Many homes across the U.S. are going into foreclosure. It helpful to understand the process and what to expect.
What is a pre-foreclosure in Wichita?
Many homeowners in Wichita, and across the country, are finding it difficult to pay their mortgage.
Homeowners who miss several mortgage payments will receive a warning from the lender. The warning notifies the homeowner that they could lose their home if payment is not received. This period is known as a “pre-foreclosure.”
Banks and mortgage lenders typically offer the owner three months to catch up on mortgage payments, but this number varies depending on the bank and the situation.
The bank will foreclose on the home if the homeowner does not make the payments necessary to be current. The bank will evict the homeowner and assume ownership of the property. During this stage of foreclosure however, a borrower has the opportunity to take advantage of different options to prevent losing the home.
A Borrowers Options in a Pre-foreclosure
When you are behind on your mortgage payments, you will likely receive a “notice of default” letter from your mortgage lender. The letter will state that you have not made mortgage payments for the last 90-180 days. It’s important not to panic.
Options you may have 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 and have lower monthly payments. Check with your local Wichita mortgage broker or you can contact us and we will connect you with a reputable one.
- You may be able to sell your home to a real estate investor that’s reputable in Wichita like us at Sell Now Homes Wichita, using the cash acquired to pay the months of payments owed (or we *may* be able to work something out with the lender that relieves all or part of your back payments. We can buy your Wichita Kansas area home quickly, often in just a week or two, will pay you in cash, and take the stress out of trying to find a buyer.
- Ask the bank to permit a short sale. A short sale is where you sell your home for less than it’s worth and the bank will write-off the loss. In some cases, you may 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. This option can buy you time to pay your debt. However, bankruptcy will remain on your credit report for years, and can cause significant hurdles.
There are widespread financial troubles across the country and lenders are willing to work with borrowers much of the time.
There are options that will allow you to remain in your home, or salvage your credit rating, just be honest and communicative with your lender. Your credit score will likely be negatively affected and will prevent you from securing any type of loan or credit for 5-7 years. It is imperative to communicate with your bank if you receive a Notice of Default.
But if you are unable to find a solution working directly with your lender, connect with us. We may be able to help.
Ways We Can Help If You’re in a Pre-Foreclosure
- We can potentially help with a short sale. Submit your info on this website so we can evaluate your situation to determine if we can help.
- We can buy your Wichita area house. We buy houses in Wichita and would love to make an all-cash offer to you on your house. Just complete this form to get started. >>
- You can ask us questions and we can provide you FREE guidance and resources so you can make a well-educated decision. This doesn’t cost anything, there’s absolutely no pressure, and no obligation…just free guidance without a catch.
If you’re in the pre-foreclosure stage, you still have time to remedy the situation.
Remember to connect with your bank to see if they’re willing to work with you. Or contact us if you’d like to find out how much we can buy your house for or to tap into our free foreclosure resources.