So many Americans are dealing with foreclosure across the country. As local homebuyers in Cleveland, we have experienced multiple homeowners going through this situation. With the expiration of Covid-relief help, the numbers are beginning to climb. We wrote this article to help homeowners understand exactly what pre-foreclosure is, and the next steps they can take to protect themselves emotionally and financially.
What Exactly Is Pre-Foreclosure In Cleveland?
When you fall 3-5 months behind on your mortgage payments, your lender will usually issue a letter (or warning) that simply states you either need to pay, or you run the risk of losing your house. When you receive this letter, you are entering into what is known as the pre-foreclosure period.
It normally takes around three months to receive this letter, but each lending institution handles this differently. If the homeowner continues to miss their payments, they will be placed into foreclosure, and eventually evicted from their home.
Quick Tip: Although this is an extremely stressful time, the lender is giving you a chance to take action by issuing this warning.
What Are Your Pre-Foreclosure Options
By now, homeowners have probably been issued their “notice of default” letter from their lender. Again, this is simply a letter that lets you know that the lender has not received any payments from you over the last 3-5 months.
After receiving this letter, it’s time to formulate a game plan so that you can move forward. Keep in mind, it is extremely important not to panic and ignore these notices. Although these notices are worrisome, they protect you by giving you a “heads up.”
If You Have Equity In The Home – equity means that your house is worth more than you owe on it. And if this is the case, you may be able to refinance your house. A refinance can help you lower your monthly mortgage payments and save you money in the future as well. You should contact your current lender to see if this could be a viable option for you.
Short Sale – If you don’t have equity in your home, you could consider asking your lender about a short sale. Your lender must approve a short sale because you are essentially selling the house for less than is owed. Lenders handle these differently and it is important you discuss this in depth with your lender. Some lenders require you to pay the difference in the sales price and the mortgage balance.
Declare Bankruptcy – Bankruptcy is normally a last resort type option, but it is still an option you should consider. Bankruptcy can help give you time to pay your debt and provide financial relief. If this is something you may explore, it is best to contact a licensed attorney to help you through this process.
Sell Your House To A Cleveland Homebuyer – If selling your house fast appears to be your go to option, research local homebuyers in Cleveland. You will want to make sure the homebuying company is legitimate, and they are a cash buyer. Cash sales are much faster than a traditional financed sale.
Your lender does not want your Cleveland home. Most financial institutions lose a lot of money when they foreclose on a property. They just want you to pay your mortgage. The most important thing you can do in this situation is to work with and communicate frequently with your lender. Your lender is always your best and most trusted resource when you are in pre-foreclosure.
We Buy Houses In Cleveland TN
Short Sale – We have experience in buying homes on a short sale. If this is an option that you have explored with your lender, we would love to help.
Local Homebuyer In Cleveland TN – We buy houses in Cleveland and we are local to the area.
Questions And Advice- We always offer free guidance and advice. If you simply need to ask us a few questions, we would be glad to help, 100% free of charge.
We are one of Cleveland’s most trusted homebuyers and we work to make selling your home fast and easy. We also buy every home as-is, meaning you will not be responsible for making repairs, cleaning, or any other thing that may kill time. Since we are cash homebuyers, we can drastically speed up the process of getting your home sold fast.
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