Avoid Foreclosure Through Pre Foreclosure
So many Americans and people globally are losing their property because of foreclosure annually. Some lenders are not diligent enough to check the ability of the person to make repayments whiles others just don’t care. Well of course, there are some situations wherein there is unexpected events that we face making us incapable to pay for mortgage.
Regardless of the cause for the client lagging on payments, the process from that point there on is set. The lender will initially file for 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 is warned that they are in default and have to take actions to solve it. If for this, the lender would not have the authority to claim the property and sell it to recover the 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. 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. I suggest that you keep reading if you want to know more about it.
Number 1. Pay off the default – if for example that the homeowner can’t produce the money needed in settling the default amount, the property would be removed from pre-foreclosure. In the event that the default amount is small and that the default was caused by temporary glitch, then it might be worthwhile to take out personal loan to repay 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. By selling the house, you’re sure to 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 due to the reason that the lender will want to offload the property for as fast as possible.
For sure, you can counter the foreclosure of your house but wouldn’t it give you peace of mind if you don’t have to worry about such?