Missed a few house payments? You’ve likely already gotten a lender notification that says your property is in preforeclosure. If you don’t take action right now, you could lose your home for good, and if your home is already up for sale, it could seriously affect the status of your sale. What should you do to deal with this problem right now? Take a look.
#1 – Understand Preforeclosure
Preforeclosure is a big term that simply means the first step in the foreclosure process, or the process by which the bank can take your home back. The idea behind this first step, though, is helping homeowners stay in their homes before they go into full on foreclosure. It happens when you fail to make at least a few house payments – typically four – and this is the point where the lender has to let you know that you’re in default. Keep in mind, though, that it is a legal process at this point.
During preforeclosure, your lender will reach out to you in multiple ways to see how they can best work with you to get payments started. Some will offer lower payments. Some will offer a delayed payment schedule. Some will restructure the terms of the loan itself.
#2 – Talk to Your Lender
Throughout preforeclosure the one step you absolutely want to take is to talk to your lender. Most banks don’t want to foreclose on a property unless they absolutely have to, and they want to work with you as much as it is possible, so don’t avoid those calls!
#3 – Consider Your Other Options
If you’re in preforeclosure, the next best thing to do is to either get caught up or consider your other options, like a loan modification. The goal here is to get the bank their money as quickly as possible, and while catching up on all of your payments may take time, it is possible that your lender will extend the repayment period. He or she may also refinance your property to help spread the payments out.
Can I Still Sell My Home?
If you’re in preforeclosure, you can absolutely still sell your home. If your Stockton home for sale has been on the market for some time, though, understand that time is of the essence once preforeclosure begins. Instead of going the traditional route, you may need to consider a short sale or work with a cash buyer like Rapido to ensure that your home is sold before the foreclosure process actually begins.