What is a Pre-Foreclosure in Baltimore County MD?

How Does Pre-Foreclosure Differ from Foreclosure

Many homeowners across America are struggling to pay their mortgage. 

With thousands of homes poised to go into foreclosure, it’s important for mortgage holders to understand what pre-foreclosure is.

As buyers of foreclosures, we can help you understand and navigate the foreclosure process.

So What is Pre-Foreclosure?


When a homeowner misses 3-6 months of mortgage payments, their lender issues a notice referred to as a “notice of default.”


This notice serves as a warning to notify the homeowner that they must make their mortgage current or risk loosing their home.


This period is known as “pre-foreclosure.”


After issuing this notice, mortgage lenders typically provide three months for the homeowner to bring their mortgage current. Of course, this timeline will vary slightly depending on the lender and situation.


If a homeowner fails to make the necessary payments during the allotted time, then the bank will begin the foreclosure process. 


When a bank forecloses on a home, they evict the owner and assume ownership of the house.


Fortunately, during the pre-foreclosure process, a homeowner has several options to prevent their home from being foreclosed on.

Pre-Foreclosure Options for Maryland Borrowers

Have you received a “notice of default?” If so, 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, lowering your monthly payments. Check with your mortgage broker to see if you can refinance your mortgage.
  • You may be able to quickly sell your property to a real estate investor that’s reputable in Baltimore County MD like us at Creo Home Buyers.

  • , 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 Baltimore County MD 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.

Leave a Comment

Your email address will not be published.

Want to See How Much You Can Get for Your House?