Homeowners in El Paso facing financial difficulties may encounter a situation known as pre-foreclosure. So, what is a Pre-Foreclosure in El Paso anyway?
So, what is a pre-foreclosure in El Paso anyway?
Many homeowners across America El Paso face difficulties making their monthly mortgage payments.
After missing 3-6 rounds of mortgage payments, the lending institution issues and presents notice of intent—usually in the form of letters—to pay or lose one’s property. This timeframe is known as pre-foreclosure.
Usually, banks or mortgage lenders tend to offer a 3-month timeframe for the homeowner to make up for the arrears. Nonetheless, this grace period depends largely on the type of bank and its policy.
If at any time a homeowner cannot pay their mortgage installment, the bank takes over the house, forcing them out. Once they do that, it immediately translates into the creditor foreclosing on the mortgage because the homeowner has failed to keep up with those payments. The advantage of living in such an age is that someone can always take advantage of the options to avoid penetration into existing foundations that follow whether the mortgage owner loses the house.
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. It’s important not to panic.
You have options that can delay or even prevent losing your home:
- If your mortgage is “above water,” (meaning you have equity in your house) you may be able to refinance your mortgage, receiving lower monthly payments. Check with your local El Paso 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 real estate investor that’s reputable in El Paso like us at Move On House Buyers, using the cash acquired to pay the months of back-payments owed (or we may be able to work out something with the lender that relieves all or part of your back payments. We can buy your El Paso, Texas area home quickly, often in just a week or two, will pay in cash, and takes the stress out of trying to find a buyer.
- Get in touch with the bank and request to authorize a short sale. In a short sale, you are selling your home for less than it is worth and the bank takes a hit on the rest of the mortgage. There could be those few short sales in which defaulters still must cover the difference, in the future, only in case the subject property is sold out way below the principal sum.
- Declaring bankruptcy for some peace must be another option considered. A bankruptcy mark in credit reports might also remain for a very long time.
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 are honest and communicate with your lender, you will often discover that there are ways you can stay in your home or at least protect your credit rating.
A tract foreclosure could lower your FICO score by 200-400 points and possibly keep you from availing of any loans for five to seven years. So once you receive an official notice from your lender, you need to act very faithfully.
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.
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 El Paso area house – We buy houses in El Paso and would love to make you an all-cash offer on your house too. Just fill out the form here to get started >>
- If you desire, feel free to ask your questions so that we can inform you and assist you in making the best decisions. This does not cost you anything; you are not bound by any commitment; you have no pressure-this is just free unbiased advice without any trap.
If you’re in the pre-foreclosure stage… you’ve still got time to fix this situation. What is a Pre-Foreclosure in El Paso? It’s a critical period where you can still take action to avoid losing your home.
Contact your bank to see whether they want to help you… or call us up to see what we would be willing to pay for your house or avail yourself of our free resources on foreclosure.