With millions of homes across the country going into foreclosure, it’s important for both buyers and mortgage holders to understand the process.
So what is a pre-foreclosure in Portland anyway?
Many homeowners across America and Portland are facing difficulties making their monthly mortgage payments.
When a homeowner misses 3-6 months of mortgage payments, the lending institution will issue a warning, notifying the homeowner to pay or lose their home. This period is known as “pre-foreclosure.”
Banks and mortgage lenders typically provide three months for the homeowner to become current. Of course this number can sometimes vary by bank and situation.
If a homeowner fails to make the necessary payments, the bank will foreclose on the home, assume ownership, and then evict the homeowner. Thankfully, during this stage of the foreclosure process, a mortgage holder has the opportunity to take advantage of several options to prevent losing thehome.
Pre-foreclosure Options for Borrowers
If you’re behind on mortgage payments, you will likely 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 (like you didn’t already know this). Do not to panic.
You have 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, receiving lower monthly payments. Check with your local Portland mortgage broker.
- In order to protect your credit rating, you may be able to quickly sell your home to a real estate investor that’s reputable in Portland like us at AppleTree Group LLC. Depending on the amount of equity you have, you may be able to use the cash acquired from the sale of your property, to pay the months of back-payments owed. We can buy your Portland Oregon area home quickly – often in just a week or two – and will pay in cash. How nice would it be to have the work taken out of trying to find a buyer!
- 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. In some short sales, if your house doesn’t sell, you may still be required to pay the difference to the bank for what is owed on the loan.
- You may be able to declare bankruptcy, which can buy you time to pay your debt. Bankruptcy will remain on your credit report for years, and can cause significant damage.
Lenders are aware of the widespread financial troubles across the country and they’re often willing to work with borrowers.
If you’re honest and communicate with your lender, you’ll often find that there are options that will allow you to remain in your home, or at least keep your credit rating in tact.
A foreclosure can often negatively affect your credit score by 200-400 points and can prevent you from obtaining a loan of any sort for 5-7 years. It’s important to be responsive if you’ve received a Notice of Default from your lender.
If you’re not able to find a solution with your lender when working directly with them… connect with us. We may be able to help.
Ways We Can Help If You’re In Pre-Foreclosure
- We can buy your Portland area house – We buy houses in Portland and would love to make you an all-cash offer on your house. Call us at (971) 246-7954 or fill out the form here to get started >>
- We can provide you FREE guidance and resources so you can make a well educated decision. This costs you nothing, there’s absolutely no pressure, an no obligation… just free guidance without a catch.
If you’re in the pre-foreclosure stage… you still have time to fix your situation.
Contact your bank to see if they’re willing to work with you. Contact us if you’d like to receive free foreclosure resources. We would love to help, if you would like to sell your house to us and receive cash within 5 – 7 days.