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.
It doesn’t matter what is the reason for why the client starts to lag on payments because from that point, it’s set. What the lender will do first is file for a 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. Simply put, pre-foreclosure is the homeowner’s grace period to settle whatever issue they have in their home.
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 duration of grace period will vary depending 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. When the property entered pre-foreclosure, there are actually numerous ways that homeowners could do in avoiding foreclosed property and be sold by their 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 example that the homeowner can’t produce the money needed in settling the default amount, the property would 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. 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. By selling the house, you’re sure to get reasonable price for 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 because of the fact that by doing so, it lets them to sell the house as fast as possible.
For sure, you can counter the foreclosure of your house but wouldn’t it give you peace of mind if you don’t have to worry about such?