The pandemic caused by COVID-19 has financially affected many households. This financial strain has caused people to be unable to afford to pay their mortgages. If you are behind on your mortgage, you may have received a notice from the bank about pre-foreclosure. Or, you may have been doing research online about delinquent mortgages and may have come across the term pre-foreclosure. If you are behind on your mortgage, learning about this term is important. Knowing what this term means, knowing when you are in pre-foreclosure and knowing what your options are can help you to make the best decisions based on your specific circumstances. Here is more information about pre-foreclosure.
What Does Pre-Foreclosure Mean?
Pre-foreclosure basically means that you are behind on your mortgage and the bank is planning on moving forward with the foreclosure process. Typically, most banks and lenders will start the pre-foreclosure process when you are three months delinquent, but some may start it sooner and some may start it later. If you are in pre-foreclosure status, the bank may also be reporting your mortgage late to credit bureaus, which can impact your credit score.
How Do You Know If Your Home Is in Pre-Foreclosure?
Most people who are behind on their mortgage are well aware that they are behind. They know they have not paid their bill, and they may have the lender contacting them via telephone, email and/or postal mail letting them know that their payment has not yet been made. What most people do not know though is when they go from simply being delinquent on their mortgage to being in pre-foreclosure status. Pre-foreclosure status is the first step to a lender foreclosing on your home. This is a legal action, and as such, papers must be filed with the court and then served on you or any other owners of the property. The first paper that is filed with the courts is a Notice of Default. A Notice of Default is informing you and the courts that the mortgage is behind, and payments are due. In the state of Florida, you have 20 days to respond to this notice, or the courts will move forward with a foreclosure.
Can You Stop a Pre-Foreclosure from Becoming a Foreclosure?
You can stop a pre-foreclosure from becoming a foreclosure. There are a few different options that are available to you. The first and easiest option is to simply pay the mortgage amount that is past due. However, if you are not paying your mortgage, you likely do not have the money to simply pay off the balance. Another option is to put your home up for a short sale. You will work with the bank to sell your home quickly, helping both you and the bank out. The third option is to work with the bank or lender to come up with a solution. Some banks can defer payments for a short period of time or add your payments to the back end of the loan, if you can pay mortgage payments going forward. Lastly, you can work with an attorney who may present foreclosure defenses to help you stay in the home for as long as possible and fight the foreclosure proceedings.
When Should You Consult with an Attorney About a Foreclosure?
Once you are served with paperwork showing that the bank is taking legal action against you, you are in pre-foreclosure. Once this happens, you only have a short window to file a response to their legal action before the case moves forward. Because this window is so small, many attorneys ask that you contact them as soon as you get behind on your mortgage and know that you will not be able to catch up. They can then put together a plan of action before your home even goes into pre-foreclosure. If your home has already gone into pre-foreclosure, you will want to reach out to an attorney immediately to learn what your options are and how to proceed.
If you are behind on your mortgage, have gotten a notice of default or a foreclosure complaint, you will want to talk to a foreclosure attorney as quickly as possible. A foreclosure attorney, such as foreclosure attorney Carlos M. Amor, can help you to understand your rights and can help to fight to save your home, if that is what you desire. You have a limited amount of time to respond to a legal foreclosure complaint, so it is important that you act right away if you are served with one of these notices. Contact foreclosure lawyer Carlos M. Amor today to get the help you need and deserve.
