What is Pre Foreclosure?
So many Americans and people globally are losing their property because of foreclosure annually. Some lenders are not diligent enough to check the ability of the person to make repayments whiles others just don’t care. There are circumstances of course wherein there is a sudden turn of events towards the life of a person leading 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. The lender will initially 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. 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. 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. And two of the most common options are discussed in the next paragraphs. 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. 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. 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 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?