“Given that a significant number of homes nationwide are currently undergoing foreclosure, it is essential for both mortgage holders and potential buyers to comprehend the procedure involved.”
So what is a pre-foreclosure in New Orleans anyway?
Many homeowners in New Orleans and across America are facing difficulties in keeping up with their monthly mortgage payments.
“When a homeowner fails to make their mortgage payments for a period of 3-6 months, the lending institution will issue a notice, warning the homeowner that they must pay or face the risk of losing their home. This period is commonly referred to as “pre-foreclosure.”
Typically, banks and mortgage lenders allow a three-month period for the homeowner to become current on their payments. However, it’s important to keep in mind that this timeline may vary based on the bank and the specific circumstances.
If a homeowner fails to make the necessary payments, the bank will foreclose on the home, assuming ownership, and eventually evict the homeowner. However, during this stage of the foreclosure process, a mortgage holder may still have some options available to prevent losing their home.
Pre-foreclosure Options for Borrowers
“Individuals who have fallen behind on their mortgage payments can anticipate receiving a “notice of default” from their 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.
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 your mortgage, receiving lower monthly payments. Check with your local New Orleans 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 that’s reputable in New Orleans like us at Omni Home Buyers, using the cash acquired to pay the months of back-payments owed (or we *may* be able to work out something with the lender that relieves all or part of your back payments.We can buy your New Orleans LA area home quickly, often in just a week or two, will pay in cash, and takes the stress out of trying to find a buyer.
- You can contact the bank and ask them to permit a short sale.
A short sale involves selling your home for less than its actual value, and the bank takes the resulting loss as a tax write-off. However, in certain short sales, you may still be responsible for covering the difference if the house doesn’t fetch enough to cover the outstanding loan amount.
- You may be able to declare bankruptcy, By filing for bankruptcy, you may be granted additional time to pay off your debt. However, it’s important to note that bankruptcy will have a lasting impact on your credit report for several years and can cause substantial harm.”
Lenders are well-informed of the prevailing financial challenges across the nation, and in many cases, they are open to collaborating with borrowers.
When you maintain transparency and open communication with your lender, you will frequently discover that there are several alternatives available to help you keep your residence or at the very least, recover your credit rating.
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, so be very dutiful if you’ve received a Notice of Default from your lender.
In the event that you are unable to reach a viable solution with your lender despite working directly with them, it may be time to seek assistance. We understand that financial hardship can be overwhelming and stressful, which is why we are here to provide support. Our team has the expertise and resources to help you navigate the complexities of your financial situation and explore alternative solutions. Whether it’s negotiating with your lender on your behalf, assisting with loan modifications or refinancing options, or providing advice on how to improve your credit score, we are here to help. So if you find yourself struggling to keep up with your mortgage payments or facing the possibility of foreclosure, don’t hesitate to connect with us. We are committed to helping you find a way to keep your home and get back on track financially.
Ways We Can Help If You’re In Pre-Foreclosure
- We can potentially help with a short sale – Please provide the original sentence so I can provide an appropriate rewrite.
- We can buy your New Orleans area house – We buy houses in New Orleans and 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 equip you with the resources needed to make an informed decision. Rest assured, there are no charges involved, and no obligations or pushy tactics. We offer free guidance with no strings attached.
If you’re in the pre-foreclosure stage… you’ve still got time to fix this situation.
“Simply reach out to your bank to inquire if they are open to collaborating with you, or alternatively, you can contact us to explore the possibility of purchasing your house, or to avail our complimentary foreclosure resources.”