The best way to handle pre-foreclosure is to prepare for it. Too many people focus on how it affects you instead of what you should know about it. They look at the situation as if they’ve already lost their property, when they actually still have the ability to make choices.

In this article, our foreclosure attorney answers your questions about pre-foreclosure, what to do if you receive a default notice, and more. Let’s go over what you need to do to keep living in your Clayton area home.

Pre-Foreclosure: What Does it Mean?

You’ve likely heard of the term foreclosure, which is when you’ve defaulted on your home loan, so the lender initiates the sale of your home.  Pre-foreclosure, on the other hand, is a bit different.

As you might guess from the name, pre-foreclosure is a step prior to foreclosure, but it means that you still own your home and have the opportunity to catch up on your missed payments.

What Are the Steps of Pre-Foreclosure in Clayton?

There are two main stages of pre-foreclosure: notice of acceleration and notice of default. After this point, you enter into the process of foreclosure which includes the recording of the notice of trustee sale, the actual sale of the property, and eviction.

Loan Default

The process of foreclosure doesn’t begin when you miss a payment or make a late payment on a loan. This is called loan delinquency. While it’s still frowned upon, it’s not a cause for foreclosure as long as you make your payment.

However, defaulting on a loan does start the foreclosure process, because it means you’ve continued to miss your payments or make insufficient payments (don’t pay enough). This typically takes up to 180 days of delinquencies.

Notice of Default

A notice of default is usually recorded by the trustee at the request of the lender. It’s the first legal step toward foreclosure and notifies the borrower that they are in default of their loan agreement. How it affects you depends on what you do next.

What You Should Know If You’re Facing Pre-Foreclosure

Once you’ve received a notice of default, there are three options as far as what to do. First, you can make up your delinquent payments. This is typically in one lump sum.

Second, you can negotiate with the lender. For example, you can ask if they will accept a partial payment to avoid foreclosure. Your third option is to sell the property before the lender moves forward with foreclosure and eviction.

Talk with a Clayton Foreclosure Attorney

What you should know about pre-foreclosure is that it isn’t the end-of-the-road for you and your property in Clayton. If you decide to fight the foreclosure, reaching out to a foreclosure attorney is your best move.

They will explain the entire process from what it means to what to do about it.

Be Prepared if You’re Facing Pre-Foreclosure in Clayton

If you’re facing pre-foreclosure, know what to do, what to expect, and how it affects you. Being prepared won’t make the process easier, but it may help you stay in control.

If you’re feeling overwhelmed and need help, contact us today to talk with one of our experienced foreclosure attorneys in the Clayton area. They can walk you through the entire process and let you know what your options are.