It’s vital for both buyers and mortgage holders to understand the process of foreclosure due to the millions of homes across the country entering the process.
So what is a pre-foreclosure in Austin anyway?
Many homeowners across America and Austin are having a hard time making their monthly mortgage payments.
If a homeowner misses 3-6 months of payments, the lending institution will issue a warning, notifying the homeowner to pay or lose their home. This is known as “pre-foreclosure.”
Banks and mortgage lenders usually give the homeowner three months to catch-up on their payments. This number can vary by bank or by situation.
If a homeowner fails to become current on payments, the bank will foreclose on the home, assume ownership, and evict the homeowner. Fortunately, during this part of the process, a mortgage holder has an opportunity to utilize a few options to prevent the loss of their home.
Pre-foreclosure Options for Borrowers
You’re likely to receive a “notice of default” from your mortgage lender if you’re behind on payments.
This document will state that you have not made mortgage payments for the last 90-180 days. Do not panic.
You have options that can delay or even prevent losing your home:
- If your mortgage is “above water,” (you have equity in your house) you may be able to refinance your mortgage and receive lower monthly payments. Check with your local Austin mortgage broker or contact us and we can connect you with a reputable one.
- You may be able to quickly sell your home to a reputable real estate investor in Austin like us at Austin Direct Home Buyers. You can use the cash from the sale catch up on payments. (Or, you can contact us and we *may* be able to work with the lender to relieve all or part of your back-payments.) We can buy your Austin, TX area home fast, often in a week or two, will pay in cash, and take the stress out 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 as a tax write-off. In some cases, you may 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 may buy you time to pay off your debt. Bankruptcy will remain on your credit report for years, and can cause significant damage.
Lenders extremely aware of the widespread financial troubles across the country and are willing to work with borrowers most of the time.
If you’re honest and communicate well with your lender, you’ll often find that you have options that will allow you to remain in your home, or at least salvage your credit rating.
Usually, a foreclosure will negatively affect your credit score by 200-400 points. This can prevent you from obtaining any sort of loan for 5-7 years, so be very compliant if you’ve received a Notice of Default from your lender.
If you’re not able to find a solution by working directly with your lender, connect with us. We may be able to help.
Ways We Can Help If You’re In Pre-Foreclosure
- We can potentially help with a short sale – Submit your info on this website so we can evaluate your situation to see if we can help.
- We can buy your Austin area house – We buy houses in Austin and would love to make you an all-cash offer on your house too. 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, and no obligation. Just free guidance without a catch.
If you’re in the pre-foreclosure stage, you still have time to fix the situation.
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 offer for your house, or to tap into our free foreclosure foreclosure resources.
Want To Discuss Your Pre-Foreclosure Options? Call Us at (888) 284-9001
Or, Submit Your Info Here To Get A Cash Offer On Your House >>
Check out these blog entries we have posted on Avoiding Foreclosure:
- Relief from Being Behind on Property Taxes in Austin
- Can I give my house in Austin back to the bank without an expensive foreclosure?
- Foreclosure Prevention Measures In Austin and the rest of TX
- The Devastating Consequences Of Foreclosure In Austin For House Sellers
- Help For Foreclosure In Austin – 3 Ways To Avoid Foreclosure
- Can You Get Your House In Austin Back After Foreclosure?
- Foreclosure notice of default in TX– what is it?
- How to Avoid Foreclosure in Austin