Help for Homeowners in Pre-Foreclosure

If your home is in pre-foreclosure, the first thing you should know is that you have options for stopping the foreclosure process and getting out from under your debt. And at We Buy Houses Colorado Springs, we’re here to help.

We understand that facing foreclosure is incredibly stressful, but at this point, you can still sell your house. You can then use the proceeds from the sale to pay off the mortgage payments you missed and avoid a serious hit to your credit that can be tough to recover from.

How do you sell your house fast to prevent the foreclosure process from moving forward? And do you have any other options other than selling? Read on to find out.

How Much Time Do You Have to Sell Your House?

Before we dive into your options for selling, it’s important to discuss the foreclosure timeline so you know what to expect. When your home first goes into pre-foreclosure, that means you’re at least 120 days delinquent on your mortgage.

Your lender must send you a written notice of default, and from there, the lender must give you a minimum of 30 days to cure (pay back) the default. If you fail to make up your missed mortgage payments within that time frame, only then can your lender initiate the foreclosure process.

Sell Your House to a Cash Home Buyer

Selling your house for cash is the simplest and quickest way to get out from under your missed mortgage payments and stop the foreclosure process from progressing. And luckily, selling to a cash buyer is super simple. Here’s how the process works:

  1. Contact the buyer to request a cash offer for your home. At We Buy Houses Colorado Springs, you can call our office or fill out our online contact form to get in touch with us.
  2. Set up an in-home assessment. To accurately valuate your house and make you a fair cash offer, the buyer must perform a brief assessment of your property. You can set up this short tour at any time that’s convenient for you.
  3. Get your offer. After assessing your home and several other details that pertain to its fair market value, the buyer will give you an all-cash offer and allow you time to review it.
  4. Sell your house whenever you’re ready. If you like the offer and want to sell, you get to choose your closing date and move-out timeline. If you need to sell quickly, you can typically close within two weeks, but in many cases, cash home buyers can close in just a few days when you’re in a pinch.

Cash home buyers do not charge commission fees on the sale. Nor do they tack on closing costs and additional transaction fees. The offer you get reflects the exact amount of cash you’ll take home, and you can then use your profits to cure the mortgage default and avoid foreclosure.

Ask Your Lender About a Short Sale

In a short sale, your lender will give you permission to sell your house for less than what you currently owe on the mortgage. And if you receive an offer, and the bank agrees to accept it, your lender can also agree to forgive the deficiency balance on the loan (the amount you’d normally still owe on the mortgage). Unfortunately, a short sale will have a negative impact on your credit, but not to the degree that a foreclosure will.

File for Bankruptcy

If you’d like to avoid selling your house to prevent foreclosure, you can always file for bankruptcy, but this option should be a last resort. When you file for Chapter 7 or Chapter 13 bankruptcy, an automatic stay immediately goes into effect. This stay prevents your creditors from taking further collection against you, so it will stop the foreclosure process in its tracks.

While your case is pending, you won’t have to make any additional mortgage payments, which will give you some additional time to save up the money to cure the default. But keep in mind that if you file for Chapter 7 (also known as liquidation bankruptcy), there’s a chance you could end up losing your house in the end. In a Chapter 7 case, your bankruptcy trustee may need to sell some of your assets to pay back your creditors, and since your home is one of those assets, it could be at risk.

If you file for Chapter 13, on the other hand, your house won’t be at risk. Rather than liquidating assets, your trustee will put you on a three-to-five-year debt repayment plan that will require you to make monthly payments according to your budget. When that plan reaches its term, the remainder of your dischargeable debts will be forgiven, and you’ll get to keep your house.

Sell Your House Fast With We Buy Houses Colorado Springs

If you’re facing foreclosure and need to sell your home as quickly as possible, don’t hesitate to reach out to our team at We Buy Houses Colorado Springs. We buy houses in any condition and can give you a no-obligation, all-cash offer for your home in as little as 24 hours. From there, we can help you sell your house in a matter of days. To learn more or request an offer, give us a call today at (719) 602-8814 or fill out our contact form, and we’ll be in touch right away.