Did you know that millions of homes across the country are still going into foreclosure?
Therefore, it is extremely important that both mortgage holders and buyers understand the process of foreclosure and are proactive about it.
So what is a pre-foreclosure in Dallas anyway?
Times have been difficult and challenging for many of us. Even though this pandemic has been going on for almost 2 years now, many homeowners across America and Dallas are still facing difficulties paying their monthly mortgage.
However there are certain steps that happen within the process that we will explain below.
The bank or any other lending institution will issue a warning, notifying the homeowner to either pay or lose their home, if the home owner missed 3-6 months of mortgage payments. This time period is known as “pre-foreclosure.”
The short time frame of three months is a grace period where banks and mortgage lenders typically allow the homeowner to become current with their payments. Of course this number can vary by bank and situation sometimes.
If a homeowner fails to make the necessary payments within the given time frame, 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.
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.
DO NOT PANIC!!!!
One of the most important task for you is not to panic, there is always a way out!
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 receive lower monthly payments when you refinance your mortgage. Therefore call and check with your local Dallas 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 Dallas like us at Higher Home Buyer, 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 Dallas TX 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.
- You can contact the bank and ask them to permit a short sale. What does this mean: A short sale means that you’ll sell your home back to the bank for less than it’s worth, and the bank will take the loss as a tax write-off. However, depending on your situation 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. It always depends on your bank and your situation.
- You may be able to declare bankruptcy, which can buy you time to pay your debt. However, keep in mind that bankruptcy will remain on your credit report for years, and can cause significant damage. So you might want to leave this as your last resort.
The good news are, that many lenders are very much aware of the widespread financial troubles across the country and they’re willing to work with many homeowners to find a suitable solution with you.
You’ll often find that there are options that will allow you to remain in your home, or at least salvage your credit rating, if you’re honest and communicate with your lender.
Please be aware that a foreclosure can often negatively affect your credit score by 200-400 points and can prevent you from obtaining a loan of any sort for 5-7 years, so be very dutiful if you’ve received a Notice of Default from your lender.
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 – Once you submited your info on this website we will start our evaluation right away and see if and how we can help.
- We can buy your Dallas area house – We buy houses in Dallas 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. The more people we help the more referrals we get and that is what we are striving for.
So, just remember if you’re in the pre-foreclosure stage… you’ve still got time to fix this situation, but you need to take actions fast.
Just connect with your bank to see if they’re willing to work with you… or contact us if you’d like to see what we can buy your house for or to tap into our free foreclosure foreclosure resources.
Want To Discuss Your Pre-Foreclosure Options? Call Us at (214) 225 - 9225
Or, Submit Your Info Here To Get A Cash Offer On Your House >>
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