So what is pre-foreclosure in Oklahoma???
Many homeowners across America and Oklahoma especially are facing troubles making their monthly mortgage payments.
When a homeowner misses 3-6 months of payments, the bank will issue a warning,. This warning is to notify the homeowner to either pay OR lose their home back to the bank. This warning period is known as “pre-foreclosure.”
Banks usually give three months for the homeowner to become current on payments. Of course, this warning period can vary by bank and situation sometimes.
If a homeowner fails to make the required payments during this pre-foreclosure period, the bank WILL foreclose on the home, taking ownership, and evicting the homeowner in the end. Thankfully, during this stage of the foreclosure process, a homeowner has the chance to take advantage of several options to avoid losing their house.
Pre-foreclosure Options in Oklahoma
If you’re behind on mortgage payments, you’re likely to receive a “notice of default” from your mortgage lender. This document or warning will state that you have not made mortgage payments for the last 90-180 days and if you don’t get caught up, foreclosure is the next step. It’s important NOT to panic.
You have options that can delay or even prevent losing your home:
- If you owe less than what your house is worth you may be able to refinance your current loan to lower your monthly payments. Check with your local mortgage broker… or contact us and we can connect you with a reputable one.
- You may be able to sell your home to a real estate investor (like us!!) – We buy houses all the time in Oklahoma and even ones in foreclosure or pre-foreclosure. We pay cash and buy as-is. You also don’t pay any closing costs. Sometimes, we can even work with the bank to just take over your payments, paying any past payments, and taking over the stress of those payments for you.
- You can contact your bank and ask them to try 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. The banks avoid a long, drawn-out foreclosure process with court costs and attorney fees. You get out of debt and can move on.
- You might be able to declare bankruptcy, which can at the very least buy you more time to pay your debt. Bankruptcy will remain on your credit report for years though, and can cause significant trouble if you ever want to get a loan or even rent a home/apartment.
Banks are very much aware of the widespread financial troubles across the country since the last big crash and they’re open to work with borrowers a lot of the time. You just have to know your options and ask them.
If you’re up front and talk with your lender, you’ll often see that there are multiple options that will allow you to remain in your home, or salvage your credit rating, or sell your house as-is and get out from under the loan/house.
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.
BUT if you aren’t able to find a solution with your lender that works for you… call or text us at 405-673-4901. We may be able to help.
Ways We Can Help If You’re In Pre-Foreclosure
- We can possibly help with a short sale – Submit your info on this website so we can evaluate your situation to see if we can help. Often times, we can work directly with the bank to help negotiate a short sale.
- We can just plain buy your house – We buy houses in Oklahoma 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 – we are here to help whether we get benefit from it (buying a new house) or not. If you have questions, don’t hesitate to call or text at 405-673-4901.
If you are in the spot where you are asking yourself, “what is pre-foreclosure??”… you’ve still got time to fix this situation but don’t wait and sit on it.
Just contact 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.