Is Pre Foreclosure the Answer to Foreclosure Homes?
It’s a sad truth but tons of Americans and people worldwide are losing their property as a result 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.
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 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. If for this, the lender would not have the authority to claim the property and sell it to recover the costs. The length of grace period is going to vary as it is determined by the state laws. There are state laws which have grace period lasting for 6 months but most have shorter periods 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. Do you wish to learn more about how you can do this, if so keep 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. If the problem is ongoing, this may just open up more issues for the homeowner.
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. 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.
While there are options for you to avoid foreclosure, still it will be recommended that you make your best efforts to not get to this point.
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