What is a Pre-Foreclosure in Salt Lake City?

As millions of properties across the USA go into foreclosure, it is valuable for home buyers and those with home loans to be familiar with the process.

So what is a pre-foreclosure anyway?

Across America and Salt Lake City, homeowners are struggling to keep up with their mortgage payments.

Once a homeowner goes 3-6 months without making their mortgage payment, their mortgage lender will issue them a warning notifying them that failure to pay will result in the loss of their home. This warning period is called “pre-foreclosure.”

Mortgage lenders and banks usually allow three months for the borrower to get current with their payments. Although, this length of time can vary by lender depending on the situation.

Upon a homeowner failing to make the required payments, the lender will foreclose on the property, assume ownership, and remove the homeowner from the home. Thankfully, however, mortgage holders have the opportunity to take advantage of some options during this process in order to prevent giving up their home.

Pre-foreclosure Options for Struggling Borrowers

If you’ve become late on your home loan payments, you’ll most likely encounter a “notice of default” from your home loan provider.

This notice of default will inform you that you’ve failed to make your payments for the previous 90-180 days. But, it’s important that you remain focused and calm.

There are options available to you in order to delay or prevent the loss of your house:

  • If your home loan is “above water,” (you retain equity in your home) it’s possible that you can refinance your loan, thereby switching to lower payments each month. Ask your local Salt Lake City mortgage lender… or contact us and we can get you in touch with one that is reputable.
  • You might have the ability to sell your home to a real estate investor who is reputable in Salt Lake City such as us, Property Seller Solutions, in order to use the money received to pay the remainder of loan back-payments. We *may* also have the ability to work out a deal with your lender where some or all of the back payments owed are forgiven. We can buy your Salt Lake City UT area home very quickly, in many cases, this takes just one week or two. We pay in cash and you won’t have the stress of trying to find a buyer.
  • You have the option of contacting the lender and asking them to allow a short sale. A short sale is when you sell your property for less than it’s worth and the lender takes a loss as a tax write-off. Sometimes you might still be obligated to pay the difference to the lender if your property sells for less than the amount owed.
  • Declaring bankruptcy may be an option. Taking this option would allow you time to repay your debt. However, a bankruptcy will stay on your credit history for some years and can cause damage.

Mortgage lenders are very aware of the large number of people across the country who are going through financial struggles and so are often willing to work with borrowers.

If you choose to honestly communicate with your bank, you’ll likely find ways that will help prevent you losing your home, or at least saving your credit report from disaster.

Foreclosures can have a detrimental effect on your credit score – often by 200-400 points. They can prohibit you from obtaining a loan of any kind for 5-7 years. So, be very responsible if your lender has sent you a Notice of Default.

However, if you’re unable to come to a workable solution by contacting your lender, get in touch with us. We might be able to help.

Ways We Are Able To Help If You’re In Pre-Foreclosure

  • We may be able to assist you in a short sale – Submit your information to us here on our website so that we can determine if we’re able to help you.
  • Let us buy your Salt Lake City house We buy homes in Salt Lake City and would love to make a cash offer on your home, too. Simply fill out this form to get started >>
  • Let us answer your questions and provide you with FREE assistance and valuable resources so that you might make an informed decision. This won’t cost you anything, there is no pressure or obligation… simply some free guidance with no catch!

If you happen to be in this pre-foreclosure process, you do have time to fix your situation.

Simply contact your bank to ask if they will work with you… or get in touch with us to find out how much we can buy your home for or to get free access to our valuable foreclosure resources.

Interested In Discussing Your Pre-Foreclosure Options? Give Us A Call At (801) 876-1036

Or, Submit Your Info Here To Receive A Cash Offer On Your Home >>

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