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What is a Pre-Foreclosure in Washington?

The process of pre-foreclosure is an important step in the overall foreclosure process for both buyers and mortgage holders. It occurs when a mortgage holder is behind on their payments and has not yet officially entered into foreclosure proceedings. During this time, the homeowner may still have the opportunity to negotiate with their lender or sell their home before it goes into full foreclosure. Buyers may also be able to take advantage of pre-foreclosure opportunities by purchasing a home at a lower price than market value, however they should be aware of any risks or challenges associated with this type of purchase.

So what is a pre-foreclosure in Seattle anyway?

Many homeowners across America and Seattle are facing difficulties making their monthly mortgage payments.

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.

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 Seattle 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 Seattle like us at Gold Peak Ventures, 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 Seattle WA 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.
  • You can contact the bank and ask them to permit a short sale. When a homeowner falls behind on mortgage payments and is at risk of foreclosure, they may consider a short sale as an alternative to the lender taking possession of the property. In a short sale, the home is sold for less than its worth and the remaining debt is forgiven by the lender. However, it’s important to note that in some cases homeowners may still be required to pay the difference between what is owed on the loan and what the house sells for. This is known as a deficiency balance.
  • You may be able to declare bankruptcy, filing for bankruptcy is a legal process that can offer a fresh financial start to those overwhelmed by debt. However, it is important to consider the long-term consequences before pursuing this option. Bankruptcy will stay on your credit report for up to ten years and can have a negative impact on future credit applications and job opportunities. It may also result in the loss of assets, depending on the type of bankruptcy filed. While it may provide temporary relief, it is important to carefully weigh the pros and cons before making any decisions regarding bankruptcy.

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 can 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 not able 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 so we can evaluate your situation to see if we can help.
  • We can buy your Seattle area houseWe buy houses in Seattle 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 see what we can buy your house for or to tap into our free foreclosure foreclosure resources.

Want To Discuss Your Pre-Foreclosure Options? Call Us at 253-888-5660
Or, Submit Your Info Here To Get A Cash Offer On Your House >>

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