Truth be told, foreclosure can happen to anyone. Life comes at us fast, and sometimes situations become so dire, that we find the bills piling up as the money dries up. If you’re a home owner struggling with payments and facing potential foreclosure proceedings, you have various options. Don’t stress!
At My Tennessee Home Solution, we buy houses across Nashville and beyond.
A Creative Solution to Your Pre-Foreclosure Home Loan Problems
It doesn’t matter if your home is brand spanking new or old and decrepit, if you have a ton of equity or almost none, our team of experts can lend any homeowner a helping hand!
Struggling with making payments or racking up missed payments? Are you simply in a tough financial situation, dealing with potential foreclosure? Tired of banks, lenders, home prices, refinancing, and all of that mess?
Our Home Equity Protection Program is here to help! Learn how the right creative solution to your mortgage balance can help you avoid the foreclosure process today.
The Difference Between the Foreclosure and Pre-Foreclosure Process
You’ve probably heard the ominous term foreclosure when it comes to missing monthly payments and having a large remaining balance, but what is a pre-foreclosure home? Simply put, it is a state in which you, the borrower, still own your home.
Foreclosure is different. In foreclosure, the mortgage lender has a lien on your house. This typically occurs after four months of delinquent payments on your mortgage balance. The mortgage lender then owns your home and can sell it privately or at auction.
If you own a home not yet in foreclosure, however, you have various options. Whether your significant loan balance is in the form of Veterans Affairs (VA) loans, conventional loans, Federal Housing Administration (FHA) loans, or any other loan type, you can still act to avoid foreclosure.
How to Know You’re Facing Pre-Foreclosure
You’ll know in several ways. Being slightly late by 15 days on a mortgage payment is one thing, but if 30 days go by and you haven’t contacted your lender or made a payment, you’ll begin to face issues. Remember, your mortgage agreement permits the banks to take your home if you are unable to pay back an outstanding balance.
So, what does pre-foreclosure mean?
Simple. Here’s how you’ll know your home is being pre-foreclosed on.
A Report from Your Lender is Made
After 30 days, your lender can file a report about the missed payment on your mortgage debt. This will go to credit bureaus. You’ll incur a late fee, and your lender will let you know, at the latest, 36 days following your missed payment.
You Are No Longer Dealing with Your Lender
Typically, 45 days after your home loan payment is due, your ‘case’ will be assigned to a representative. You will talk to the rep, not your lender, about any payment options on your original mortgage and/or current home loans. You may have the option for a loan modification, different monthly payments, and so on.
At the two-month mark (60 days) of delinquency, you could incur another late fee.
You Get a Default Notice
This notice only arrives after you’ve missed three payments on your mortgage loan. Borrowers who receive this notice are granted one month (30 days) to get the loan bought up to date. If you are unable to make the necessary loan payments by that time, you should take immediate action to address your debt.
At the 4 month (120 days) mark, your lender may place a lien on your property. This formally initiates the foreclosure process.
Here’s What You Can Do If You’re Behind on Mortgage Payments
Many lenders allow you to exercise various options if you’re facing foreclosure and struggling to pay your mortgage back. If your mortgage rates and your loan balance are too large, you may be in luck. The following strategies can help you make or change your mortgage payments.

Get a Loan Modification From Your Lender
Mortgages can be hard to pay back when financial situations change. If you lose a job, your income is reduced, you lose a family member, or face other hardship, you may be able to convince your lender to modify your mortgage terms. Many lenders will offer a lower interest rate or different loan duration if you can prove documented financial hardship.
Refinance Your Mortgage
Your mortgage interest rate can become a serious burden, especially in today’s economy. If you want to pay less and have a lower interest rate, you can refinance your mortgage. Assuming you have made payments on some of your original mortgage, your new loan payments will be less. When refinancing, you may also switch to a new mortgage product that is fixed or adjustable, depending on your needs.
Find a New Owner for the Home
One way to avoid foreclosure is through a fast sale of your home. You may even make a profit in the process! Of course, this all depends on the current market value of your home. If that value is diminished, you may be able to get your lender to approve a short sale, which is when your home goes on sale for a purchase price less than your outstanding mortgage.
In cases where you can’t sell the house, modify the mortgage, or get a new mortgage, you may opt to offer the deed on the property. In other words, you give the deed up to the lender and move out. When this happens, the lender formally releases you from your mortgage agreement.
Sell Your Home with an Assumable Mortgage
A house is more than a building or property, it’s a place of intangible meaning. You built up equity, you created memories, and you worked hard to maintain it. Just because you’ve fallen on bad times or need to sell it fast, doesn’t mean you should be punished as a result. If you want to sell your home quickly and make some profit in the process, you may be able to transfer your outstanding mortgage to a buyer.
At My Tennessee Home Solution, we have many creative solutions for sellers in a bind and are happy to take on all kinds of loan types and mortgages. Whether it’s a VA loan, an FHA loan, a USDA loan, or a conventional home loan, your home loan may be an assumable mortgage.
Our equity protection program can help a borrower at all levels of investment and debt.
What Are Assumable Mortgages Anyway?
An assumable mortgage or loan is a mortgage or loan that the buyer ‘assumes’ from the borrower. Buyers may purchase properties and assume their mortgages for various reasons, especially if the assumable mortgages carry lower interest rates than current market rates.
An assumed loan or assumed mortgage can take on more than one loan type. For example, government-backed mortgages, like an FHA loan, VA loan, and USDA loan, are assumable mortgages. A conventional Fannie Mae loan may be an assumable loan if there is an assumption clause in the contract of the mortgage.
How Do Buyers Purchase Assumable Mortgages?
Buyers assume a mortgage from the initial borrower by getting a lender’s approval. If the buyer does not formally notify the lender of the assumption during a sale, the lender can take severe action, such as demanding immediate full repayment on the assumable mortgage.
Once the lender is notified and mortgage payments are transferred to the buyer’s name, the mortgage is assumed. Whether VA loans, FHA loans, USDA loans, or other assumable loans, house loans must meet certain minimum requirements to be assumed.

What are the Assumable Mortgage Requirements for Buyers and Sellers?
The person assuming the mortgage will have to go through a credit report, provide relevant financial information, and show proof of gainful employment.
Be careful if selling with assumable Veterans Affairs (VA) loans. You may be rendered unable to buy another home with VA loans. Part of the balance of the mortgage can get tied up in the sold property, and this can create problems for future mortgages. If the buyer is eligible for a VA mortgage too, you can remedy this issue.
Meanwhile, with an FHA loan, the buyer must meet certain cutoff credit scores. The insurance payments on this mortgage type can only be resolved through refinancing.
If you’re in a bind and facing foreclosure, consult your local and state laws and discuss with a leading area buyer before selling property with an assumable mortgage.
Why An Assumable Home Loan May Be Right for You
As a seller, you may find yourself in pre-foreclosure for obvious reasons. You’ve been struggling financially and don’t have the income to make payments on the property. Perhaps your credit has dropped and interest rates on the mortgage loan are killing you. Maybe you took a risk with that particular mortgage and now can’t foot the bill.
Homeowners have many reasons to sell a home fast, and with an assumable mortgage, it can be significantly easier to find a buyer. There are two main reasons you should consider finding a buyer for your assumable mortgage.
- Streamlined Sales Process – If an old mortgage is locked in at a lower interest rate you may be able to find a buyer quickly. After all, what buyer can turn down a ridiculously low-interest rate in today’s uncertain economy?
- Negotiating Power – Assumable mortgages typically come with lower rates and reduced closing costs. Nobody likes expensive closing costs! As a result, the seller can charge the buyer a higher sales price on the property. A buyer may be more willing to pay this higher price given the built-in advantages of assumable loans.
If you really need to sell your property fast in pre-foreclosure, you can do what is called a subject-to loan. This is attractive to borrowers of all types. With a subject-to loan, neither the buyer nor the seller finalizes a formal repayment agreement with the lender. The buyer simply assumes the loan (and its risk) upon the sale of the house.
Be sure to work with trusted buyers before transacting any kind of assumable mortgage.
Sell Your Home in Pre-Foreclosure Quickly and Profitably
At My Tennessee Home Solution, we understand that pre-foreclosure can be extremely difficult. That’s why we make selling your home simple and fast. With creative financing opportunities, we take on homes with all levels of equity and debt.
We know the banks better than most, which is why we make assuming home loans easy. If you need cash fast for your home, regardless of its condition or your financial situation, My Tennessee Home Solution can help.
Learn about our Equity Protection Program today and sell your home and its mortgage fast!