Are you currently facing the threat of foreclosure? If so, it’s important to note that you’re not the only one. These days, with millions of homes across the country going into foreclosure, it’s important for homeowners to understand what this process truly entails. And here is why…
Going through a foreclosure is not an easy thing. In fact, it can often be quite scary and have a large impact on a family’s life. From the terrible consequences foreclosures typically have on people’s lives throughout Minneapolis MN (which include destroying their credit and putting their financial future in jeopardy), they’re best avoided. But how can you even begin to find ways to avoid foreclosure if you don’t properly understand it.
Below, we are going to take a deep dive into pre-foreclosure and show you how this process typically begins for most people. For more information about foreclosure, feel free to contact us and ask either by calling (612) 351-2384 or by filling out the form at the bottom of this blog. We’d be happy to answer any questions you may have, especially if they pertain to foreclosure in Minneapolis MN.
Foreclosure Overview in Minneapolis MN
Read on to discover the intricacies of the foreclosure process in Minneapolis MN
What is Pre-Foreclosure in Minneapolis MN?
Foreclosure typically takes place when a homeowner has failed to make their regular mortgage payments for many months. In instances like this, when a homeowner misses 3-6 months’ worth of mortgage payments, the lending institution will issue a warning. This will notify the homeowner to either catch up with their mortgage payments or lose their home through foreclosure. As such, this period is known as “pre-foreclosure.”
Banks and mortgage lenders typically provide three months for a homeowner to catch up on their payments during this period. However, this number can vary by bank and situation. If a homeowner fails to make the necessary payments, the bank will foreclose on the home. Through foreclosure, they will assume ownership of the property 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. And that’s what we’re going to explore next.
Pre-Foreclosure Options for Home Owners
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 and that if you don’t take action, you may soon be facing foreclosure. When you receive this notice, it’s important not to panic.
Here are some options that can delay or even help you avoid the foreclosure process altogether:
- Lender negotiation: If your mortgage is “above water,” (meaning you have equity in your house) you may be able to refinance your loan agreement by negotiating with your lender. This will allow you to receive lower monthly payments.
- Short Sale: 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 its 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. This is commonly known as a deficiency judgment.
- Bankruptcy: 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.
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. And here is how…
Ways FastPath Home Buyers can help you 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 properties in Minneapolis MN. We would love to make you an all-cash offer on your house too. Simply contact us, either by calling (612) 351-2384 or by filling out the form below, and we’ll get back to you with a fair cash offer.
- We can provide you FREE guidance and resources – no matter what questions you may have about foreclosure, we’ll answer them or link you to the right resources, so that you can make well-educated decisions at this time. This costs you nothing, there’s absolutely no pressure, no obligation… just free guidance without a catch.
So if you’re facing any foreclosure problems in Minneapolis MN whatsoever and need help, contacting our company is a good option to consider.
So there you have it. Here is everything you need to know about pre-foreclosure, as well as how to deal with it in Minneapolis MN. If you have any more questions, feel free to reach out to us either by calling (612) 351-2384 or filling out the short form below. We’ll do whatever we can to help you navigate through your foreclosure troubles and find effective solutions. And if all else fails, we’ll allow you to sell your house during foreclosure.