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What is a Pre-Foreclosure in Houston?

With millions of homes across the country going into foreclosure, it’s important for both buyers and mortgage holders to understand the process.

So what is a pre-foreclosure in Houston anyway?

Many homeowners across America and Houston are facing difficulties making their monthly mortgage payments.

When a homeowner misses 3-6 months of mortgage payments, the lending institution will issue a warning, notifying the homeowner to pay or lose their home. This period is known as “pre-foreclosure.”

Banks and mortgage lenders typically provide three months for the homeowner to become current.  Of course this number can vary by bank and situation sometimes.

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 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 90-180 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.  Check with your local Houston mortgage broker… or contact us and we can connect you with a reputable one.
  • You may be able to quickly sell your home to a real estate investor that’s reputable in Houston like us at Hero Homebuyers, using the cash acquired to pay the months of back-payments owed (or we *may* be able to work out something with the lender that relieves all or part of your back payments.We can buy your Houston TX 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 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.
  • You may be able to declare bankruptcy, which can buy you time to pay your debt. Bankruptcy will remain on your credit report for years, and can cause significant damage.

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 5-7 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 potentially help with a short sale – Submit your info on this website so we can evaluate your situation to see if we can help.
  • We can buy your Houston area houseWe buy houses in Houston 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 713-379-4376
Or, Submit Your Info Here To Get A Cash Offer On Your House >>

fred15r

Fred A. Paskell has served the Houston community for almost 20 years, providing real estate solutions and learning from some of the very best in the business. A native Texan and Army Combat Veteran, Paskell began his career in the commercial real estate sector and has since evolved into a subject matter expert in many aspects of both commercial and residential real estate, including valuation and investment analysis. Throughout his career he has worked for several notable and respected firms including Cushman & Wakefield, CBRE, Mohr Partners and the Newmark Group. On the commercial side, Paskell focuses on Office, Industrial and Retail assets while being purely focused on the investment side of residential real estate. While beginning his college studies at Louisiana State University (and still a big LSU football fan), he earned both his M.B.A. in Real Estate Finance and B.B.A. in Marketing from the University of Houston, cum laude, with honors. Paskell is also a CCIM designee, the pinnacle designation for commercial investment real estate. Fred devoted ten years of his life to protecting our country in the U.S. Army, including two combat tours to Iraq with the 7th Squadron, 6th Cavalry Regiment as an AH-64 Apache Helicopter Crew-chief, completing his service at the rank of Staff Sergeant. He is also an avid scuba diver of over 26 years having reached the levels of divemaster, rescue diver and technical diver. With this passion he enjoys scuba diving and spearfishing on the offshore oil platforms in the Gulf of Mexico in his spare time as well as fishing, playing poker, staying healthy and spending time with friends and family . Paskell also volunteers for several groups serving disabled veterans, including being a member of the Armed Forces Appreciation Committee at the Houston Livestock Show and Rodeo.

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