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. 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.
It doesn’t matter what is the reason for why the client starts to lag on payments because from that point, it’s set. Initially, the lender is going to 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. So if we look at it closer, pre-foreclosure is more like giving the homeowner a grace period to settle things.
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 onwards, the lender couldn’t claim the property back and sell it to recover their expenses. 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. 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. Two of the common options available are discussed in the next lines. If you want to learn more about it, I suggest you to keep on reading.
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 – 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 as a homeowner can 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 because of the fact that by doing so, it lets them to sell the house 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.