company has every right, by law, to take your home. They can ruin your credit.