Pre-Foreclosure in Vancouver or Tri-Cities, Washington: What is it, and What Can You do About it?

There are foreclosures happening all across Washington State and the rest of the country. More than ever, this means that mortgage holders and home buyers need to do everything they can to educate themselves about foreclosures and options available.

Pre-Foreclosure in the State of Washington

Anytime a homeowner is having difficulties making their monthly mortgage payments, they are in danger of entering foreclosure. It depends on the mortgage agreement, but most lending institutions issue a warning after 3-6 months of nonpayment. This warning lets the homeowner know that they are in danger of losing their home if they continue to miss payments. Receipt of this warning is commonly called “pre-foreclosure” in the state of Washington.

In most cases, lending agencies like banks will allow 3 months for the Washington homeowner to become current on their mortgage. Keep in mind that this is what generally happens and the specific amount of time will depend on the mortgage agreement and lender involved with the property in which you are interested.

If after this period the homeowner has failed to pay the required amount, the lender/bank will then foreclose on the property. This means that they will assume ownership and evict the homeowner from the home. This may seem like a dire situation, but the state of Washington allows the mortgage holder quite a few options to help prevent them from being evicted and losing ownership of their home.

Options for Washington Mortgage Holders in Pre-Foreclosure

If you’ve fallen behind on your mortgage, you will receive a warning like we just discussed. This is sometimes called a “notice of default” and will be sent by the lending agency for your home (like a bank).

You can expect this warning to document the length of time you’ve missed payments. Receiving such a warning can be rough. But one important thing you should remember is that panicking is not going to help you. Instead, focus on the options available to you because you still have things you can do to prevent your home from being taken from you. Let’s look at a few of these options now:

  • If you have equity in your home, there is a chance you can refinance. This requires your mortgage to be “above water” as investors sometimes refer to it. Check with your mortgage broker if you think you qualify. If you need help locating a reputable broker, let us know and we can help.
  • You can sell your home for cash to a real estate company. The key here is to find someone who is local and reputable. You want someone who will offer a fair amount, and that means they need to know the local market. With the money from the sale, you may be able to pay the missed payments, meaning you can just walk away from the mortgage. We often buy distressed homes in the Vancouver & Tri-Cities area for cash and can help you get money in hand in just a week or two. Give us a call if you want to know more.
  • You can ask your lender to allow you to perform a short sale. There is a chance that you can actually sell the home for less than what it is worth and get your lender to agree to take the loss of the difference because this loss could be a tax write-off. This is not always the case with a short-sale, so it would depend on your lending agency.
  • You can declare bankruptcy. Doing this can buy you the time you need to pay your debt. However, it will remain on your credit for years, causing significant damage anytime you seek to buy a new home.

Don’t assume your lender won’t work with you if you are having problems making payments. Most are very aware that many people across the country are struggling financially. They may perhaps help you avoid ruining your credit rating or even stay in your home if you try to talk with them and work something out. Be honest and stay communicative to ensure your relationship remains a good one.

Remember, undergoing a foreclosure can hurt your credit score by dropping it anywhere from 200-400 points, which could mean you can’t secure a loan for 5+ years. If you’ve already tried to contact your lender and they will not help you, you still have other options, like calling a reputable real estate company in the Vancouver or Tri-Cities area like us.

How We Can Help When You are In Pre-Foreclosure

Don’t just settle and accept a foreclosure if your lender won’t work with you. You have other options by working with a reputable investing firm like us. Specifically, we can:

  • Provide FREE guidance and answers to your questions about pre-foreclosure. The worst thing you can do is make your decisions without researching your options. We can help with that. There’s no cost, no obligation, no pressure to sell, just help from a firm who knows the Washington market and wants to support those who live here.
  • Buy your house in Vancouver / Tri-Cities for CASH. We routinely buy properties from owners in pre-foreclosure to help them get the cash they need to avoid having their credit destroyed. If you want to know what we’d offer for your home, contact us today.
  • Help you with a short sale on your house. Just send us the information through the form on this site and we’ll evaluate your property to see if we can help with a short sale.

Vancouver (360-667-5424) Or the Tri-Cities (509-591-9196)