What is a Pre-Foreclosure in Louisville? In Louisville Kentucky, it’s downright essential for buyers and mortgage holders to know and understand the pre-foreclosure process in Louisville. With homes across the nation facing the risk of foreclosure, pre-foreclosure gives folks a fighting chance to get out of their situation before it is to late. What is a Pre-Foreclosure in Louisville?
Pre-foreclosure is the process that comes before foreclosure (Bryan law Offices Louisville) , Essentially Pre Foreclosure in Louisville is the period before your house actually gets foreclosed on.
When dealing with a foreclosure in Louisville it is important to note that once your house is sold at the Foreclosure Auction then that property is sold and we are not able to change the decision of that happening so acting quick is always important in these situations.
So what is a pre-foreclosure in Louisville anyway?
Many homeowners across America and Louisville are facing difficulties making their monthly mortgage payments in these tough times of the economy. What is a Pre-Foreclosure in Louisville?
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.” This is around the timeframe it takes for the lender to Initiate the foreclosure sale in Louisville. During that time frame you should be working with your lender on a plan to catch up on your payments or sell the house.
Banks and mortgage lenders typically provide three months for the homeowner to become current before starting to file paperwork. Of course this number can vary by bank and situation sometimes. Lenders are usually willing to work with you so in these times communication with them is important to keep.
If a homeowner fails to make the necessary payments, the bank will foreclose on the home, assuming 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 to prevent losing their home.
Pre-foreclosure Options for Borrowers In Louisville
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 in this situation and to stay calm.
You have options that can delay or even prevent losing your home:
- If your mortgage in Louisville is “above water,” (meaning you have equity in your house) you may be able to refinance your mortgage, receiving lower monthly payments or do a loan modification. Check with your local Louisville 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 Kentucky that’s reputable like us at Louisville Cash Real Estate, 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 Louisville KY 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. 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 or possibly want you to still pay the difference in the sale. In some short sales you may still be required to pay the difference to the bank 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 pay your debt. Bankruptcy will remain on your credit report for years, and can cause significant damage, We always recommend a short sale over bankruptcy.
- We Can Buy Your House Through Owner Financing In Louisville Kentucky, to us to where we can give you more money over time and take care of your monthly payments for you, Fill out our form below to hear about this option.
Lenders are very much aware of the widespread financial troubles across the country and they’re willing to work with borrowers a lot of the time because at the end of the day they just want their money back and they do not like to deal with attorneys and foreclosure processes because of the time and money it takes to go through the process
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 salvage your credit rating during these hard times.
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. Short sales are usually only two years as far as hurting your credit score.
But if you’re not able to find a solution with your lender 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 potentially help with a short sale – Submit your info on this website on the form below so we can evaluate your situation to see if we can help or what the best next steps for you are.
- We can buy your Louisville area house – We buy houses in Louisville and would love to make you an all-cash offer on your house too.
- You can ask us questions and 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, no obligation… just free guidance without a catch. Call us at 502-461-1450 today!
If you’re in the pre-foreclosure stage… you’ve still got time to fix this situation. Let us help
Just connect with your bank to see if they’re 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 foreclosure resources. We can also contact and reach out to your bank for you if it makes the process easier for you all.