Help for Homeowners in Pre Foreclosure

Pre-foreclosure is considered the first step in the foreclosure process. It comes when a homeowner fails to pay their monthly mortgage payments, and it is the state when a borrower can still reverse the default by either paying off the debt, negotiating a loan modification, or selling the property before it is foreclosed. 

How To Stop Pre-Foreclosure And Avoid Foreclosure? 

If you realize that you are late with your mortgage payments, here is what you can do in order to stop pre-foreclosure before it is too late: 

Negotiate With Your Lender

Once you are late with your first mortgage payment, you should contact your mortgage lender immediately and explain your situation. Since most lenders do not want to go through foreclosure either, they may agree to work out a repayment plan for you. You should also ask your lender about mortgage relief options. 

Conduct A Short Sale

Another option that you can consider for stopping foreclosure is selling your home. A short sale means that you are selling your property for less than what you owe on your mortgage. The lender receives the proceeds from the sale and usually forgives the remaining mortgage debt. If you think it is a good option for you, you should get permission from the lender first to sell your property. 

Sign A Deed In Lieu

A deed in lieu is the process, in which a homeowner voluntarily transfers the ownership of their property to a mortgage lender. In exchange, they are released from their mortgage obligations. It is a quick and effective method to stop the pre-foreclosure process, but there is one significant disadvantage of this method: it has a negative impact on the credit score and affects it for several years. 

Start Paying Off Your Debt

One of the best things you can do in order to get your home out of pre-foreclosure is to pay off the debt with all the penalties and late fees. If you lost your job, for example, and cannot make regular payments, most mortgage lenders will agree to stop the preforeclosure process once you start paying again. Your lender may offer you a payment plan that will help you catch up on your past due monthly payments. 

Refinance Your Home

Refinancing is the method that allows you to change the amount of money you pay every month and the length of the mortgage loan. You may end up with a long loan and affordable payments, but there can be a high-interest rate. It is one of the most popular methods for stopping the foreclosure process because you can stay in your current home. 

File For Bankruptcy

Many homeowners file for bankruptcy in order to stop collection proceedings and prevent foreclosure. However, it is important to do it before the property is foreclosed. However, you should understand that bankruptcy is a temporary remedy that just gives you some time.  It also affects the credit score and remains on the credit report for several years. 

Sell Your Home To A Cash Home Buyer

If you do not want to stay in this current home, then you should sell your house fast. One of the best ways to do it is to sell to a cash buyer.  Cash buyers purchase properties and do it quickly, so you can forget about foreclosure immediately.

If you own a property in Cincinnati and you need help with foreclosure, you should contact We Buy Houses Cincinnati. Our company is a team of professional and experienced cash home buyers who have been working with real estate for many years. Our mission is to help clients to avoid foreclosure when it’s the best option. Feel free to visit our website or call us for more information.