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Essentially, there are four phases in the realm of the foreclosure process: delinquency, default (preforeclosure), Trustees’ sale and REO (real estate owned). Preforeclosure is one phase of the foreclosure process and is the time between being legally notified by the lender of the mortgage being in default and the surrender of the property to the lender. Each state will have a different period of time in the pre foreclosure process ranging from 45 days to just under 15 months. It is important that the homeowner is aware of the legal regulations of their state. ApartmentStores Moving and Relocation can help you understand this process and empower you with information with just a click of the mouse. If you are in the preforeclosure phase, it is time to seriously evaluate your options and to do the evaluating in an expeditious manner. Time is not on your side. Do you want to try and save your house or do you want to sell it and get out from under the mortgage? Once you miss a payment, plan on derogatory marks on your credit report. Should you care? Yes, especially if you ever plan on buying anything else on credit in the future. Your credit future can be impacted for as long as ten years with a foreclosure appearing on your credit report. The prime interest rates you see and read about will not be available to you. In addition to losing your home, many credit card companies will close your account when they find out about a foreclosure. Your insurance rates can also be increased. Future employers also frown upon poor credit reports as they somehow make the correlation your character and credit report. You stand to lose a lot. Weigh your options carefully. Refinancing- If the issues that resulted in your delinquent payments were of a short term nature, and have been resolved, you may be able to refinance the mortgage with your lender or another lender. Consider a possible 2nd mortgage to bring you up to date with the original lender, but only if you can make both payments. Sell the property- If you are unable to arrange additional financing consider selling the property. But do this early in the process to protect your credit rating. Sale of your property in the pre foreclosure time frame will get you out of the loan, but don’t plan on making any money, but getting your mortgage balance paid in full and moving on can make life much easier. But be careful! There is something called a short sale. This is a sale in which the mortgage is not entirely paid in full. A short sale also has tax and legal consequences and the mortgage holder has to agree with the terms. If you find this to be your option of choice, consult a real estate attorney. Bankruptcy- may keep you in your house a little longer, but there are no guarantees that it will be a long term solution for you keeping your home. Consult a bankruptcy attorney and weigh this option very carefully. The key is to respond as soon as you realize that a problem is occurring and seek assistance. Again, doing nothing is an option that will result in you losing your home. ApartmentStores Moving and Relocation is a great resource to help you make sense of all your options in preforeclosure. Make our knowledge work for you.
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