Homeowners: The Pros and Cons of Pre-Foreclosure Sales
Are you a homeowner who is facing foreclosure? If so, know that just because foreclosure is down the road, it doesn't mean that you have to travel that far. You should know that you do have a number of different options. One of those options starts in the pre-foreclosure stages and is known as a pre-foreclosure sale.
As for what a pre-closure sale it, it is when the home is sold before foreclosure. Often times, it is immediately before a foreclosure auction is set to take place. As for why some homeowners wait so long, they are looking for a reprieve from the lender. Unfortunately, those in poor financial standing are unlikely to get that reprieve. That is why all homeowners should familiarize themselves with pre-foreclosure sales.
As previously stated, not all homeowners are able to receive assistance from their lender. If you find yourself in this position, a pre-foreclosure sale may be the only way to keep your credit in good standing. A foreclosure can negatively impact your credit for years to come. In keeping with credit, some lawyers will have their clients declare bankruptcy to stop foreclosure or hang onto the home. This is also risky.
If you make the decision to sell your home, it is a wise to make arrangements with your lender. A financial lender who knows that you are actively trying to sell your home is more likely to give you time to allow that sale to take place. As for that sale, it can be handled by you or by a realtor. If you are upset about the loss of your home, a realtor is advised. This is because it can be difficult dealing with prospective buyers who seem to have no regard for you or your troubles.
If you use the services of a realtor to help with the sale of your home, you may receive more money. This is because retailers tend to sell homes at or around their assessment value. Although not much may be left over, after paying your mortgage and the realtor, it may be enough to help you make new living arrangements. Since buying a home likely isn't an option, you should have enough for a security deposit and first and last months rent.
As it was previously stated, buyers interested in pre-foreclosure sales aren't always careful with the words they choose. You may have to deal with people who look down on you. Yes, they are usually in the wrong, but you must handle the situation calmly. Unfortunately, there are many misconceptions that surround those facing foreclosure, most of which are not true. Remember to always keep your head held high. As painful as it may be to deal with a 'jerk,' at least you can avoid foreclosure and keep your credit in good standing.
Perhaps, the biggest downside to selling your home, through a pre-foreclosure sale, is the loss of your home. In fact, this is why many homeowners wait until the last minute to okay the sale of their home. It is a decision that many homeowners are uncertain about. Please know that unless you can get your mortgage back to good standing, you will lose your home regardless. A pre-foreclosure sale at least lets you retain a decent credit score, as your mortgage will be paid off and hopefully in full.
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