Is Pre Foreclosure the Answer to Foreclosure Homes?
So many Americans and people globally are losing their property because 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. What the lender will do first is file for a public default notice. This will then initiate the foreclosure process and it’s also at this point that the property would enter the pre-foreclosure stage. If we’ll look at it closer, pre-foreclosure is gives homeowners the chance to have grace period in settling things.
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 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. 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. 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. 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. You as a homeowner will be able to get reasonable prices by selling 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?