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 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. 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. Simply put, pre-foreclosure is the homeowner’s grace period to settle whatever issue they have in their home.
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, the lender can’t claim the property back and sell it to recover their costs. 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. 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. If you want to learn more about it, I suggest you to keep on reading.
Number 1. Pay off the default – if for instance that the homeowner can’t find the cash to settle the default amount, then the property will be removed from pre-foreclosure. If the default amount is just small and that it was just caused by a temporary glitch, it can be worthwhile to take out a personal loan for repaying 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 a bit more drastic move but probably, it’s the best solution that you can do if you can’t meet 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.
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?