The 3 Stages of Foreclosure in Lancaster, PA

The word foreclosure can be extremely difficult to hear as a homeowner. If you’re struggling to make payments and a lender is considering foreclosing on your home, the feeling of uncertainty surrounding your financial future can leave you feeling lost, alone, and scared.

If my home is foreclosed on, what will happen to my possessions and my family? Where will I live? Is there anything I can do to prevent it?

Thankfully, when you know more about how the foreclosure process works in Lancaster, you’ll be better able to prevent a foreclosure from changing your life.

In this article, we’ll look specifically at three stages of the foreclosure process:

  • The Pre-foreclosure Period
  • Foreclosure
  • The Aftermath of Foreclosure

When you understand the legal process of foreclosure, you’ll be able to better plan in advance to avoid a foreclosure changing your life.

The Pre-foreclosure Period

Before a lender enters foreclosure proceedings against your Lancaster home, there is a period of time in which the lender must communicate with you that they are about to take action toward repossessing your home. This is known as the pre-foreclosure stage.

As a homeowner struggling to make your payments, the pre-foreclosure stage is critical. It’s the best time to take action to save the investment you made in your home!

During the pre-foreclosure stage, your lender will communicate your that you are behind on your payments. Rather than ignore their letters, you need to take immediate action to avoid a foreclosure. If you are able to negotiate with your lender to make up your late and missing payments, you should do so immediately.

On the other hand, you may be in a position where you are unable to make up missing payments on your mortgage. Perhaps your financial circumstances have changed, and you have lost a critical source of income. If you know you won’t be able to stop foreclosure proceedings by making up what you owe, one option is to try to find new financing. Depending on your specific situation, you may be able to find another lender who may offer you a payment plan you can afford.

However, you also have the option of selling your home directly to a buyer. Awakened Properties LLC offers guaranteed closing dates within a few days. Selling your home can give you the peace of mind that your house won’t go into foreclosure and ensure that you’ll receive a fair cash value for your property.

Property Being Flipped in Lancaster PA
You can sell your property in as-is condition so you don’t have to pay for repairs yourself.

Foreclosure

A foreclosure is a formal, legal action taken by a lender to collect the debt owed on a property through a mortgage. A lender can pursue a foreclosure when a borrower misses a predetermined number of payments.

When a bank or other lender begins to foreclose on your home, you have a very limited time to act before you lose your home. Although you can keep living in your house until the foreclosure is finalized, you’ll need to find a new residence or face eviction. When the foreclosure is finalized, you’ll losing thousands of dollars in value from your home and could be left without a place to live.

Even if your house is in foreclosure, there may still be time before the foreclosure is finalized. Professional, local real estate investors like Awakened Properties LLC are experienced in working with sellers whose Lancaster homes are in foreclosure. Because Awakened Properties LLC buys houses in as-is condition, you can be sure that you’ll receive a fair offer that can keep the bank from finalizing its foreclosure on your property. Since there is no time to waste when your home is in foreclosure, Awakened Properties LLC will act quickly to close on your home while saving you the time and expense of offering your home through a conventional real estate agent.

The Aftermath of a Foreclosure

The aftermath of foreclosures in Lancaster can be more far-reaching than you realize. A foreclosure will seriously impact your creditworthiness in the eyes of future lenders. Foreclosures remain on your credit history for seven years and have a very high impact on your credit score. A foreclosure in your credit history will increase amount of interest you will pay on future credit and can often greatly damage your ability to obtain housing and even certain jobs.

When the bank sells your home at auction, you are eligible to receive any equity that remains after the sale. Unfortunately, a low sale price on your home and late fees owed to your lender will diminish the amount of money you’ll receive. When you account for the expenses of the foreclosure that you are responsible for, you could left with very little money from your former home.

Worse still, it’s possible to still owe your lender money after a foreclosure. If you still have debt on your mortgage after a foreclosure, this is called a deficiency balance. Unless you are able to negotiate a settlement with your lender for your remaining balance, a deficiency balance will stay on your credit report until it is fully paid. Even if your debt is forgiven, you’ll have to declare your forgiven debt as income when you file your annual tax return.

Map of Lancaster County, Pennsylvania.
Selling your home to a local team in Lancaster can help you receive the maximum value for your home.

Be Prepared with Awakened Home Buyers

Now that you’ve learned about the stages of the foreclosure process, you should understand why foreclosure on your Lancaster home is costly, traumatic, and damaging to your credit and ability to secure a loan for a future home. If you’re facing foreclosure, you may be filling overwhelmed and scared about the future for you and your family.

Thankfully, there is still hope. If your lender has informed you that you are in the pre-foreclosure period or if your lender has already begun the process of repossessing your home, you can still sell your home now to prevent foreclosure. The trusted, local team Awakened Properties LLC will provide you with a fast, fair offer for your home. Within days, you can close on your home and receive a fair cash payment for the value of the home. Or, if you need more time to find a new place to live Awakened Properties LLC will offer you a flexible closing date, so you can move when you’re able.

Are you interested in learning more about the steps you can take to avoid foreclosure on your home? Download your free guide to find out more. In this guide, you’ll hear about five ways to protect yourself and keep the bank from taking your home.

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