With hundreds of homes in Utah going into foreclosure, it’s important for both buyers and mortgage holders to understand the process. In March of 2017, 1 in every 2041 houses are currently in pre-foreclosure in Salt Lake County .
So what is a pre-foreclosure in Salt Lake City?
Many homeowners across Utah and Salt Lake City are facing difficulties making their monthly mortgage payments.
In Utah, when a homeowner misses 3 months of mortgage payments, the lending institution will issue a Notice of Default, notifying the homeowner to pay or lose their home. This period is known as “pre-foreclosure.”
In Utah, banks and mortgage lenders typically provide three months for the homeowner to become current AFTER the Notice of Default is issued. Of course this number can vary by bank and situation sometimes. I have met people that have gone more than 3 months past the notice of default before the bank issued a Foreclosure Sale Date.
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 3 months 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 + 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 even though you are behind in your payments. Check with your local Salt Lake City mortgage broker… or contact us and we can connect you with a reputable one. In the current market, it is also fairly easy to list your house and get it closed before the 90 pre-foreclosure period is up. This is assuming few repairs need to be done and you start the process quickly. We can help you list your house if that is what you want to do.
- You may be able to quickly sell your home to a real estate investor that’s reputable in Salt Lake City like us at Gary Buys Houses. You can sell to us AS-IS, No Repairs Needed, WE BRING YOUR PAYMENTS CURRENT, and we can give you time to stay in the house while you relocate. We can buy your Salt Lake City Utah 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 LOAN MODIFICATION. In a Loan Modification, you will negotiate with your bank to “modify” the terms of your loan. This includes adding the payments that are behind to the back of your loan, changing the interest rate or changing the length of your loan. Loan modifications are becoming harder to get because most houses have equity in them now.
- You can contact the bank and ask them to permit a Short Sale. In a short sale, you’ll sell your home for less than it’s worth, and the bank will take the loss as a tax write-off. In some short sales you may still be required to pay the difference to the bank if the house doesn’t sell for what is owed on the loan. This is called a Deficiency Judgement. We use an ATTORNEY for all of our short sales to make sure the bank waives their option of a deficiency judgement.
- You may be able to declare bankruptcy, which can buy you time to pay your debt. We work with an attorney that will take the time to answer all of your questions. I make no money for referring our attorney, so please contact me if Chapter 13 Bankruptcy is the option you want to do. I personally think CH13 Bankruptcy is the best option IF you want to keep your house.
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 3-5 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 refer you to a great bankruptcy attorney. We work with an attorney that will take the time to answer all of your questions. I make no money for referring our attorney, so please contact me if Chapter 13 Bankruptcy is the option you want to do.
- We can buy your Salt Lake City area house – We buy houses in Salt Lake City 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 801-382-9199
Or, Submit Your Info Here To Get A Cash Offer On Your House >>
We purchased Johnie and Candy’s house that was in Foreclosure and got them money to move and allowed them to stay in the house for 3 months FOR FREE after the purchase. The house also needed a lot of repairs which were no problem for us.