Pre Foreclosure in Baltimore County MD – What is it?

How Does Pre-Foreclosure Differ from Foreclosure

Pre-Foreclosure in Baltimore County MD Explained

Many homeowners across America are struggling to pay their mortgage.
 
With thousands of homes bank foreclosures and bank owned homes on the rise, it’s important for mortgage holders to understand what pre-foreclosure is and how to avoid foreclosure.
 
This article will help you understand and navigate the pre-foreclosure process in Baltimore County and throughout Maryland.
 

The information provided on this page is not legal advice, it is purely informational. Please consult with a legal professional before making any decisions regarding a house that is facing foreclosure.

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 stage is referred to 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 pre-foreclosures, a homeowner has several options to prevent their home from being foreclosed on.
 
Below are some options for Marylanders facing foreclosure.

Opportunities for Maryland Borrowers Facing Pre-Foreclosure

Have you received a “notice of default?” If so, it’s important not to panic.
 
There are alternatives to foreclosure available for you to pay off your debt 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 can contact the bank and ask them to permit a short sale. With a short sale, you’ll sell your home for less than it’s currently worth. The bank takes the loss as a tax write-off. Just remember, that with some short sales, you may still be required to pay some of the difference between what is owed and what the house sells for, so this is usually not the best option for most sellers. Additionally, short sales often take several months to complete.
    • You may be able to declare bankruptcy. If approved, filing for bankruptcy will allow you to liquidize your current assets to help pay off your current debt and possibly set up a repayment plan for any remaining debts. A bankruptcy will remain on your credit report for several years, significantly lower your credit score and limit your ability to be approved for a loan for 5-7 years, so bankruptcy should only declared as last resort.

Lenders are well aware that many people in the US are experiencing financial difficulties, and they actually want to assist borrowers in keeping their homes because it can save them money as well.

If you reach out to the bank, they may be able to offer you ways that will allow you to remain in your home or, at the very least, keep your credit score from taking a serious hit.

A foreclosure can have a significant negative effect on your credit score, often decreasing it by 200-400 points. This can make it very difficult to get a loan of any kind for 5-7 years. So if you receive a Notice of Default from your lender, be sure to take action immediately.

 
But if you’ve tried the methods above and have decided to sell your house in Maryland instead… reach out to us.  We may be able to buy your house in Baltimore County or we may even be able to buy your house in St. Mary’s County, or any other county in Maryland.
 
Simply fill out the form below and we’ll reach out to you soon!

 

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