Avoid Foreclosure Through Pre Foreclosure
It’s a sad truth but tons of Americans and people worldwide are losing their property as a result of foreclosure annually. Some lenders aren’t diligent to check the person’s ability to make repayments and others simply don’t care. Of course, there are circumstances wherein there’s a sudden turn of events towards a person’s life which leads to their inability to pay for their mortgage.
Regardless of the cause for the client lagging on payments, the process from that point there on is set. What the lender will do first is file for a public default notice. This will then initiate the foreclosure process and it’s also at this point that the property would enter the pre-foreclosure stage. Simply put, pre-foreclosure is the homeowner’s grace period to settle whatever issue they have in their home.
The homeowner is warned that they are in default and have to take actions to solve it. But at this point onwards, the lender couldn’t claim the property back and sell it to recover their expenses. Depending by the state laws, the length of grace period is going to vary. Some states have a grace period lasting for 6 months but in most cases, the grace periods are shorter than this. Right after the property has entered pre-foreclosure, there are numerous ways that homeowners can avoid facing foreclosed property and be sold by the lender. And two of the most common options are discussed in the next paragraphs. If you want to learn more about it, I suggest you to keep on reading.
Number 1. Pay off the default – if for instance that the homeowner can’t find the cash to settle the default amount, then the property will be removed from pre-foreclosure. It will be smart of you to take a personal loan in repaying the debt in case that the default amount is modest and it’s cause by a temporary problem. In case that the problem is ongoing, then this might open up more issues for the homeowner.
Number 2. Sell the house – this is a bit more drastic move but probably, it’s the best solution that you can do if you can’t meet the repayments. By selling the house, you as a homeowner can get reasonable price for it. It is never a smart move that you wait for the lender to sell the house because they are going to sell it in a lower price in an effort to get rid of it. This is because of the fact that by doing so, it lets them to sell the house as fast as possible.
Yes it is true that there are many ways that you can do to prevent foreclosure but wouldn’t it be great if you don’t have to reach that point.