Millions of Homeowners in Kansas City and in the entire United Estates are going through foreclosure. This is why it is very important that both the mortgage holders and buyers have a proper understanding of the foreclosure process.
But, what does pre-foreclosure really means in Kansas City?
It can’t be denied that a lot of homeowners across the country are having difficulties paying their monthly mortgage. As a homeowner, if ever you failed to pay the mortgage payments for 3 to 6 months, you will be able to receive a warning letter from the lending institution, notifying you that if you can’t be able to pay your outstanding mortgage payments, you will be at risk of losing your home. This period is now what you call the “pre-foreclosure”.
In general, mortgage lenders and banks give homeowners time for them to become current. The usual time given can be as much as three months depending on the situation and the banks. If ever the homeowner still failed to pay for the necessary mortgage amount after the said grace period, the bank will automatically foreclose the property. This is the time when they assume ownership over the property and they have the sole authority to evict the homeowner.
But it does not always mean that if a mortgage holder is already going through a foreclosure process, it is already the end of the story. There are a number of things that mortgage holders can do to avoid losing their home.
Pre-foreclosure Options for Mortgage Holders
If you were not able to make the mortgage payment for a certain period, your mortgage lender will likely to issue a notice of default. This notice will most certainly remind you that you have not paid your mortgage responsibility for the 90-180 days. It will also be stated in the notice that you are deemed to lose your property if you can’t make the necessary payments.
If you have received this kind of notice, remember not to panic immediately because you still have the opportunity to delay or even avoid losing your home.
Refinancing of Above Water Mortgage
If you still have equity in your property, commonly referred to as above water mortgage, you have the option to refinance your mortgage. If this happens, you can be able to receive lower monthly payments.
For further details, you can contact your local mortgage broker or give us a call. We can help you find a reputable mortgage broker who can assist you with this.
Sell Your House Fast
One other way to prevent losing your home is to sell it to a reputable real estate investor in Kansas City like SellMyHouseKC. We buy houses in Kansas City and close as fast as a week or two. And we also pay in cash according to what is agreed upon. You can use the cash in securing your pending mortgage payments.
Another option is to call your bank and ask permission for a short sale. This means that you will be selling your house at a lower price than its actual worth. The loss will be taken by your bank and will be considered as a tax write-off.
If you declare bankruptcy, you can be able to delay the foreclosure process. This means that you will have additional time to pay off your debt. Just be reminded that if you declare bankruptcy, your credit record may be at risk of significant damage because your bankruptcy record will remain for a couple of years.
Mortgage lenders are well aware of the ongoing widespread financial problems in the country. And they are also more than willing to work with homeowners and help them salvage their credit record or keep their home. Just be honest with your mortgage lender and remember to communicate with them so you will have ideas about your options.
Truly, a foreclosure can decrease your credit score by around 200-400 points and it can also hinder you from getting another loan for the next 5 to 7 years. If your lender can no longer help you with your problem, you may contact us. We may be able to help you.
How Can We Help You?
Here are a few ways we can help you during pre-foreclosure.
If you are considering a short sale, you may connect with us. We can look into your situation and see what help we can offer.
House For Sale
We buy houses in Kansas City area in any condition. If you want to sell your house fast and you need instant cash, you may give us a call or fill out our inquiry form and submit your property details to us.
Free Foreclosure Resources and Guidance
We can offer you with free foreclosure resources and guidance. You can also ask our experts about your problem so you will know your best options. Do not worry about the fee as we are offering our expertise for free… no obligation and no pressure.
If you already received your notice of default and you are already on the stage of pre-foreclosure, do not waste time and act right away while you still have the chance to resolve your problem.