Pre-foreclosure in New York City, as in other locations, refers to the period during which a property owner has fallen behind on mortgage payments, but the property has not yet been taken back by the lender or sold at auction. It’s essentially the stage where the property is at risk of foreclosure but hasn’t yet reached that point. During pre-foreclosure, the homeowner still has the opportunity to resolve the delinquency by catching up on payments, negotiating with the lender for a loan modification or repayment plan, or selling the property to avoid foreclosure.
In New York City, the pre-foreclosure process typically involves several steps, including the lender issuing a notice of default or a lis pendens, which is a public notice that a lawsuit has been filed concerning the property’s ownership. After receiving such notices, the homeowner has a certain period to address the default and prevent foreclosure proceedings from advancing further.
During pre-foreclosure, homeowners may seek assistance from housing counselors, attorneys, or real estate professionals specializing in foreclosure prevention to explore their options and determine the best course of action to avoid losing their property. It’s a critical time for homeowners to act decisively and seek solutions to resolve their financial difficulties before foreclosure becomes inevitable.
So what is a pre-foreclosure in New York City anyway?
Many homeowners across America and New York City 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 sometimes.
If a homeowner fails to make the necessary payments, the bank will foreclose on the home, assuming ownership, and evict the homeowner. Thankfully, during this stage of the foreclosure process, a mortgage holder has the opportunity to take advantage of several options to prevent losing their home.
Pre-foreclosure Options for Borrowers
Exploring Pre-foreclosure Solutions for Borrowers
If you’ve fallen behind on mortgage payments, you may receive a “notice of default” from your mortgage lender, indicating that you haven’t made payments for the last 90-180 days. It’s important not to panic; instead, explore your options to address the situation and avoid losing your home:
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Refinance Your Mortgage: If your mortgage has equity (meaning your home’s value exceeds what you owe), consider refinancing to lower your monthly payments. Connect with a local New York City mortgage broker or reach out to us for a referral to explore this option.
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Sell to a Real Estate Investor: You might be able to sell your home quickly to a reputable real estate investor like us at Maya Buys Houses. By selling for cash, you can use the proceeds to cover back payments or negotiate with the lender. We specialize in fast home purchases in the New York City NY area, often closing within a week or two, alleviating the stress of finding a buyer.
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Request a Short Sale: Contact the bank to discuss the possibility of a short sale, where you sell the home for less than its value, and the bank absorbs the loss. While this may affect your credit, it could be preferable to foreclosure.
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Consider Bankruptcy: Declaring bankruptcy may provide temporary relief and time to address your debt, although it can have lasting effects on your credit score.
Lenders understand the financial challenges many borrowers face and are often willing to work with them. Honest communication with your lender can lead to options that allow you to stay in your home or mitigate damage to your credit.
Foreclosure can significantly impact your credit score and ability to secure loans for several years. Therefore, it’s crucial to diligently explore alternatives if you receive a Notice of Default.
If you’re unable to find a resolution with your lender directly, don’t hesitate to reach out to us. We may have solutions to assist you during this challenging time.”
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 New York City area house – We buy houses in New York City 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 without a catch.
If you’re in the pre-foreclosure stage… you’ve still got time to fix this situation.
Just connect with your bank to see if they’re willing to work with you… or contact us if you’d like to see what we can buy your house for or to tap into our free foreclosure foreclosure resources.