If you have been struggling to keep up with your mortgage due to unemployment, medical bills or perhaps overwhelming debts, you may live in fear of foreclosure. Foreclosure occurs when lenders decide to essentially cut their losses by taking possession of your home and selling it to gain back what they are owed.
Foreclosure is best avoided because it will result in you losing your home as well as having your credit score substantially lowered. There are several ways to avoid foreclosure if you act early. One of the ways to avoid foreclosure is to go through a pre-foreclosure sale.
What is a pre-foreclosure sale?
The pre-foreclosure period can last between 3 and 10 months. During this time, the property is in the early stages of being repossessed by the lender. If you gain permission from your lender, you may be able to sell the property during this time so that you can avoid foreclosure. This is known as a pre-foreclosure sale.
What are the advantages of a pre-foreclosure sale?
One of the main advantages of a pre-foreclosure sale is the fact that the property owner’s credit score will suffer far less than when going through foreclosure. It may also be possible for the property owner to continue residing in the property until the sale is finalized, and this may help them to start saving so that they can get their finances back on track.
If you are struggling to keep up with mortgage repayments, you should make sure that you investigate all alternatives to foreclosure so that you know your options.