When you hear the word pre-foreclosure, it essentially means a borrower has defaulted on their loan. With regards to residential loans, to enter the pre-foreclosure state, a homeowner would need to miss 3 mortgage payments in a row.
The pre-foreclosure period begins when the lender notifies the borrower-by certified letter-to state they intend to begin foreclosure proceedings within 30 days. In many states, when a lender issues a pre-foreclosure notice, the borrower’s name is also posted to a public listing of individuals who are subject to foreclosure. This allows companies to contact homeowners to provide solutions. If you or someone you know are in a similar situation, you have options!
What Should You Do if Your Home Goes into Pre-foreclosure?
If your home is in pre-foreclosure, you still have options and can avoid foreclosure. You’ll need to act fast! You may even be able to find a solution that keeps you in your home or prevent some of the financial harm and damage to your credit that foreclosure can bring. Please reference the Avoid Foreclosure blog to get a full understanding of your options, but keep in mind each situation is different and may require a specialist that can guide you through the appropriate channels.
If you have any questions or would like to discuss your specific options, please feel free to reach the staff at Millennia Property Solutions.
By Sofia Lovinsky
