Pre-foreclosure begins when a lender files a notice of default due to missed mortgage payments. This notice warns the homeowner that legal foreclosure proceedings will begin if the delinquent payments are not resolved.
💡 Good news: If you’ve just received a pre-foreclosure notice, you still have time to take action and protect your home and credit score.
🛑 What Happens If You Don’t Act?
If you don’t pay the overdue balance or sell the home during the pre-foreclosure period, the lender will eventually sell the property at public auction.
However, many homeowners are still able to sell the home before foreclosure officially begins, avoiding long-term financial damage.
✅ How to Avoid Foreclosure
1️⃣ Negotiate With Your Lender
Show that you are serious about keeping your home and open to solutions.
👉 Lenders prefer to avoid foreclosure and are often willing to find a mutually beneficial agreement.
2️⃣ Forbearance
This temporary relief allows you to make reduced or no payments for a set period.
Afterward, you resume regular payments and catch up on the missed balance at the end of the loan.
3️⃣ Loan Modification
Your lender may adjust the terms of your loan to make monthly payments more affordable.
✔️ Example: extending the loan term or adding missed payments to the loan balance.
4️⃣ Short Sale
Sell your property for less than what you owe, with lender approval.
This helps you walk away without the severe impact of a foreclosure on your credit.
🕒 How Long Does Pre-Foreclosure Last?
The timeline varies by state, but most homeowners have between 90 to 120 days from the first notice of default to resolve the issue or reach an agreement before the property goes to auction.
⚠️ Why It Matters
A foreclosure:
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Stays on your credit history for 7 years
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Limits your ability to get approved for new loans
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Makes it harder to buy another property in the future
💡 Pro Tip
Sell your home before foreclosure to:
✅ Maximize your sale price
✅ Protect your credit score
✅ Give yourself a fresh financial start
📞 Need help evaluating your options or selling quickly?
Contact me today for a free, confidential consultation.
📲 786-486-1817 | 📧 info@yalina.us