So what is a Pre-foreclosure in Minneapolis MN anyway?
Many homeowners within Minneapolis MN are facing difficulties when it comes to making their monthly mortgage payments.
For these cases, when a homeowner misses 3-6 months of mortgage payments, the lending institution will issue a warning. This will notifying the homeowner to either catch up with their mortgage payments or lose their home. This period is known as “pre-foreclosure.”
Banks and mortgage lenders typically provide three months for a home owner to catch up on their payments during this period. Of course, this number can vary by bank and situation.
If a homeowner fails to make the necessary payments, the bank will foreclose on the home. They will assume 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 that will help them prevent the loss of their home.
Pre-foreclosure Options for Borrowers
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.
Here are some 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 loan agreement. This will allow you to receive lower monthly payments. Check with your local Minneapolis 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 in Minneapolis like us at FastPath Home Buyers. This can give you cash fast, that you will then be able to use to pay off the months of back-payments owed. With us here at FastPath Home Buyers, we *may* even be able to work out an agreement with your lender that will relieve all, or part, of your mortgage payments.We can buy your Minneapolis MN area home. You won’t have to worry about trying to find a Buyer. WE ARE YOUR BUYER! Contact us now ( either by filling out the short form at the bottom of the page or by calling us at (612) 351-2384) to get an all cash offer that we are prepared to close on in as little as 7 days.
- 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. However, in some cases of a short sale, you may still be required to pay the difference to the bank if the house doesn’t sell for what was originally owed.
- You may be able to declare bankruptcy, which can buy you time to pay your debt. However, Bankruptcy will remain on your credit report for years. This can also cause significant damage to your financial future.
Lenders are very much aware of the widespread financial troubles across the country. Due to this, they are usually willing to work with borrowers a lot of the time.
If you’re honest and communicate well with your lender, you’ll often find that may still have a few options. Some of these could even allow you to remain in your home, or at least salvage your credit rating.
A foreclosure can often negatively affect your credit score by 200-400 points. This can prevent you from obtaining a loan of any sort for 5-7 years, so be very dutiful if you’ve received a Notice of Default from your lender.
But if you’re not able to find a solution by working directly with your lender… connect with us. We may be able to help.
Ways We Can Help If You’re In Pre-Foreclosure
- We can potentially help with a short sale – Submit your info on this website so we can evaluate your situation and see if we can help.
- We can buy your Minneapolis area house – We buy houses in Minneapolis. We would love to make you an all-cash offer on your house too. Just fill out the form here to get started >>
- You can ask us questions and we can provide you FREE guidance and resources, so that you can make a well educated decision. This costs you nothing, there’s absolutely no pressure, no obligation… just free guidance without a catch.
If you’re in the pre-foreclosure stage… there is still time to fix your situation.
Just connect with your bank and see if they are willing to work with you… or contact us if you’d like to see what we can buy your house for, or to tap into our free foreclosure resources.