What is 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. Well of course, there are some situations wherein there is unexpected events that we face making us incapable to pay for mortgage.
Regardless of the cause for the client lagging on payments, the process from that point there on 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 is warned that they are in default and have to take actions to solve it. 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. There are some state laws that have grace period which last for 6 months but some states have shorter periods 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 – 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. If the default amount is just small and that it was just caused by a temporary glitch, it can be worthwhile to take out a personal loan for repaying the debt. If the problem is ongoing, this may just open up more issues for the homeowner.
Number 2. Sell the house – this is a bit more drastic move but probably, it’s the best solution that you can do if you can’t meet 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?