Pre-Foreclosure in Miami Explained

With millions of homes all over the country going into foreclosure, both buyers and mortgage holders must understand the process. So…

What Is Pre-foreclosure In Miami Anyway?

When a homeowner fails to pay their mortgage for 3-6 months, lending institutions, such as banks, etc. will first issue a warning. This letter will notify the homeowner that they need to pay soon or risk losing their property. This period is known as “pre-foreclosure.”

Many homeowners throughout America and Miami are struggling to make their monthly mortgage payments.

Banks and mortgage lenders will typically provide the homeowner three months to become current on their mortgage. Of course, every bank is different, and this leniency period can sometimes vary depending on the institution and situation.

In a worst-case scenario, the bank will foreclose on the home, evict the homeowner, and assume ownership of the property. This happens only when the necessary payments have not been made. Thankfully, there are several options available to the mortgage holder to prevent them from losing their home during this stage of the foreclosure process in Florida.

Pre-foreclosure Options For Borrowers

If you’re behind on mortgage payments, don’t panic.

You will likely receive what’s called a “notice of default” from your mortgage lender. This document will explain that for the last 90-180 days, you have not paid your mortgage. But it’s not all bad news at this stage.  There are still ways that can delay or even prevent you from losing your home.

Take a look at the following options below:

  1. If your mortgage is “above water,” – meaning you have equity in your house – a bank may allow you to refinance your mortgage. This involves lowering your monthly payments. Check with your local Miami mortgage broker, or contact us and we can connect you with a reputable one.
  2. You may be able to quickly sell your home to a real estate investor. We recommend choosing a trustworthy firm in Miami like us at Sunshine State Buyers. Using the cash acquired from this quick sale, you can pay the months of back-payments owed. Alternatively, we *might* be able to discuss solutions with thSunshine State Buyerse lender that reduce all or part of your back payments. If this sounds like the plan for you, then get in touch. We buy houses in the Miami Florida area and can close quickly, often in just a week or two. We will pay in CASH, and eliminate the stress of trying to find a buyer.
  3. Contact the bank and ask them to permit a short sale. A short sale involves selling your home for less than its worth. The bank will then take the loss as a tax write-off. In some short sales, you may still be required to pay the difference to the bank, especially if the sale price doesn’t equal what is owed on the loan.
  4. You may be able to declare bankruptcy, which can buy you more time to pay off your debt. However, think carefully before considering this option. Bankruptcy can stay on your credit report for up to ten years, causing significant damage.

Lenders are aware of the widespread financial troubles that homeowners are facing. In many cases, firms will work alongside borrowers to find a solution that suits both parties.

Be honest and communicate with your lender. You’ll often find that you can work out a situation that permits you to remain in your home or salvage your credit rating.

We understand that this process can be very stressful. However, you must be responsible and act fast if you’ve received a Notice of Default from your lender. A foreclosure can negatively affect your credit score by 200-400 points. Moreover, you may then be unable to obtain a loan of any sort for 5-7 years.

But if you’re not able to find a solution by working directly with your lender, then connect with us! We may be able to help. Call us on (305) 916-3328!

How We Can Help You During Pre-Foreclosure
  • Potential help with a short sale. Submit your info on this website, and we will evaluate your situation. We’ll let you know as soon as we can if we can help.
  • Are you in Miami? We can buy your Miami house and easily make you an all-cash offer. Check out our website >>> We Buy Houses Miami!
  • FREE SUPPORT AND GUIDANCE – ask us a question. We have plenty of resources available that will help you make a well-educated decision. This is absolutely free! There’s no pressure. No obligation. Just 100% FREE guidance, no strings attached.

If you’re in the pre-foreclosure stage, there’s still time. Just contact your bank to see if they’re willing to work with you…

Or consider contacting us. We can provide you with a quote for your house, and you can tap into our free foreclosure resources.

Want To Discuss Your Pre-Foreclosure Options?
Call our office at (305) 916-3328. A member of our team would love to speak with you.
Or, click here to fill out our short form. We’ll get back to you as soon as possible with a fast, fair ALL-CASH offer on your home.

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David Veras

David Veras was born in Hialeah, Florida and has been involved in Real Estate since February 2019.

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