subject: What Is A Pre Foreclosure Sale [print this page] Homeowners that are facing imminent foreclosure can save themselves. Foreclosure means loss of home and credit. This is damaging to the professional and the personal future of a person and their family. Homeowners that have missed over 3 or more mortgage payments neednt worry anymore. There is still a way out that can help them definitely. One of the options that can help the homeowner is referred as the pre foreclosure sale.
As the economy has been facing badly, many companies have down sized or simply shut down. This has also resulted in loss of employment for a lot of people. Even if people havent lost their jobs, many have had to take a pay cut. In other cases, many other people face the financial difficulties due to divorce settlements, long term illnesses, and investments gone bust and so on. In other cases, many people have very low credit standing. In many cases, even if the homeowner wants to get another loan or the loan modified, the lender isnt willing to do so.
Faced with such sticky situations, a homeowner can avail of the pre foreclosure sale, which will happen before a foreclosure actually takes place. This is less damaging to the homeowner and they still have a better credit standing. Whats more the lender can even offer them some relocation expenses that can be useful for paying off debts or getting more affordable housing.
In cases where the lender isnt willing to help the homeowner, a pre foreclosure sale is a great tactic to get some money and retain a decent credit record. Foreclosure stays on the credit record for a period of 7 years. Another way to beat the foreclosure could be using the bankruptcy procedure. This isnt advisable for those that dont have a steady income as bankruptcy can also impair the credit report. For those that have been foreclosed or have been declared bankrupt, getting loans for the next 5 7 years can be an uphill task as traditional lenders arent willing to give a loan.
For getting the motion ready, its important to have a real estate agent or realtor that can help with the pre foreclosure sale. Lenders are creditors are also willing to help those homeowner that are actively involved in the foreclosure sale as proceeds from the sale will be helpful to the creditors. Realtors can help the homeowners in getting the right deal and ensuring that the interests of the homeowners are well taken care of. Homeowners arent aware of the legalities and the processes that are involved with performing a pre foreclosure sale.
