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Stay One Step Ahead: Exploring Pre-Foreclosure Options for Homeowners in Memphis

Foreclosure Options for Homeowners in Memphis

As per the Memphis Investment Properties, in Memphis, there were 42 houses foreclosed on in October of 2022. During that same month in 2021, only 28 houses were foreclosed on. 

That was a 50% increase. Facing the possibility of foreclosure can be a distressing experience for homeowners and it is becoming more common. It may feel like there’s nothing you can do, however, we have good options for you: You have options on your house if it’s going to auction! Yes, as you read,  you can regain control of your financial situation and protect your home without spending a penny. In this blog post, we will delve into the importance of staying one step ahead in pre-foreclosure, and discuss various options available to homeowners.

1. Open Communication with Lenders

To stay ahead of the game, homeowners must be able to identify the Signs of Pre-Foreclosure. The earlier the better, that way you will be able to take swift action to explore your options and prevent foreclosure. The most common indicators are missed mortgage payments, letters from lenders, or default notices. The key is to maintain an open and honest communication with your lender, remember that you’re all on the same team. You always can negotiate your home loan interest rate by explaining your financial hardship, and exploring potential alternatives. Here you can find how you can negotiate a better interest rate and what to do if your lender refuses to lower your rate.

2. Loan Modification and Refinancing:

A loan modification is a change to the original term of your mortgage loan, it doesn’t replace your current mortgage, just changes the conditions of your loan. Most loan modification requires financial documentation that proves you really need it. Some of these documents include:

  • Proof of income
  • Your most recent tax return
  • Bank statements
  • A hardship statement

With most types of refinances, you must get another appraisal before you can close on your new loan. The appraisal ensures the lender that they’re not loaning you more money than your home is worth, then you’ll  attend a closing meeting and sign on your new loan.

3. Short Sales and Their Benefits

Many people going through the Tn foreclosure process want to get out from under that burdensome house and wonder if they can sell the house in foreclosure. Short sales can be an effective alternative to foreclosure, allowing homeowners to sell their property for less than the outstanding mortgage balance. Generally, the sooner you start, the better. You will be able to protect your credit score and avoid foreclosure proceedings.

Can I Sell My House in Foreclosure in Memphis? – How it works

There are a lot of folks in Memphis who have faced foreclosure in the past few years. Since the changes in the economy, a lot of banks have been shifting the way that they deal with foreclosures.
Remember, the bank that carries your mortgage doesn’t want to see your home abandoned or auctioned. The bank stands to make the most amount of money by helping you to avoid foreclosure by selling your property. However, dealing with banks during any part of the foreclosure process can be a huge pain. Over many years of working with banks to help stop the foreclosure process, we’ve learned a few tricks that will help you.

Working With Banks During The Foreclosure Process

  1. Always over-communicate with the bank (but don’t be annoying). Call with updates and show them what you’re doing to get your property sold.
  2. Don’t miss deadlines. If anything will be late, call with advance notice.
  3. Remember that bankers are people too. Don’t be overly dramatic, but explaining your situation and demonstrating your willingness to fix the problems to make it right goes a long way.
  4. Start keeping careful records of every conversation you have with the bank. Nothing counts unless it is in writing. Make sure to keep track of each person you speak with, what they said, and any promises made.
  5. Explore all your options, including short sale, loan modifications, and bankruptcy. Depending on the details of your personal situation, you may be able to dramatically slow down the foreclosure process with enough effort. Each bank has its own policies to help borrowers avoid foreclosure.
  6. Don’t wait. Unfortunately, time is not on your side. The further behind you become on payments, the fewer options are available to you.

While pre-foreclosure can be a daunting period for homeowners, it’s crucial to remember that there are viable options available to regain control and protect their homes. By staying informed, communicating with lenders, and exploring alternatives such as loan modification, refinancing, or short sales, homeowners can proactively address their financial challenges. By staying one step ahead, homeowners can navigate pre-foreclosure with confidence, preserving their homes and paving the way for a brighter financial future.

If you’re looking to sell your Memphis house in foreclosure fast, call us now.

We specialize in helping homeowners in situations including foreclosure around Memphis and the whole state of Tn get out of difficult situations and avoid foreclosure. In certain circumstances, we can negotiate directly with the bank to reduce the amount you owe and (sometimes) even help you walk away from your property with cash. We have a team of experts who can guide you through every step of the way and ensure that you receive the best possible terms.

We buy properties like yours from people who need to sell fast.

Give us a call at 901-450-5179 anytime
or fill out the form over here today! >>

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