With millions of homeowners across the country facing foreclosure, understanding this process is crucial both for property owners and mortgage lenders.
So what is a pre-foreclosure in Lubbock anyway?
Countless families across America and right here in Lubbock are finding themselves overwhelmed by their monthly mortgage commitments, creating stressful financial situations.
When homeowners fall behind by 3-6 monthly payments, lenders typically issue a formal notice demanding payment to avoid home loss. This critical window is known as “pre-foreclosure” and represents a crucial opportunity for action.
Most banks and mortgage lenders allow three months for homeowners to catch up on payments and resolve their situation. This timeframe may vary based on your specific lender’s policies and your unique circumstances.
If payments remain unresolved, the bank will initiate foreclosure proceedings, seizing the property and forcing eviction. However, during this pre-foreclosure period, homeowners still have options to avoid losing their home. At Electrum Properties, we specialize in creating win-win solutions that solve real estate problems quickly and help homeowners regain their freedom from these stressful situations.
Pre-foreclosure Options for Borrowers
If you’re behind on mortgage payments, you’ll likely receive a “notice of default” from your mortgage lender – a significant warning sign that requires immediate attention.
This document states that you haven’t made mortgage payments for the last 90-180 days. Remember not to panic – you still have options to resolve this situation.
Here are viable 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 mortgage, securing lower monthly payments. Check with a local Lubbock mortgage broker… or contact us and we can connect you with a trusted professional.
- You may be able to quickly sell your home to a real estate investor like us at Electrum, using the cash to cover your back-payments (or we *may* be able to negotiate with your lender to relieve all or part of your back payments). We can buy your Lubbock Texas area home quickly, often in just a week or two, will pay in cash, and remove the stress of finding a buyer while helping your community with a win-win solution.
- You can contact the bank and request a short sale. In this scenario, you’ll sell your home for less than it’s worth, and the bank will take the loss as a tax write-off. Be aware that in some short sales, you may still be required to pay the difference if the house doesn’t sell for what is owed on the loan.
- You may be able to declare bankruptcy, which can buy you time to address your debt. However, bankruptcy will remain on your credit report for years and can significantly impact your financial future.
Lenders understand the widespread financial challenges many homeowners face today and are often willing to work with borrowers to find mutually beneficial solutions.
If you communicate honestly with your lender, you’ll frequently discover options that allow you to keep your home or at least protect your credit rating while getting your financial freedom back.
A foreclosure can severely damage your credit score by 200-400 points and prevent you from obtaining any type of loan for 5-7 years, so take immediate action if you’ve received a Notice of Default from your lender.
If you can’t find a solution working directly with your lender… reach out to us at Electrum Properties. We specialize in solving real estate problems just like yours.
Ways We Can Help If You’re In Pre-Foreclosure
- We can potentially help with a short sale – Submit your information on this website so we can evaluate your situation and determine how we can help you navigate this challenging time.
- We can buy your Lubbock area house fast and in any condition – We buy houses in Lubbock and would love to make you a fair all-cash offer on your property. Just fill out the form here to get started >>
- You can ask us questions and receive FREE guidance and resources to make an informed decision. This costs you nothing – there’s absolutely no pressure, no obligation… just honest advice without any catches.
If you’re in the pre-foreclosure stage, remember that you still have time to resolve this situation and get your freedom back.
Connect with your bank to explore possible arrangements, or contact us at Electrum Properties if you’d like to see what we can offer for your house or to access our free foreclosure resources.