As a homeowner in Eugene, one of the most difficult things that you can face is being in pre-foreclosure or be foreclosed on. Not only are these situations incredibly stressful and time consuming, but they can significantly impact your credit score and financial future, making buying a home or even renting again extremely hard. It is essential to understand the differences between foreclosure and pre-foreclosure and the steps that you can take to work to stop the foreclosure process altogether and save your credit and finances as a homeowner.
What Exactly is Foreclosure?
Foreclosure is a legal process that your lender initiates to recover the remaining outstanding balance of your mortgage loan. When a homeowner falls behind on their mortgage payments, the lender has the right to foreclose on the property and then turn around and sell it to recover the outstanding balance, often at a public auction.
Foreclosure is a severe and devastating situation that can have impactful, long-term consequences on your credit score and financial future. In addition to losing your home, foreclosure may also impact your ability to secure loans, obtain credit cards, and even hinder employment opportunities in the future. Our goal at Property Bridge is to help as many Eugene homeowners avoid this altogether by offering a fair, fast, and honest way to sell their property and have a clean slate for their next steps.
Then What is Pre-Foreclosure?
Pre-foreclosure is the period of time before the actual foreclosure occurs when the homeowner has fallen behind on their mortgage payments, but has not yet gone through the full foreclosure process. During this period, the homeowner has the chance to potentially catch up on their mortgage payments or pay off their mortgage balance to avoid foreclosure all together.
Pre-foreclosure is can be an extremely stressful time for homeowners, but it does provide them with an opportunity to potentially save their home and not have their credit fully affected. If you are in pre-foreclosure, there are several things you can do to save your credit and avoid being foreclosed on.
What Can You Do to Save Your Credit in Pre-Foreclosure?
1. Contact Your Lender
The first and most important thing you can do as a homeowner facing foreclosure, is immediately reaching out to contact your lender. Explain your situation to them and see if they can work with you on a repayment plan or loan modification. In all honesty mortgage lenders want to avoid a foreclosure just as much as you do, they usually are willing to work with homeowners to find a solution for both parties.
2. Sell Your House
If you are unable to catch up on your mortgage payments, you may need to consider selling your house. Selling your house will allow you to avoid foreclosure and will save your credit score. It is important to that you’ve contacted your lender to know exactly what you owe and how much time you have before your house is put up to auction. This is crucial because it can sometimes take 90 days or more for a home to be sold traditionally and with the possibility that a buyer could drop out of a contract at any time during the process it makes a market listing potentially risky. Not to mention having to prep your home and make potential repairs.
3. Work with a Real Estate Investor
Another option you may want to consider is working with a professional real estate investor like Property Bridge. Real estate investors can buy your house directly from you, even if you are in pre-foreclosure. This can help you avoid foreclosure completely and the negative impact it can have on your credit score and future financial success.
At Property Bridge, we understand the stress and uncertainty that comes with pre-foreclosure and foreclosure. We can move quickly to buy your house, even if it needs repairs or updates. We buy houses in and around Eugene directly from homeowners, which means you can avoid the hassle and expense of listing your house on the market.
Why Choose Property Bridge?
If you are in pre-foreclosure or foreclosure, selling your house to Property Bridge can help you avoid the negative impact it can have on your credit score. Here are some reasons why you should choose Property Bridge:
1. We Are Familiar With the Process
At Property Bridge, we are used to working with homeowners that are in pre-foreclosure and understand that there are often factors that go beyond the financial aspect of selling the property. We will work with you to understand your needs and if we are able, assist you with whatever your next steps look like.
2. We Offer a Fair Price No Matter the Situation
We understand that you want to get a fair price for your house, which is why we offer a fair price based on the condition of your house and the current market conditions. We want you to feel confident that you are getting a fair price for your house. This often means that if there is equity in your home you will walk away with cash once the mortgage balance and any liens are paid off.
3. We Can Close Quickly On Your Property
We know that time is of the essence when you are in pre-foreclosure or foreclosure, which is why we close quickly. In most cases, we can close on your house in just a few short days, giving you the cash you need to avoid foreclosure and move on with your life without all of the unneeded stress.
Although we are capable of closing quickly it is important to keep your timeline in mind. It is often the case, and is true in Lane County that you need to pay your lender the required amount 5 days prior to your auction date. This means that a price needs to be negotiated and agreed upon, a sales contract signed by both parties, and for the title company to receive all of the necessary information from your lender before the sale of your property can be finalized (your lender being payed off).
The more time you allow for the sale of your property the more opportunity you potentially have to make money.
Facing foreclosure or pre-foreclosure can be a scary and stressful time for homeowners. However, there are options available to you to save your credit score and avoid foreclosure. If you are in pre-foreclosure or foreclosure, contact your lender, consider selling your house, or work with a real estate investor like Property Bridge to help you avoid the banks. We can help you sell your house quickly, allowing you to move on with your life and avoid the negative impact of foreclosure on your credit score. Give us a call today to learn more! (541) 833-0304 It is free to talk with us, and there is no obligation to sell.