Foreclosure can feel overwhelming, but facing it doesn’t have to mean facing it alone. At Nomadic Realty Solutions we are here to guide you through every step, offering tailored solutions that fit your unique financial needs. Begin taking proactive steps today to protect your home, secure your future, and rebuild financial security.
Preforeclosure is the first step in the foreclosure process. It’s designed to give homeowners options to stay in their home before a foreclosure. Preforeclosure occurs when a homeowner misses several mortgage payments, prompting the lender to issue a notice of default. This is a legal notice that means you’re in jeopardy of the lender foreclosing on your home if you don’t quickly work to resolve the matter.
The preforeclosure process consists of a few steps. When a homeowner misses 3 months of mortgage payments, they’re typically in default of their mortgage. That’s the unofficial beginning of the foreclosure process and the official beginning of preforeclosure.
When it becomes clear that you can’t make a monthly mortgage payment, the best and first action you should take is to contact your mortgage servicer. It may be the last step you want to take, but in most cases, a lender will work with a homeowner rather than letting them default without at least attempting a resolution.
Legal fees make the foreclosure process very expensive, so lenders try to avoid it if possible. Lenders can work with borrowers to arrange a mortgage forbearance – or a pause in payment – that helps them create a repayment schedule to avoid default.
Homeowners with a preforeclosure home have several options to get out of home debt and minimize damage to their credit score.
If you’re a homeowner in preforeclosure, speak with your mortgage servicer today. It may be worth considering your refinancing options and applying for a refinance, depending on your situation.
