Pre-Foreclosure
The stage right before foreclosure. Don’t wait too late! Know your options NOW!
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Are you getting delinquent notices? Has the lender already started to threaten foreclosure and call the loan due? Don’t lose your home! You’ve worked too hard! Even if you owe more than what you can actually sell it for, you have options... if you act NOW before it’s too late!
Sometimes we bury our head in the sand when it’s something that we don’t want to deal with and we just hope that it either mysteriously gets better or goes away. This is not one of those times.
It’s perfectly ok to fear the unknown. It’s scary. Will you come home one day to the locks changed? Your stuff out on the curb? Don’t wonder… find out the process and get help with your personal situation. It’s usually not as bad as you think anyway!
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DON’T LET YOUR HOME GO INTO FORECLOSURE! LET OUR KEYS BE THE SOLUTION TO YOUR REAL ESTATE PROBLEMS. CALL AN EXPERT TO HELP YOU NOW!
Pre-Foreclosure is before foreclosure- simply put. Pre-foreclosure is the stage right before the bank takes the house. The lender at this point has sent delinquent notices and notices of default and has filed a NOD-Notice of Default- with the city in which the property is located. Unlike with a car, in the state of VA- if you don’t make payments, and the bank forecloses, the bank now owns it and you can’t just catch up the payments and get the home back. In Virginia, there is no post foreclosure redemption period.
With a car, you miss payments, the dealer or bank repos the car but you may be able to work something out to catch up the payments and get the car back and continue your monthly payments until it’s paid off. With a house, not so much… atleast in the state of VA. If you miss too many payments the bank can call the loan due, file a Notice of Default and ultimately take the home through the foreclosure process… and you can’t catch up the payments to get it back!
Once the lender takes the home back, they’ll usually try to sell it at the courthouse steps in which the new buyer now owns the home or if it doesn’t sell, it reverts to the bank as a Real Estate Owned (REO) property and now the bank owns it.
Keep in mind… each time you are 30 days late, your credit is being hit up so now it makes it more difficult to find another place to live if you are not able to catch up the payments and stay in the home.
There are numerous steps broken down in phases that are taken by the lender before the home actually goes into foreclosure.
Phase 1- Payment Default- At least one missed payment. If after the 15th, no payment and a late fee has been accessed, a Demand Letter is sent out. Usually have 30 days to send in the payment.
Phase 2- NOD-Notice of Default- Sent after 90 days. Borrower is informed that the notice will be recorded and made public record. Lender typically gives another 90 days to settle the debt thus reinstating the loan if paid.
Phase 3 – Notice of Trustee Sale- If no payment after the 90 days of the Notice of Default, notice of trustee sale is recorded and made public record. Lender will start to publish the sale in the local paper according to the state guidelines.
Phase 4- Trustee’s Sale- Home placed for auction usually on the courthouse steps and sold to the highest bidder who then receives a Trustee’s Deed and is entitled to immediate possession.
Phase 5- REO- If not sold at auction or courthouse steps, lender becomes the new owner and then tries to sell through their own means, through the direct use of a real estate agent or through the use of an asset management company.
Phase 6- Negotiation/Eviction- If homeowner is still in the home, usually the new owner will try to negotiate with the occupant (usually previous homeowner) as to a move out date and maybe even offer an incentive like Cash for Keys or Relocation Assistance to help the occupant vacate the home. If the new owner is unable or unwilling to negotiate with the occupant, then an eviction notice may be served and a sheriff brought in to help facilitate the removal of the occupant and property from the home. If you own the home but have tenants that were there and there is a bonafide lease in place, that tenant may have rights according to state and federal law.
Selling your home Pre-Foreclosure Style- You need a specialized agent that is able to juggle the sale of your home and communication with the mortgage company to postpone the foreclosure sale while you find a buyer. Homes in pre-foreclosure need a special type of buyer who may need to get a special type of financing if buyer is not paying cash. Selecting the wrong agent could cost you time and money and even cost your home going into foreclosure.
CALL TODAY TO DISCUSS YOUR SITUATION AND TALK ABOUT YOUR OPTIONS… Find the value of your home HERE…
Once the lender posts the upcoming foreclosure sale in the local paper as required, your name as the owner and the address of the property along with other mortgage information is posted in the local paper for up to 4 weeks. This can be embarrassing as friends, relatives and neighbors may see this info and now know that your home is going into foreclosure.
Virginia doesn’t have a reinstatement period; however, the lender may, at it’s discretion, allow you to reinstate the loan. Pre-Foreclosure can last from 3-12 months or more… depending on the loan type and servicer of the loan.