Is Pre Foreclosure the Answer to Foreclosure Homes?
Almost every year, there are tons of people worldwide who are facing foreclosure. Some lenders aren’t diligent to check the person’s ability to make repayments and others simply 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.
No matter what the cause for client to lag on payments, the process from that point 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. So if we look at it closer, pre-foreclosure is more like giving the homeowner a grace period to settle things.
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. The length of grace period is going to vary as it is determined by the state laws. There are some state laws that have grace period which last for 6 months but some states 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. In the next lines, you are going to discover two of the most popular options you can take. 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. The homeowner has to take quick actions immediately because if not, it will cause more problems in the end.
Number 2. Sell the house – this is more of a drastic move but this is no doubt the best solution you can have if you can’t really make 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 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.