What is 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. 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.
No matter what the cause for client to lag on payments, the process from that point is 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. If we’ll look at it closer, pre-foreclosure is gives homeowners the chance to have grace period in settling things.
The homeowner will be warned that they’re in default and need to take actions in solving it. But at this point onwards, the lender couldn’t claim the property back and sell it to recover their expenses. The length of grace period is going to vary as it is determined by the state laws. Some states have a grace period lasting for 6 months but in most cases, the grace periods are shorter 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. 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. If the problem is ongoing, this may just 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 due to the reason that the lender will want to offload the property for 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.