What is a Pre-Foreclosure in Philadelphia?

what is a pre-foreclosure

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 Philadelphia anyway?

Many homeowners across America and Philadelphia face difficulties making their monthly mortgage payments from a loss in employment, fewer hours at work, and the loss of a loved one. Sometimes our life just changes completely, affecting the way we pay our bills. 50% of American struggles to pay their bills. 

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 vary by bank and situation sometimes.

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

If you’re behind on mortgage payments, you’re likely to receive a “notice of default” from your mortgage lender. It is a formal notice stating that you have failed to make payments. If you receive this notice it means that the lender fully plans to take your home from you. 

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 Philadelphia 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 Philadelphia, like us at Buying Property 215, 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 Philadelphia PA area home quickly, often in just a week or two, will pay in cash, and take the stress out of trying to find a buyer. MOst homeowners looking to sell their homes quickly struggle to find a qualified buyer for their home. The buyer may decide to play games with you and seem almost never legit. They may not be qualified or have the funds to purchase your home. There are many different worries ones face when dealing with buyers. 
  • You can contact the bank and ask them to permit a short sale. You will sell your home for less than it’s worth in a short sale, and the bank will take the loss as a tax write-off.  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 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. Making it almost impossible to re-purchase a home again. 

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.

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.

A foreclosure can often negatively affect your credit score by 200-400 points and 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.

But if you’re unable 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 to evaluate your situation to see if we can help.
  • We can buy your Philadelphia area houseWe buy houses in Philadelphia and would love to make you an all-cash offer on your home. Just fill out the form here to get started >>
  • You can ask us questions, and we can provide you with FREE guidance and resources to make a well-educated decision. This costs you nothing. There’s absolutely no pressure, no obligation… just free guidance without a catch. We enjoy helping homeowners get rid of a property they may be struggling with. Not always is the homeowner in financial trouble. We also see homeowners who own homes that just need too much work. It becomes so challenging for them as a homeowner. 

If you’re in the pre-foreclosure stage… you’ve still got time to fix this situation.

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 tap into our free foreclosure foreclosure resources.

Want To Discuss Your Pre-Foreclosure Options? Call Us at 215-359-6090
Or, Submit Your Info Here To Get A Cash Offer On Your House >>

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