With millions of homes across the country going into foreclosure, it’s important for both buyers and mortgage holders to understand the process. If you’re dealing with a pre foreclosure this article would be worth reading to understand the ins-and-outs of pre foreclosure, loan modifications, and short sales. Before we dive into this article, understand that working with a cash home buyer could be your best solution if you’ve found yourself in a difficult circumstances. We buy houses in Leesburg VA and all over the rest of the county. Check out our latest blog to learn more!
So What Is A Pre-Foreclosure In Leesburg VA Anyway?
Many homeowners across America and Leesburg are facing difficulties making their monthly mortgage payments.
When a homeowner misses 3-6 months of mortgage payments, the lending institution will issue a warning, notifying the homeowner to pay or lose their home. This period is known as “pre-foreclosure.”
Banks and mortgage lenders typically provide three months for the homeowner to become current. Of course this number can vary by bank and situation sometimes.
If a homeowner fails to make the necessary payments, 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 In Virginia
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. It’s important not to panic.
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 refinance your mortgage, receiving lower monthly payments. Check with your local Leesburg 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 Leesburg like us at The House Guys, 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 Leesburg DC 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. 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. 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.
- You may be able to declare bankruptcy, which can buy you time to pay your debt. Bankruptcy will remain on your credit report for years, and can cause significant damage.
Lenders are very much aware of the widespread financial troubles across the country and they’re willing to work with borrowers a lot of the time.
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.
If you’re unable to avoid foreclosure, the negative effects can often lower 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 Foreclosure 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 In VA
1) We can potentially help with a short sale – Submit your info on this website so we can evaluate your situation to see if we can help.
2) We can buy your Leesburg house – We buy houses in Leesburg and would love to make you an all-cash offer on your house too.
3) You can ask us ANY 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 House Guys Provide A Simpler Solution
If you think you need to sell your house in Virginia fast, then you may need an investor. The House Guys are local homebuyers in Leesburg and we’re helping local homeowners solve their housing problems quick and hassle-free. We buy houses in Virginia and if your house in Leesburg qualifies, we can make you a quick and fair cash offer.