Millions of homes across the country going into foreclosure and Savannah is no different. It’s important for homeowners to understand what is a pre-foreclosure and what is the process they can use to stop foreclosure.
So What is a Pre-Foreclosure in Savannah Anyway?
You may be one of the many homeowners across [markety_state] and Savannah that is facing difficulties making your monthly mortgage payments.
When a homeowner misses 3-6 months of mortgage payments, the mortgage lender will issue a warning, notifying the homeowner that they need to pay up or lose their home. This period is known as “pre-foreclosure.”
Banks and mortgage lenders typically provide three months for the homeowner to become current. How long you get to become current on your loan depends on your mortgage lender and your situation. As soon as you know you will have trouble making your mortgage payments, you need to contact them directly to see how your situation will play out.
If a homeowner fails to make the necessary payments, the bank will foreclose on the home, taking ownership, and evicting the homeowner. Thankfully, during this stage of the foreclosure process, a homeowner 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, and it’s your official notice that the bank has started the foreclosure process. It’s important not to panic.
You have options that can delay or even prevent losing your home:
- If you have equity in your house (a.k.a. your mortgage is above water) you may be able to refinance your mortgage, receiving lower monthly payments. Check with your local Savannah mortgage broker or contact us and we can help connect you with a reputable one.
- You may be able to quickly sell your house to a real estate investor that’s reputable in Savannah like us at Cash Homes Savannah, using money from the sale to pay the back-payments. We also may be able to work out an agreement with the lender that relieves all or part of your back payments. We can buy your Savannah area house quickly, often in just a week or two paying cash meaning, you won’t have to deal with the stress 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. 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. Bankruptcy will remain on your credit report for years and can cause significant damage. Of all the options, this should be your last resort as it can have a significant and lasting impact on your life.
Lenders are very much aware of the widespread financial troubles across the country and they’re willing to work with borrowers a lot of the time.
If you’re honest and communicate early and often with your lender, you’ll often find that there are options that will allow you to remain in your home, or at least save your credit score.
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.
But 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.
How Cash Homes Savannah Can Help If You’re In Pre-Foreclosure
- We can potentially help with a short sale – Submit your info on the form at the bottom of this page so we can evaluate your situation to see how we can help.
- We can buy your Savannah area house – We buy houses in Savannah 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 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 process, you’ve still got time to fix this situation and stop foreclosure.
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 resources.