Getting Pre-foreclosure Help

As an owner facing foreclosure, getting pre-foreclosure help is very important. Believe it or not, a pre-foreclosure stage presents opportunities for all the parties involved: the lender, the investor and even you, the borrower.

Pre-foreclosure is the time between the notice of default has been filed and the transfer of the title to the lender. This stage will leave you from 90-120 days to come up with a solution before actual foreclosure. Some borrowers, who are left with no other option, wait until the property enters into a pre-foreclosure stage before offering the lender a short sale option. Lenders can provide pre-foreclosure help by accepting the short sale offer. In a short sale, the lender sells the property to the borrower at a discounted price based on the outstanding mortgage balance.

Providing pre-foreclosure help to the borrower actually saves the lender a lot of money in foreclosure proceedings costs. Holding costs alone will make a lender think twice about not accepting a short sale offer. Naturally, lenders make sure that the pre-foreclosure help they provided the borrowers in terms of accepting a short sale is deserved. They will have to thoroughly investigate the borrower’s financial status before any pre-foreclosure help is provided.

If your lender does not accept your short sale offer, then you still have real estate brokers to ask for pre-foreclosure help. These brokers can look for potential buyers willing to buy pre-foreclosure properties. Since your property is considered in distress, you will have to sell them below their average market price. If you have little equity then you might come out of this with some money in your pocket. This form of pre-foreclosure help goes a long way especially for borrowers who do not know their available options.

Now, selling the property yourself is another way to get pre-foreclosure help. Short of putting a “for sale” sign in front of your home is guaranteed to attract the attention of your neighbors and friends. They night be able to provide pre-foreclosure help by either lending you money or referring investors and buyers. You will be surprised by how many real estate investors are on the lookout for properties in a pre-foreclosure stage. Not only will these investors save in the discounted price but also in agent’s fees or commissions as well.

Knowing who to turn to for pre-foreclosure help can somehow lighten the impact of having your home enter foreclosure.