Understanding Pre-Foreclosure in Raleigh, NC
As the United States faces a rising number of foreclosures, homeowners in Raleigh, NC need to comprehend the process to avoid losing their homes. A pre-foreclosure occurs when a homeowner fails to make their mortgage payments for 3-6 months, and the lending institution issues a warning, notifying the homeowner to pay or lose their home.
Typically, banks and mortgage lenders provide three months for the homeowner to become current, though this number can vary. However, if the homeowner fails to make the necessary payments, the bank will foreclose on the home, assume ownership, and evict the homeowner. During this pre-foreclosure stage, a mortgage holder can take advantage of several options to prevent losing their home.
If you’re behind on mortgage payments, you’re likely to receive a “notice of default” from your mortgage lender, indicating that you have not made mortgage payments for the last 90-180 days. However, you have options that can delay or even prevent losing your home:
- Refinance your mortgage: 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. You can check with a reputable mortgage broker in Raleigh or contact Kev Buys Houses to connect you with one.
- Sell your home to a real estate investor: You may be able to quickly sell your home to a reputable real estate investor like Kev Buys Houses , using the cash acquired to pay the months of back-payments owed. We can buy your Raleigh, NC 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.
- Short sale: 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. However, 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.
- Declare bankruptcy: You may be able to declare bankruptcy, which can buy you time to pay your debt. However, bankruptcy will remain on your credit report for years and can cause significant damage.
Lenders are willing to work with borrowers during these trying times, and 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 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 if you’ve received a Notice of Default from your lender, take it seriously. However, if you’re unable to find a solution with your lender, you can contact Kev Buys Houses for help.
If you’re in the pre-foreclosure stage, you still have time to fix this situation. You can connect with your bank to see if they’re willing to work with you or contact Kev Buys Houses to see what they can do for you. They can potentially help with a short sale, buy your Raleigh, NC area house, or provide you with free guidance and resources so you can make an informed decision. Remember, there’s no obligation or pressure; just free guidance to help you during this difficult time.