Your home is not only an asset that multiplies its worth at a phenomenal rate but also an emotional investment that a person gets really involved with. However, all the homeowners are not fortunate enough to have their homes safe from the clutches of Foreclosure. Sub prime mortgage crisis brought this demon to light a couple of years ago. It was found that most homeowners did not have enough credential to acquire home and their failure to pay mortgage was just a matter of time.
Government took time to acknowledge the grievous fault and since then it has tried to make the best out of a bad deal. It has given moratoriums and reduced mortgage payments by enhancing the mortgage periods. However, we still have loads of homeowners who have to go for Short Sale or have to witness the scenario of bank foreclosed home.
Foreclosure is the time when the court orders to confiscate a home based on the default notice filed by a lender. It is a legal notice and has its profound base. The court still gives some time to the homeowner to square off debts pertaining to existing mortgage defaults. Even there, it allows concession but a poor response brings the Foreclosure scene close.
However, prior to this, there is a pre foreclosure stage where a troubled homeowner is allowed a grace period to settle the past mortgage dues. This time can vary from 3 months to 6 months based on state specifications. More generally, this time duration does not yield any fruit unless it’s not a chronic deficiency of funds but one that is induced by liquidity shortfall.
It is advisable that a homeowner sells his home himself rather than the banks letting foreclose it. There is a valid point behind such statement. Banks and lenders try to recover their own costs and hence opt for Distress Sale. This does not come up to the target that the home can be bid for if the homeowner takes up the cudgels in his own hand.
- Best Secured Homeowner Loans (debt-consolidation-2u.com)
- Today’s Mortgage Rates Will Not Get Any Lower (2010taxes.org)