Covid was a crazy time for the market. We saw housing prices soar, and buyer inhibitions fall. In the years following, we’re suffering from the fallout. Pre-foreclosures in Shreveport/Bossier area are climbing steadily as interest rates aren’t sustainable and monthly payments are too high.
So what is a pre-foreclosure in Shreveport anyway?
Facing challenges with mortgage payments is a common issue for many homeowners in America and Shreveport.
When a homeowner falls behind on 3-6 months of mortgage payments, the lending institution initiates a warning for the homeowner to either pay or face the risk of losing their home, marking the beginning of the “pre-foreclosure” period.
Typically, banks and mortgage lenders offer a grace period of three months for the homeowner to catch up on payments, although this timeline can vary depending on the institution and circumstances.
If the homeowner is unable to settle the overdue payments, the bank will proceed with foreclosure, taking ownership of the property and evicting the homeowner. Fortunately, during this phase, there are options available for the homeowner to explore in order to prevent the loss of their home.
Specific Steps in a Pre-Foreclosure in Shrevport/Bossier, LA
In Shreveport, Louisiana, the foreclosure process typically follows a judicial procedure, as Louisiana is a judicial foreclosure state. Below is a specific and detailed outline of the foreclosure process in Shreveport:
- Notice of Default (NOD): The foreclosure process begins when the borrower (homeowner) falls behind on their mortgage payments. After a certain period of delinquency, typically around 90 days, the lender will send a Notice of Default (NOD) to the borrower. This notice informs the borrower that they are in default on their mortgage and provides them with a specified period, usually 30 days, to cure the default by bringing the loan current.
- Lis Pendens: If the borrower fails to cure the default within the specified period, the lender will file a Lis Pendens (legal notice of pending foreclosure) with the parish clerk of court. The Lis Pendens officially notifies the public that the property is in foreclosure and initiates the judicial foreclosure process.
- Foreclosure Petition: After filing the Lis Pendens, the lender will file a foreclosure petition with the parish court, initiating the formal foreclosure proceedings. The petition will include details of the default, the amount owed on the mortgage, and a request for the court to issue a judgment of foreclosure.
- Service of Process: Once the foreclosure petition is filed, the borrower must be served with a copy of the petition and summons by a process server or sheriff’s deputy. Service must comply with Louisiana’s rules of civil procedure, ensuring that the borrower has proper notice of the foreclosure proceedings.
- Response Period: Upon receiving the foreclosure petition, the borrower has a specified period, typically 15-30 days, to respond to the petition. During this time, the borrower may choose to contest the foreclosure, negotiate with the lender for a loan modification or repayment plan, or seek legal assistance.
- Foreclosure Hearing: If the borrower fails to respond to the foreclosure petition or if the court rules in favor of the lender, a foreclosure hearing will be scheduled. At the hearing, the court will review the evidence presented by both parties and determine whether the lender has met the legal requirements for foreclosure.
- Judgment of Foreclosure: If the court rules in favor of the lender, it will issue a judgment of foreclosure, granting the lender the right to sell the property at a foreclosure auction. The judgment will specify the terms of the foreclosure sale, including the date, time, and location of the auction.
- Foreclosure Sale: The foreclosure sale, also known as a sheriff’s sale or auction, is conducted by the parish sheriff’s office at the courthouse or other designated location. The property is sold to the highest bidder, typically for cash or certified funds, and the proceeds are used to satisfy the outstanding mortgage debt and any associated costs of the foreclosure process.
- Confirmation of Sale: After the foreclosure sale, the court will review the sale to ensure that it was conducted properly and that the sale price is fair and reasonable. If the court confirms the sale, ownership of the property is transferred to the winning bidder, and the borrower’s right to redeem the property expires.
- Eviction: If the former homeowner fails to vacate the property voluntarily after the foreclosure sale, the new owner (often the lender) may initiate eviction proceedings to remove the former homeowner from the premises.
It’s important to note that the foreclosure process in Shreveport can be complex, and borrowers facing foreclosure are encouraged to seek legal advice and explore their options for foreclosure prevention or mitigation. Additionally, foreclosure timelines and procedures may vary depending on the specifics of each case and any applicable state or federal laws.
Pre-foreclosure Options for Borrowers
If you suspect you might be behind on your mortgage payments, lookout for a “notice of default” from your mortgage lender. This information is extremely important for you to have in order to plan your next steps.
This document will state that you have not made mortgage payments for the last 90-180 days. It’s important to start planning your next steps:
You have options that can delay or even prevent losing your home:
- Very first thing to do if you are in pre-foreclosure in Shreveport/Bossier is to see If your mortgage is “above water,” (meaning you have equity in your house). If this is the case, you may be able to refinance your mortgage. This can help you with lower payments by extending the mortgage term. Check with your local Shreveport mortgage broker… or contact us and we can connect you with a reputable one. Contact the bank and get your exact payoff. You’ll need that regardless of what you do.
- If you don’t see any way to be able to keep your home, selling your home to a real estate investor that’s reputable in Shreveport like us at Right Time Home Offers, is a good option. We may be able to catch the loan up and stop the foreclosure using a subject-to strategy. Of course, a cash offer is always on the table if that’s something you’re more comfortable with. We can buy your Shreveport LA area home quickly, often in just a week or two, and takes the stress out of trying to find a buyer.
- You can contact the bank and ask them to permit a short sale. In a short sale, you’ll sell your home for less than it’s worth, and the bank will take the loss as a tax write-off. We’ve been very successful in working with homeowners in these situations in both Shreveport and Bossier. If you know you don’t have the equity for a quick sale, reach out and we’ll buy it from you at a short sale.
- You may be able to declare bankruptcy, which can buy you time to pay your debt. Bankruptcy will remain on your credit report for years, and can cause significant damage.
Lenders know many people are having money problems across the country. They’re often willing to talk and find solutions with borrowers. If you’re honest and talk to your lender, you might find ways to keep your home or at least not hurt your credit too much.
Foreclosure can seriously mess up your credit. It could make your credit score drop by around 200-400 points and stop you from getting any kind of loan for 5-7 years. So, if you get a letter saying you might lose your home, it’s important to act fast.
But if you’re not able to find a solution with your lender working directly with them… connect with us. We may be able to help.
Ways We Can Help If You’re In Pre-Foreclosure
- We can potentially help with a short sale – Submit your info on this website so we can evaluate your situation to see if we can help.
- We can buy your Shreveport area house – We buy houses in Shreveport and would love to make you an all-cash offer on your house too. Just fill out the form here to get started >>
- You can ask us questions and we can provide you FREE guidance and resources so you can make a well educated decision. This costs you nothing, there’s absolutely no pressure, no obligation… just free guidance without a catch.
If you’re in the pre-foreclosure stage… you’ve still got time to fix this situation.
Just connect with your bank to see if they’re willing to work with you… or contact us if you’d like to see what we can buy your house for or to tap into our free foreclosure foreclosure resources.