Avoid Foreclosure Through Pre Foreclosure
Almost every year, there are tons of people worldwide who are facing foreclosure. Some of the lenders simply don’t care about their clients while others aren’t extending their diligent enough. There are circumstances of course wherein there is a sudden turn of events towards the life of a person leading to their inability to pay for their mortgage.
It doesn’t matter what is the reason for why the client starts to lag on payments because from that point, it’s set. What the lender will do first is file for a public default notice. This is going to kick off the process of foreclosure and at the same time, this is the point when it officially starts the pre-foreclosure. Simply put, pre-foreclosure is the homeowner’s grace period to settle whatever issue they have in their home.
The homeowner will be warned that they’re in default and need to take actions in solving it. But at this point, the lender can’t claim the property back and sell it to recover their costs. Depending by the state laws, the length of grace period is going to vary. There are state laws which have grace period lasting for 6 months but most have shorter periods than this. When the property entered pre-foreclosure, there are actually numerous ways that homeowners could do in avoiding foreclosed property and be sold by their lender. In the next lines, you are going to discover two of the most popular options you can take. 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. If the default amount is just small and that it was just caused by a temporary glitch, it can be worthwhile to take out a personal loan for repaying the debt. In case that the problem is ongoing, then this might open up more issues for the homeowner.
Number 2. Sell the house – if all else fails and you can’t really make paying the default amount, then selling your house is the next logical move to make. You as a homeowner will be able to get reasonable prices by selling 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 the lender will offload the property as quick as they can.