Are you falling behind on your mortgage payments? Hoping to avoid foreclosure? You’re not alone. Many homeowners feel overwhelmed when they get a foreclosure notice. The good news is you still have options and can avoid foreclosure. Whether you’re just starting to fall behind or have already received a notice of default, knowing your options can make all the difference.
In the following article, we will explain what foreclosure is, how to stop it, and how companies like Royal Lion Homes can help.
What Is Pre-Foreclosure?
Pre-foreclosure happens when you don’t pay the mortgage. Eventually, in Indiana, the bank must go through the court to take back the property. Finally, at the end of the foreclosure process, the lender will sell the property. Consequently, you have time to act, but the window is short.
When you’ve received a notice of default or a Lis Pendens, you’re officially in pre-foreclosure. However, you still own the property—but the clock is ticking.
Why You Should Act Fast to Avoid Foreclosure
Foreclosure can hurt you for years. Here’s why:
- It lowers your credit score by up to 150 points
- It stays on your credit report for 7 years
- It may lead to big tax bills
- You could lose your home and be forced to move fast
- Emotional stress
However, there is good news! You can still sell your house and avoid foreclosure—if you act quickly.
Ways to Avoid Foreclosure
1. Sell Your House Fast for Cash
When you have equity in your home, selling to a real estate investor is often the fastest and most reliable way to stop foreclosure. Specifically, at Royal Lion Homes, we make as-is cash offers within 48 hours. Subsequently, we can close in as little as 10 days, sometimes even sooner.
- No need to fix up your home
- No agent fees
- We talk to the bank for you
After all, we work on your timeline.
👉 Get a free cash offer here: RoyalLionHomes.com
2. Do a Short Sale
When you owe more than your home is worth, we can help you do a short sale. This means the bank agrees to let you sell the home for less than what you owe. Specifically, we work with homeowners and their lenders, helping you:
- Avoid foreclosure
- Hurt your credit less
- Start over sooner
Banks take time to approve short sales, so call us early if you want to try this.
Helpful link: Is a Short Sale Right for Me?
3. Try “Subject To” financing
Another option is called “subject-to” financing. This means an investor buys your home and takes over your mortgage payments. The loan stays in your name, but you are no longer responsible for the expenses.
- No foreclosure on the property
- Immediately start rebuilding your credit
- Finally, property is sold or refinanced within 12 months
At Royal Lion Homes, we will work with owners to rebuild their credit using “subject to” financing. Firstly, we will catch up on any late mortgage payments. While repairs are being made to the property, we will continue paying the mortgage. Afterwards, Royal Lion Homes will sell the property or obtain a new mortgage. We will pay off your mortgage within 12 months. Subject-to deals are legal and common in real estate investing. They offer a great way to stop foreclosure fast.
Helpful Links: What is a Subject-To Mortgage? A Comprehensive Guide
4. Lease the Home Back
Some investors will let you rent your home after selling it. This is called a leaseback. It gives you time to save money and plan your next move.
Not everyone qualifies, but it’s worth asking about. The investor may have other options for you depending on your situation.
5. We Can Talk to the Bank for You
Royal Lion Homes can talk to your lender for you. We send paperwork, proof of funds, and explain how we can help. Banks often want to avoid foreclosing because it costs them time and money.
Let us help you get the best result.
Specifically, we’re often able to pause or delay a foreclosure while we work together on a solution.
Final Thoughts: You’re Not Alone
If you’re in pre-foreclosure, don’t wait for the bank to make the next move. The earlier you act, the more options you have—and the more likely you are to keep control of your future.
Foreclosure is scary, but you don’t have to face it alone. Whether you want to sell fast, explore a short sale, or try subject-to financing, we’re here to help.
📞 Contact us today for a confidential consultation: RoyalLionHomes.com, 716-391-0717
Helpful Resources
– Indiana Foreclosure Information
– Consumer Financial Protection Bureau
– Federal Housing Finance Agency Foreclosure Information
– Royal Lion Homes – How We Help Homeowners