The last few years have brought unprecedented challenges for many — and many homeowners in the US have struggled to make their mortgage payments. If that’s the case for you, you may have gotten a letter from your lender letting know that your property is in pre-foreclosure. If you don’t take action, you may jeopardize losing your home.
While pre-foreclosure is a foreboding term and a serious situation, it’s important to remember that you have options… and if you’re wondering if you can sell your house in pre-foreclosure, the answer is yes.
Below, we’ll cover all you need to know about pre-foreclosure in Tampa County, as well as what selling a house in pre-foreclosure, looks like so you can get to a better financial situation as soon as possible.
What is pre-foreclosure?
So, what does it mean when a house is in pre-foreclosure? As you probably already know, foreclosure is a legal process where a mortgage lender or bank takes possession of a property because the property owner failed to make their monthly mortgage payments. What is pre-foreclosure? Pre-foreclosure refers to the period of time after you fall behind on your mortgage payments, but before a foreclosure officially starts.
Pre-foreclosure gives the homeowner a period of time to make payments or other arrangements before selling the property. That way, if the home is sold prior to an actual legal foreclosure, the seller can use the funds from the sale to pay back their lender.
How long is a house in pre-foreclosure?
Pre-foreclosure in Tampa County begins when you miss your first mortgage payment. According to Florida state law, your lender must wait 120 days from the time your account is first delinquent to begin the legal proceedings to pursue a foreclosure.
This four-month period is meant to give you adequate time to analyze your situation and consider all of your options. During pre-foreclosure, the homeowner can sell the property, refinance, still make all outstanding payments, negotiate a loan modification, or file bankruptcy.
Florida is a judicial foreclosure state, meaning the lender must file a lawsuit in state court. Therefore, a bank or HOA seeking to foreclose a home must receive approval from a judge.
Can I sell my house in pre-foreclosure?
Yes! Many homeowners don’t realize that selling is an option once they learn of a possible foreclosure on their home. They may think they have to leave immediately or that the home already belongs to the lender.
But as scary as foreclosure may be, one comforting fact is that you retain ownership of your home throughout the pre-foreclosure process. This means you can still make the decision to sell your home before the foreclosure happens. In fact, you have the opportunity to sell your home up until the home is sold at auction in a Sheriff’s Sale by the mortgage lender.
Selling a house in pre-foreclosure
One of the primary benefits of selling a house in pre-foreclosure is the fact that it can be a quick process — you can get a cash payment upfront. This money can be used to pay the lender everything including missed payments and fees, and you can walk away from the situation relatively unscathed. This option also helps minimize the damage to your credit score and credit history.
That’s why selling to a “we buy houses” homebuyer would be ideal in this pre-foreclosure period. Homebuyers are cash investors that can purchase your home in as-is condition, saving you thousands of dollars on repairs and renovations. They can make you a cash offer for your house within 24 hours and close within as little as 7 days. There’s also no need to list with an agent, meaning no commissions, fees, or hidden costs.
Looking to sell your house in pre-foreclosure? KM Home Buyers can help.
KM Home Buyers is a local real estate investment company specializing in making the sale of your home fast and easy.
We purchase properties in cash and can close on a sale in as little as 7 days. To avoid foreclosure and move on with your life quickly, give us a call at 813-213-4884 or contact us online and have a no-obligation offer in your hand in as little as 24 hours.