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. Of course, there are circumstances wherein there’s a sudden turn of events towards a person’s life which leads to their inability to pay for their mortgage.
No matter what the cause for client to lag on payments, the process from that point is 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. Simply put, pre-foreclosure is the homeowner’s grace period to settle whatever issue they have in their home.
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. The length of grace period is going to vary as it is determined 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. In the next lines, you are going to discover two of the most popular options you can take. 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. 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. 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. 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.
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.