It’s no secret that the housing market is constantly in flux. With millions of homes across the country foreclosed, buyers and mortgage holders need to understand the process. More and more homeowners are finding themselves in pre-foreclosure, and many don’t know what to do. You may ask yourself, “Can I sell my house fast?” This blog will help you understand pre-foreclosure in Biloxi, MS, and the steps you can take in that situation.
So What Is Pre-foreclosure in Biloxi, MS?
Many homeowners across America and Biloxi are facing difficulties making their monthly mortgage payments. A homeowner who misses three to six months of mortgage payments is given a warning by the lender, notifying them that they must pay or lose their home. This period is referred to as “pre-foreclosure.”
Banks and mortgage lenders typically provide three months for homeowners to become current. Although, this number can vary by bank and situation. When a homeowner fails to make the necessary payments, the bank will foreclose on the home, assuming ownership, and evict the homeowner. Fortunately, several choices are open to mortgage holders during this stage of the foreclosure process to avoid losing their property.
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.
You have options that can delay or even prevent major challenges, such as:
- If you’ve built equity in your home (your mortgage is “above water”), refinancing may be an option to explore, possibly leading to lower monthly payments.
- You may be able to quickly sell your property to home buyers in Biloxi, NS, or a reputable real estate solution and investment firm, using the cash acquired to pay the months of back payments owed.
- You can try contacting the bank and asking for a short sale. With this method, you’ll sell your property at an amount lower than its market value, but the bank will take the loss as a tax write-off. In some cases, you might still be required to pay the difference if the house didn’t sell for what is owed.
- You may be able to declare bankruptcy, which can allow you to pay your debt sooner. Bankruptcy will appear on your credit report for years and, more often than not, will have a significant negative impact.
Don’t Ruin Your Credit Score
Many lenders are quite sympathetic to the numerous individuals across the country who face financial difficulties, although that’s not always the case. You have honestly inquired, “Can I sell my house fast?” Doing so will likely uncover options permitting you to salvage your credit score. A foreclosure can negatively impact your credit score by 200-400 points and prevent you from obtaining a loan for 5-7 years, so be very dutiful if you’ve received a Notice of Default from your lender.
Pre-foreclosure Stage: Don’t Panic!
If you’re one of the people who have their property pre-foreclosed, don’t worry – help is on the way. At Southern Properties United, we are a home-buying company dedicated to helping people in pre-foreclosure. We are a firm of home buyers in Biloxi, MS, and we would love to make you an all-cash offer on your house.
We understand how hard the process can be, so we offer to buy your home quickly, often in just a week or two, taking the stress out of trying to find a buyer. If you’re feeling overwhelmed, don’t hesitate and call us today!