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 of the lenders simply don’t care about their clients while others aren’t extending their diligent enough. Well of course, there are some situations wherein there is unexpected events that we face making us incapable to pay for 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. The lender will initially file for 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.
This is going to set a reminder to the homeowner that they’re already in default and they should start taking actions. 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 some state laws that have grace period which last for 6 months but some states have shorter periods than this. As soon as the property entered pre-foreclosure, there are several ways that the homeowner can steer clear of facing a foreclosed property and have it sold by the lender. And two of the most common options are discussed in the next paragraphs. Do you wish to learn more about how you can do this, if so keep 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 – 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’re sure to get reasonable price for it. Waiting for the lender to sell the house on the other hand is not a good idea as the sale price will be lower. This is because the lender will offload the property as quick as they can.
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.