A pre-foreclosure refers to a situation when the homeowner hasn’t made any mortgage payments in the last 90 days. Although the property is in the process of foreclosure, it is still in possession of the owner. The bank sends a notice about the default and informing them about legal action if the debt is not repaid. At this stage, you have a few options. This includes:
• Speak To The Lender:
Lenders are willing to work with homeowners who cannot pay off their debt but are willing to do something about it. You could negotiate with them about a loan re-modification or request them to suspend the loan temporarily. Some people obtain an additional mortgage or sell off other assets to repay the loan.
• Short Sale:
A short sale refers to the sale of a home for an amount that’s less than owed. The lender gets a portion of their mortgage repaid, while the rest of the loan is closed. But a major part of this agreement depends on the bank approving a short loan, which is now a rare affair. When compared to foreclosures, a short sale is preferable, but your credit rating does take a hit and affects lending terms on future loans.
•Selling To A House Flipper:
‘But how do I sell a foreclosed home!’ This is one of the easiest solutions because you not only avoid damaging your credit score but also get a chance to start afresh. Another advantage of selling your home to a house flipper is that you don’t have to waste time on foreclosure and other lengthy procedures. From start to end, the entire sale process does not last for more than two weeks. Getting out of the mortgage is far easier with us! At Metro Milwaukee Home Buyer, we buy houses for cash and promise a stress-free sale. All you have to do is to call us and fill in the contact form – we’ll come over to your place and make an offer. If you agree, we’ll buy the house and even pay for the closing.