Homes all across the country are going into foreclosure everyday, so it’s important to understand the process.
What is pre-foreclosure in Boston anyway?
Many homeowner are struggling to make their mortgage payments each month and when a homeowner misses 3-6 months of mortgage payments, the mortgage lender will issue a warning, called a pre-foreclosure notice, notifying the homeowner to make the payments or lose their home.
Typically banks and mortgage lenders provide three months for the homeowner to bring the payments current, but this number can vary by lender and institution.
If a homeowner fails to make the necessary payments within the time allowed, the bank will foreclose on the home, assuming ownership, and evict the homeowner. Thankfully, during this stage of the foreclosure process, a mortgage holder has the opportunity to take advantage of several options to prevent losing their home.
Options for Borrowers in Pre-Foreclosure…
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 Boston 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 Boston like us at Bowlmouse Real Estate Company, 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 Boston MA area home quickly, often in just a week or two, will pay in cash for the house as-is, and takes 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 short sales you may still 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 can buy you time to pay your debt. Bankruptcy will remain on your credit report for years, and can cause significant damage.
Lenders are aware the financial trouble happens and they’re willing to work with borrowers a lot of the time.
If you’re honest and communicate with your lender, you’ll often find that there are options that will allow you to remain in your home, or at least salvage your credit rating.
A foreclosure can often negatively affect your credit score and prevent you from obtaining a loan of any sort for 5-7 years, so take action if you’ve received a Notice of Default from your lender.
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 Boston area house – We buy houses in Boston 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, no obligation… just free guidance without a catch because we love helping people.
If you’re in the pre-foreclosure stage… you’ve still got time to fix this situation.
Contact your bank to see if they’re willing to work with you… or contact us if you’d like to see how we can help.