With millions of homes across the country entering foreclosure, it’s important for both homeowners and potential buyers to understand the process—especially what “pre-foreclosure” really means.
So, What is a Pre-Foreclosure in Marion County?
Many homeowners in Marion County—and across the nation—are struggling to keep up with their monthly mortgage payments. When a homeowner misses three to six months of payments, the lender typically issues a warning notice, alerting the borrower that they must catch up or risk losing their home. This stage is known as “pre-foreclosure.”
Most lenders give homeowners about three months to resolve the missed payments and bring the loan current. However, the timeframe can vary depending on the lender and individual circumstances.
If the homeowner is unable to pay the overdue amount, the lender may move forward with the foreclosure process—taking ownership of the property and beginning the eviction process. Fortunately, there are still several options available during the pre-foreclosure stage that can help homeowners avoid losing their home entirely.
Pre-Foreclosure Options for Homeowners
If you’ve fallen behind on your mortgage, your lender may send you a “notice of default,” which essentially means you haven’t made payments for the last 90 to 180 days. Don’t panic—you still have options.
Here are a few strategies to consider:
- Refinance Your Loan
If your mortgage is “above water” (meaning your home is worth more than what you owe), you may be eligible to refinance for a lower monthly payment. Reach out to a trusted Marion County mortgage broker—or feel free to contact us, and we’ll gladly connect you with someone reputable. - Sell to a Local Real Estate Investor
If refinancing isn’t an option, selling your home quickly might be. We buy homes in Marion County and may be able to make a fast, all-cash offer. In many cases, we can close in as little as 7–14 days, help with any back payments, and take the stress out of the selling process. - Short Sale
You can request that your lender approve a short sale—selling the home for less than what you owe. The bank may agree to this in order to avoid the costly foreclosure process. Keep in mind, in some cases, you may still be responsible for the difference between the sale price and the loan balance. - Declare Bankruptcy
While not ideal, declaring bankruptcy can temporarily halt foreclosure proceedings and give you time to reorganize your debts. Just be aware that bankruptcy has long-term credit consequences and should be a last resort.
The good news is most lenders understand the financial challenges many are facing and are often open to working with borrowers who are proactive and communicative.
The Consequences of Foreclosure
Foreclosure can lower your credit score by 200 to 400 points and may prevent you from qualifying for future loans for up to 7 years. If you’ve received a Notice of Default, it’s crucial to act quickly and responsibly.
If working directly with your lender isn’t leading to a solution, feel free to reach out to us. We might be able to help.
How We Can Help If You’re Facing Pre-Foreclosure in Marion County
- Short Sale Assistance
Submit your information through our website, and we’ll evaluate your situation to see if a short sale might be a viable option. - We Can Buy Your House Fast
We buy homes in Marion County and would love to make you a no-obligation, all-cash offer. Fill out the form on our home page to get started. - Free Guidance & Resources
Have questions? We’re happy to provide honest, no-pressure answers and resources to help you make an informed decision—at absolutely no cost to you.