With millions of homes nationwide entering foreclosure, it’s crucial for both buyers and mortgage holders to grasp the process.
So, what exactly is a pre-foreclosure in Jacksonville?
Many homeowners in Jacksonville and across the country are struggling to make their monthly mortgage payments. When a homeowner misses 3-6 months of payments, the lender will issue a warning, notifying the homeowner to pay up or risk losing their home. This period is known as “pre-foreclosure.”
Typically, banks and mortgage lenders give homeowners about three months to get current on their payments, though this can vary depending on the bank and the situation.
If the homeowner fails to catch up on payments, the bank will foreclose on the home, taking ownership and evicting the homeowner. Fortunately, during the pre-foreclosure stage, homeowners have several options to avoid losing their homes.
Options for Borrowers in Pre-Foreclosure
If you’re behind on mortgage payments, you’ll likely receive a “notice of default” from your lender, indicating that you haven’t made payments for 90-180 days. It’s crucial not to panic because you still have options to delay or even prevent foreclosure:
- Refinance: If your mortgage has equity, you might be able to refinance, resulting in lower monthly payments. Check with a local Jacksonville mortgage broker or contact us for a reputable recommendation.
- Sell to a Real Estate Investor: You can quickly sell your home to a reputable real estate investor like Coastal NC Cash Offer. We can buy your Jacksonville home fast, often within a week or two, for cash, helping you cover back payments or potentially negotiating with the lender to relieve some or all of your debt.
- Short Sale: Request the bank to allow a short sale, where you sell your home for less than it’s worth, and the bank takes the loss as a tax write-off. Be aware that in some short sales, you may still owe the difference between the sale price and the loan balance.
- Bankruptcy: Declaring bankruptcy can buy you time to pay your debt, though it will severely impact your credit score for years.
Lenders understand the widespread financial challenges and are often willing to work with borrowers. Honest communication with your lender can reveal options to help you stay in your home or at least protect your credit rating.
A foreclosure can drastically drop your credit score by 200-400 points and prevent you from getting loans for 5-7 years. If you’ve received a Notice of Default, act swiftly.
If you’re struggling to resolve the issue directly with your lender, we might be able to help.
How We Can Assist If You’re in Pre-Foreclosure
- Short Sale Assistance: Submit your information on our website, and we’ll evaluate your situation to see if a short sale is a viable option.
- Buy Your Jacksonville Home: We buy houses in Jacksonville and can make you an all-cash offer. Fill out the form on our site to get started.
- Free Guidance and Resources: Ask us questions and receive free guidance to make an informed decision. There’s no cost, no pressure, and no obligation—just free advice with no catch.
If you’re in pre-foreclosure, there’s still time to fix the situation. Contact your bank to explore their willingness to work with you, or reach out to us to see what we can offer for your home or to access our free foreclosure resources.