Amid the widespread foreclosure of millions of homes across the country, it is crucial for both mortgage holders and buyers to be well-versed in the foreclosure process.
So what is a pre-foreclosure in Belleville anyway?
A significant number of homeowners in America and Belleville are currently experiencing challenges in keeping up with their monthly mortgage payments. In the event that a homeowner misses 3-6 months of mortgage payments, the lending institution will issue a warning, commonly known as “pre-foreclosure,” which notifies the homeowner that they must pay or risk losing their home. Banks and mortgage lenders usually allow three months for the homeowner to catch up on their payments, though this timeline may vary depending on the bank and specific circumstances. If the homeowner is unable to make the necessary payments, the bank will foreclose on the home, take ownership, and proceed to evict the homeowner. However, during this stage of the foreclosure process, the mortgage holder can explore various options to prevent losing their home.
Pre-foreclosure Options for Borrowers
When you fall behind on your mortgage payments, it’s probable that your mortgage lender will send you a “notice of default.”
This documentation will declare that you have not fulfilled your mortgage payments for the past 90-180 days. It’s crucial not to become overwhelmed.
If you’re facing the possibility of losing your home, there are options available to you that could delay or even prevent it from happening:
- If you have equity in your house, you may be able to refinance your mortgage and obtain lower monthly payments. You can check with a local Belleville mortgage broker, or contact us and we can refer you to a trustworthy one.
- You may be able to sell your home quickly to a reputable real estate investor in Belleville, such as Cardinal Creek Properties. You can use the cash received from the sale to pay off your missed payments, or we may be able to work out an arrangement with the lender that relieves some or all of your debt. We can purchase your Belleville, IL area home rapidly, often within a week or two, pay in cash, and take the stress out of finding a buyer.
- Another alternative is to get in touch with your bank and seek permission for a short sale. In a short sale, you will sell your property for less than its market value, and the bank will claim the loss as a tax write-off. However, in some instances of short sales, you may still be liable for paying the difference to the bank if the house does not sell for the amount owed on the loan.
- You could file for bankruptcy, which can buy you time to pay off your debt. However, bankruptcy will remain on your credit report for years and can cause significant damage.
With the widespread financial difficulties experienced across the nation, lenders are often willing to cooperate with borrowers.
Being transparent and maintaining open communication with your lender can uncover options that allow you to either retain your home or salvage your credit rating.
Receiving a foreclosure notice can often lead to a negative impact on your credit score of 200-400 points and may prevent you from acquiring any type of loan for 5-7 years. Thus, it’s essential to be diligent if you receive a Notice of Default from your lender.
If working directly with your lender doesn’t yield a solution, feel free to connect with us. We may be able to offer assistance.
Ways We Can Help If You’re In Pre-Foreclosure
- We may be able to assist with a short sale – Please provide your information on this website so that we can assess your circumstances and determine whether we can be of help.
- We purchase houses in the Belleville region and would be delighted to provide you with an all-cash proposal for your property. To begin, simply complete the form here >>
- You can inquire with us for free advice and resources to help you make an informed decision. There are no charges, no pressure, and no obligation. You’ll receive unbiased assistance at no cost.
If you find yourself in the pre-foreclosure stage, don’t lose hope because there’s still time to resolve the situation.
Firstly, you can communicate with your bank to see if they’re willing to collaborate with you. Alternatively, you can contact us to learn about the possibility of selling your house to us, or to utilize our foreclosure resources that are free of charge.
Looking to sell your house fast in Belleville? If you’re dealing with pre-foreclosure, we may be able to help you find a solution.
Contact us at (314) 467-8137 to discuss your options or submit your information here to receive a cash offer for your house. We buy houses in Belleville and can help you navigate the pre-foreclosure process.