You may have missed a couple of payments on your house, leading to your account going into default status with your lender. They may have sent you notice after notice which you may have ignored, and now, your house is in pre-foreclosure.
What is pre-foreclosure?
Before your property goes into foreclosure, it first goes into pre-foreclosure. Pre-foreclosure means that the process of foreclosure has been initiated, and if the correct actions are not taken by the homeowner, then the property may end up being repossessed by the mortgage lender.
Once you have defaulted on your payments for way too long, your lender will prepare and file a notice of default which basically means that you have breached the contractual agreement between you and your lender by overextending the “grace period” within which you can make up for delinquent payments.
If you have received such notice from your mortgage lender, what it means is that they intend to pursue foreclosure actions on the property, and you may be better off selling it before it goes into full foreclosure.
You are better off selling a property that is already in pre-foreclosure because waiting for it to go into full foreclosure may have disastrous consequences on your creditworthiness.
Pre-foreclosure vs foreclosure
The difference between a pre-foreclosure and a foreclosure is only a matter of time. Since the proper actions have already been initiated in the case of a preforeclosure, sitting down and doing nothing about it will only make the situation snowball into a proper foreclosure.
How long does pre-foreclosure last?
A pre-foreclosure starts the moment a notice of default is issued. Usually, your mortgage lender will also notify the office of the County Recorder or file a lawsuit. Once the pre-foreclosure process has been initiated, it may take between 3 – 10 months before a house goes into full foreclosure.
Selling a home in pre-foreclosure
You may think that you are stuck and that you have no options since you have missed so many mortgage payments. What you may not realize is that selling your house is an option, and not just an option; one of the very best.
At Tgaz Investments, we buy properties that have gone into pre-foreclosure, giving both the lender and homeowner much-needed relief. Your home does not belong to your lender yet if it has only gone into pre-foreclosure, you still have the option to sell it. From this sale, you can pay back the money you owe to your lender, including any and interests and penalties that may have accrued due to late payments.
Although a quite different set of rules usually apply when we are purchasing a pre-foreclosed home, we will weigh the situation carefully and choose a sales strategy that is suited to your needs.
Additionally, we may be able to negotiate with your lender and get them to discharge your mortgage debt for less than what you owe. This is what is known as a short sale.
At Tgaz Investments LLC, providing you with a fast and reliable option to sell your house is our top priority. Get on the phone with us today at 480-848-7173, we’re waiting to hear from you.