Is Pre Foreclosure the Answer to Foreclosure Homes?
So many Americans and people globally are losing their property because of foreclosure annually. 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.
Regardless of the cause for the client lagging on payments, the process from that point there on is set. Initially, the lender is going to 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 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. Some states have a grace period lasting for 6 months but in most cases, the grace periods are shorter 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. Two of the common options available are discussed in the next lines. I suggest that you keep reading if you want to know more about it.
Number 1. Pay off the default – however, the property will be removed from pre-foreclosure in the event that the homeowner wasn’t able to settle the default amount. 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. You as a homeowner will be able to get reasonable prices by selling it. On the other hand, waiting for the lender to sell it isn’t a great idea because the sale price will probably 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.