Avoid Foreclosure Through Pre Foreclosure
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. 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.
Regardless of the cause for the client lagging on payments, the process from that point there on 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 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. Right after the property has entered pre-foreclosure, there are numerous ways that homeowners can avoid facing foreclosed property and be 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 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. 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’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.
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.