Understand the Process and Know Your Options
Now that the moratorium has lifted, foreclosures are impacting thousands of individuals and families. PR Newswire reports that “U.S. foreclosure starts increase[d] 67 percent from a year ago” and “Lenders repossessed 7,574 U.S. properties” in Q3 alone. There were 870 foreclosures in Maryland and 618 foreclosures in Virginia during this period.
At ZVestors, we have helped homeowners avoid foreclosure in Maryland and Virginia. Our best practices for managing this financial hardship are included here, but you can also call and speak to one of our team members any time at 703-259-0570 to get input on your specific case.
What is Foreclosure?
If a homeowner takes out a bank loan or mortgage on their property, this is a secured loan. That means that if the homeowner stops making payments on the loan, the bank can seize that asset and resell it to recoup the loss. In other words, if you stop paying for the house, the bank can take it from you. The steps of foreclosure follow.
Failure to Make Payments
When you fail to make your mortgage payment, your lender will warn you that the loan is in jeopardy. This could happen because of a job loss or other financial hardship. Many borrowers learn at this point that they must make payment in full and not a partial payment in order to keep their note current. You also cannot make your mortgage payment with a credit card. With limited options, some homeowners see no choice but to default.
During the pandemic, a moratorium on foreclosures prevented lenders from evicting borrowers who were in default. Now that the moratorium has lifted, they are moving forward with the foreclosure process.
Both because it is an expensive process and because selling the home might not cover the note, banks would prefer not to foreclose on a property. It is therefore very important that you contact your lender as soon as possible to discuss your options, even if you are not sure how you can make payments in the near future. There are specialists who work with borrowers in this situation every day.
You can read a helpful, in-depth article from Zillow on the foreclosure process here.
Public Notice of Sale / Notice of Default (NOD)
If you miss payments for more than a month or two, your lender will send you a letter notifying you that your loan is in default. Sometimes this notice will be attached to the front door of your property. Depending on your state, you will have a set time to repay the loan in full before your forfeit the property. After that time elapses, the lender will be free to resell your property.
Pre-foreclosure
Before a property is foreclosed upon, there is a period in which a borrower can pay off the loan by an alternate route.
This is where ZVestors comes in. ZVestors will buy your home in what is called a “short sale.” By making an agreement with your lender, ZVestors can pay off the mortgage and help you avoid the devastating financial consequences of a foreclosure. You can read more about short sales in this article from Rocket Mortgage .
Auction / Home Sale
If a borrower cannot find a short seller, the lender will put the property up for auction. The borrower can still enter into a short sale at this point. If your property is going to be auctioned off soon, you can usually make a short sale deal up to the time of the actual auction. To be sure about your specific case, call ZVestors at 703-259-0570 and speak to a specialist.
If a property does not get purchased at auction, the lender will usually list it for sale with a real estate agent. If you are interested in purchasing a foreclosed property, you may be able to get a good deal on it. For more information on purchasing foreclosed properties, check out Foreclosure.com
Call ZVestors
Before your property is foreclosed, call ZVestors to discuss your options or request an online quote at www.zvestors.net. We often arrange movers and other helpful perks for our clients because we know how stressful a foreclosure can be.
Read more about working with ZVestors in our blog post “The Basics of Selling to a Real Estate Investment Firm”.
About ZVestors
ZVestors is a real estate investment company that buy houses for cash, as-is. ZVestors will make an offer to buy your house for cash if your property is in the DC metro area, Maryland or Virginia. We are committed to making the process of selling your home simple and straightforward, and our buying agents take building relationships with clients seriously.
The buying agents at ZVestors can give you honest, reliable feedback on your home’s value. Call (703 259 0570) or email (info@ZVestors.net) us today. There is no pressure, no listing fee, and our team is happy to build your offer right away.