What is a Pre-Foreclosure in Sarasota?

With millions of homes across the country going into foreclosure, it’s important for buyers to fully understand the process.

Many homeowners are currently facing a challenging situation with pre-foreclosure, and this blog is here to provide some guidance and options to consider. Pre-foreclosure is the initial stage when a homeowner falls behind on mortgage payments before the foreclosure auction takes place. It’s essential for homeowners to explore all the options during this time to avoid losing their property.

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 in Florida foreclosures to become current and avoid foreclosure. Of course, this number can vary by bank and historical factors.

If a homeowner fails to make the necessary payments, the bank will foreclose on the home, assume 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.

If you’re behind on mortgage payments, you’re likely going to 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. It’s important not to panic.

You have options that can delay or even prevent losing your home:

• Loan modification: You can negotiate with your lender to modify the terms of your loan. This may involve extending the repayment period, reducing the interest rate, or changing the loan structure in a way that makes it more affordable for you. Loan modification aims to help you catch up on missed payments and make your mortgage more manageable.
• Short sale: In a short sale, you sell your property for less than the outstanding mortgage balance with the approval of your lender. This option can help you avoid foreclosure and minimize the impact on your credit score. However, it’s important to note that the lender must agree to the terms of the short sale, as they will need to approve the sale price.
• Deed in lieu of foreclosure: This option involves voluntarily transferring ownership of your property to the lender. By doing so, you essentially give the property back to the lender to satisfy the outstanding mortgage debt. This can be an alternative to foreclosure and may help you avoid some of the negative consequences associated with it.
• Sell to a real estate investor: Real estate investors may be interested in purchasing properties in pre-foreclosure. They can offer you a cash deal and a quick closing, allowing you to settle your outstanding mortgage debt and potentially walk away with some funds. Selling to an investor can be an attractive option if you’re unable to catch up on missed payments or if other solutions have not worked out. Home Buyers Plus is a cash buyer for houses, and we can buy your Sarasota FL area home quickly, often in just a week or two, will pay in cash, and takes the stress out of trying to find a buyer.

Most 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. Frankly, lenders do not want to go through the hassle and cost of foreclosing, evicting and then reselling the home.

But if you’re not able to find a solution with your lender directly … connect with us. We have solutions for you.

• We can potentially help with a short sale – Submit your info on this website so we can evaluate your situation to see if we can help.
• We can buy your Sarasota area house – We buy houses fast for cash in Sarasota and would love to make you an all-cash offer on your house, too. Just fill out the form here 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 costs you nothing, there’s absolutely no pressure, no obligation… just free guidance without a catch.

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 get a cash offer for your house for or to tap into our free foreclosure foreclosure resources.