What is Preforeclosure?
Preforeclosure isn’t an official state. Rather, every bank has a process it goes through before it forecloses on a property. Some banks are rigorous. They go into foreclosure almost immediately after a homeowner is late. Others are more forgiving, so it can take years to go into foreclosure. Regardless, if you’re in preforeclosure, you’re in a precarious position.
What Exactly is Preforeclosure?
Preforeclosure occurs when you can be foreclosed on (you have been late enough that your bank is allowed to foreclose on you), but your bank has not gone through the steps of foreclosing on your property. In many areas, you can be foreclosed on once you are 60 days late with your bank. Some banks also have the right to sell — rather than go through foreclosure, they have the right to sell your property when you are late.
But there are certain things the bank has to do; they need to notify you of their intent to foreclose, for one. And in any situation, you can always stop foreclosure by paying the amount due. The problem is that this amount will continue to rise. It includes not only the balance of the mortgage, but also things like legal fees, late fees, and administrative fees.
How Can You Stall Foreclosure?
If you’re in preforeclosure, you have to act fast. You can be foreclosed on at any time. When foreclosed on, your house will be sold. Once your house has been successfully sold, the foreclosure will be complete, and you will not be able to get it back (without repurchasing it from the buyer).
There are ways to stall foreclosure:
- You can come to an agreement with the bank. They may re-age your loan, so you’re no longer late (but your loan will take longer to pay off). They may be able to offer you a short sale, so you can sell your property “short” of the amount you owe them. Or they may just be able to give you more time. Communication is important. The bank can’t give you a deal if you don’t talk to them.
- You can declare bankruptcy. This is just a stopgap, but it does work. During bankruptcy, the foreclosure process will be halted. But you’ll have to go through bankruptcy, which can be equally hard on your credit, if not more so.
- You can sell your house.
For most people, the last is the best solution. If you’re going into foreclosure, it’s likely you can’t afford your home. Selling the property before the bank does will save you a significant amount of fees, in addition to protecting your credit.
How Can You Sell Your House Fast?
Of course, if you’re being foreclosed on, it’s likely you don’t really have the time or extra money to fix up your house or to contact a real estate agent and start showings.
Luckily, you don’t have to.
With a cash home buyer like Terra Home Solutions, you can sell your house for cash right away. Terra Home Solutions can make an offer on your property and pay you cash for it within days rather than weeks, so you can pay down your mortgage and likely walk away with some extra money to spare.
You don’t need to repair your home, make renovations, or invest anything at all; Terra Home Solutions buys homes in and around Houston as is. And because you don’t need to engage a realtor, you don’t pay a lot of money in real estate fees.
Do you need to sell your house fast? Whatever your situation, Terra Home Solutions can help. We purchase old homes, damaged homes, and homes in any other condition. Contact us today to get your offer.