Avoid Foreclosure Through Pre Foreclosure
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.
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 initiate the process of foreclosure and it is at this point that the property enters pre-foreclosure stage officially. If we’ll look at it closer, pre-foreclosure is gives homeowners the chance to have grace period in settling things.
The homeowner is warned that they are in default and have to take actions to solve it. But at this point, the lender can’t claim the property back and sell it to recover their costs. 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. 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 – 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. 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. 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 more of a drastic move but this is no doubt the best solution you can have if you can’t really make the repayments. By selling the house, you as a homeowner can 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 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?