Is Pre Foreclosure the Answer to Foreclosure Homes?
Almost every year, there are tons of people worldwide who are facing foreclosure. Some lenders are not diligent enough to check the ability of the person to make repayments whiles others just 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. 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.
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. There are some state laws that have grace period which last for 6 months but some states 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. 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 instance that the homeowner can’t find the cash to settle the default amount, then the property will 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. 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’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 because of the fact that by doing so, it lets them to sell the house 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.