Foreclosure, How Did I Get Here?
As a homeowner, if you become incapacitated due to an illness or an accident or losing your job or getting a divorce and now you can no longer commit to making your monthly mortgage payments, your home may be foreclosed. At this point, you will be faced with either losing your house to the bank or selling it cheap to an willing buyer.
An impending foreclosure means that you may potentially lose your home to the bank. Homeowners serviced with a Notice of Default (NOD) from their financiers have 30 to 120 days to remedy the situation before the home is officially foreclosed. During this ‘grace period’, homeowners can consult with a home loan modification expert to find out if they can qualify for hardship assistance from the government or local loan modification companies.
Consult a real estate agent expert in pre-foreclosed homes to advice you on the best options to pursue in terms of pricing, customer sourcing and closing the sale. Such pre-foreclosure sales are mainly done on a cash-only basis; therefore, it is important to know who your target clientele is beforehand.
Alternatively, homeowners can discuss and agree with their respective banks on a short sale process. This will allow the bank to postpone the foreclosure date, as you will try to secure a willing buyer. A short sale can be carried out by a real estate agent since they have a wider pool of buyers.
To get more time to sell your pre-foreclosed home, secure a short term loan and make your defaulted mortgage payments; as you look for a buyer for the home. But be informed that such short term loans may be very expensive.