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 Danbury anyway?
Selling Your Home During Pre-Foreclosure in Danbury: What You Need to Know
As the housing market fluctuates, it’s common for homeowners to face financial difficulties, leading to missed mortgage payments and pre-foreclosure. In Danbury, Connecticut, the pre-foreclosure process is triggered after a homeowner misses 3-6 months of mortgage payments, resulting in a warning from the lending institution.
As a homeowner in pre-foreclosure, you have several options to prevent the bank from foreclosing on your home, salvaging your credit score and possibly remaining in your home. If you’re looking to sell your home during pre-foreclosure, StateHomeBuyer.com can help you out.
Here are some options to explore:
- Refinance Your Mortgage: If your mortgage is “above water,” meaning you have equity in your home, you may be able to refinance your mortgage and receive lower monthly payments. Check with your local Danbury mortgage broker or reach out to us, and we can connect you with a reputable one.
- Sell Your Home to a Real Estate Investor: Selling your home to a reputable real estate investor like StateHomeBuyer.com can help you quickly acquire cash to pay the back-payments owed. We can buy your Danbury 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.
- Ask Your Bank for 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.
- Declare Bankruptcy: While declaring bankruptcy can buy you time to pay your debt, it will remain on your credit report for years and cause significant damage.
It’s essential to communicate with your lender and explore all options before facing foreclosure. Lenders are willing to work with borrowers, and by being honest and proactive, you may find a solution that allows you to remain in your home or salvage your credit rating.
At StateHomeBuyer.com, we understand the stress of pre-foreclosure and can help you navigate the process. Contact us today to explore your options and sell your Danbury area home quickly and stress-free.
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 Danbury 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 Danbury like us at State Home Buyer, 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 Danbury 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 Danbury area house – We buy houses in Danbury 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.