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Selling a Home in Pre-Foreclosure
Pre-foreclosure: the first step in the process of foreclosure. Facing foreclosure is probably one of the scariest experiences a homeowner can endure. Pre-foreclosure typically occurs when the homeowner is at least three months delinquent. It is also important to note that pre-foreclosure does not always mean that the Killeen homeowner will lose their property. They can keep the property if they successfully pay the debt off.
What Should You Do?
Here is a list of options you can choose from to address a pre-foreclosure.
Modify the Loan
An action that prevents a property from being foreclosed is called a loan modification. A loan modification is a perfect option for those who are struggling with regular monthly payments.
One of the most common types of loan modification is extending the loan length, providing the homeowner with more time to pay off the loan. Sometimes, this also allows the lender to lower the rate.
Negotiate With the Lender
If you are a Killeen homeowner or Bell County homeowner and are late with your payments, one of the first necessary actions is to speak with your lender. The lender may be willing to provide you with a unique repayment plan so you can continue making regular payments. Most lenders are open to negotiations because they also want to avoid foreclosure.
Pay the Remaining Balance
After the homeowner pays the remaining balance, the process of pre-foreclosure will stop. If you cannot pay the remaining balance, we recommend contacting your lender to discuss it.
Consider a Deed in Lieu
A deed in lieu is a voluntary agreement between you (as an owner) and your lender. The homeowner voluntarily transfers the title to the property back to the lender in exchange for releasing the mortgage. Both sides must enter this agreement freely. For this reason, some lenders dislike this option.
Think About Refinancing
Refinancing is when the homeowner pays off their current loan with the proceeds from a new loan. You can acquire refinancing either through your current lender or through someone else. Refinancing is a great option, and many couples and families have used it. However, several things should be considered, including the type of home and the current status of your mortgage.
Conduct a Short Sale
If attempts at loan modification and refinancing were unsuccessful, a short sale might be the best option. A short sale is when the homeowner sells the property for less than they owe on the mortgage. In many cases, it is a private transaction between the homeowner and the buyer, but it must be approved by the bank first before being completed. When talking about a short sale, it is crucial to understand that even though it is an effective way to stop pre-foreclosure and avoid foreclosure, it significantly harms your credit score.
Sell the Property to a Cash Home Buyer
Another effective way to stop pre-foreclosure and stop foreclosure is to sell your house fast to a cash home buyer. Cash buyers purchase all types of properties and pay cash. They do not care about the properties’ condition, location, or age, and you can close the deal within two weeks and receive cash.
If you are searching for a reliable and trustworthy home investment company in Killeen, TX, or nearby areas, you should contact We Buy Killeen Houses. We buy houses immediately to help homeowners avoid foreclosure. If you have any questions or want to get more information about the process, feel free to contact us.
