What is a Pre-Foreclosure in Baton Rouge?

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 Baton Rouge anyway?

Many homeowners across America and Baton Rouge 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, but the government has regulations for lenders that help homeowners like us have the opportunity to get out of our bad situations.

If a we fail to make the necessary payments, the bank will foreclose on the home, take ownership, and evict us. Thankfully, during this stage of the foreclosure process, a mortgage holder can do several things to prevent losing their home or damage their credit.

What is Pre-foreclosure in Baton Rouge

Pre-foreclosure Options for Borrowers

If you’re behind on mortgage payments, the first thing you will get is 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, which usually, you already are aware of. 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 your house is worth more than you owe) you may be able to work with your lender to refinance your mortgage, receiving lower monthly payments.  Check with your local Baton Rouge mortgage broker… or contact us and we can connect you with a reputable one like GMFS Mortgage.
  • You may be able to quickly sell your home to a real estate investor that’s reputable in Baton Rouge like us at BuyhousesBR, 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 Baton Rouge Louisiana area home quickly, often in just two or three weeks, 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. Banks do not love to do this, and you need to work with a realtor who is experienced with short sales. This is your best option if you owe more than the home is worth.
  • You may be able to declare bankruptcy, which can buy you time to pay your debt. Filing bankruptcy legally pauses the foreclosure proceedings, but it doesn’t end them forever. Bankruptcy will remain on your credit report for 7-10 years depending on the chapter you filed, and can cause a massive drop of your credit score.

Lenders are very much aware of the widespread financial troubles across the country and they’re usually willing to work with borrowers.

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 if you’ve received a Notice of Default from your lender, take action quickly!

But if you’re not able to find a solution by working with your lender directly… 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 Baton Rouge area houseWe buy houses in Baton Rouge 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 because we like helping people :).

If you’re in the pre-foreclosure stage, you still have time to fix this situation.

Call your bank to see if they’re willing to work with you, or contact us if you’d like to see what we can offer for your house or to tap into our free foreclosure resources.

Want To Discuss Your Pre-Foreclosure Options? Call Us at (225) 267 7488
Or, Submit Your Info Here To Get A Cash Offer On Your House >>

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