Why Sales Aren’t As Bad As You Think
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.
It doesn’t matter what is the reason for why the client starts to lag on payments because from that point, it’s set. Initially, the lender is going to file for 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.
This is going to set a reminder to the homeowner that they’re already in default and they should start taking actions. But at this point onwards, the lender couldn’t claim the property back and sell it to recover their expenses. Depending by the state laws, the length of grace period is going to vary. 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. 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 – 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 as a homeowner can get reasonable price for it. It is never a smart move that you wait for the lender to sell the house because they are going to sell it in a lower price in an effort to get rid of it. This is because the lender will offload the property as quick as they can.
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?