With the expectation of many homeowners going through foreclosure in the coming months it is important to understand what that means to both sellers and buyers.
So what is a pre-foreclosure in Little Rock anyway?
People across Arkansas and Little Rock are having trouble making their mortgage payments.
When the owner of a home does not make multiple months of their mortgage payment, the lending bank will put out a notice that tells the homeowner that they need to make their payments or they will take their home. This is the point known as “pre-foreclosure.”
It is standard for the bank or lender to allow up to 3 months to make payments on what is owed. Some could be less or more depending on what institution it is.
After this time, if the payments are not made then the bank will take full ownership of the home and evict the residents. The good news in all of this is that you do have time to save your home or at least prevent the bank from foreclosing on it.
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. Keep your cool, there are solutions!
You have options that can delay or even prevent losing your home:
- If you have a fair amount of equity in your home you may be able to refinance your mortgage (especially with the rates we are seeing now). This will lower your monthly payments. Get contacted with your Little Rock mortgage broker or you can contact us and we can get your set up with one!
- You may be able to quickly sell your home to a real estate investor that’s local in Little Rock like us at Sunny Day Homes LLC. You can then use your money from the sale to pay the months of mortgage payments that you owe. We can buy your Little Rock CA area home fast, we will pay you in cash, and we will save you time and hassel of doing it on your own.
- Negotiate with the bank on 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. There will be some cases where you will be required to pay the remaining balance if the bank can’t sell the house for what you owe on the current mortgage.
- Declare bankruptcy. This will remain on your credit report for years and hurt your financial life for many years but it is a way to buy some time if you need it.
Its important to note that banks and institutions realize what is going on in the world and are aware many people are struggling to make payments. If you are open and honest with your lender then they may work with you and give you some options to consider. They prefer to keep you in the house so it is important to communicate with them that you are option to finding a common ground.
A foreclosure can decrease your credit score by hundreds of points and can prevent you from obtaining any type of financing for 5+ years. Its important to be decisive and make the right decision to prevent a foreclosure on your record.
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 walk you through the short sale process – Contact us and tell us about your situation, we will let you know if short sale is an option.
- We can buy your Little Rock area house – We buy houses in Little Rock and we can give you a fair cash offer on your property. Just fill out the form here to get started
- We are the experts, ask us questions. We are here to guide our community and provided resources so you can make a well educated decision. We do not charge for this. Let us help you out!
If you’re in the pre-foreclosure stage… you’ve still got time to fix this situation.
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.