Stop Mortgage Preforeclosures
Pre foreclosure is the period of time in the foreclosure process between the notice of default and the finalized sale of the foreclose real estate property. Typically after a homeowner has defaulted on their mortgage loan payments over 90 days the lender will publicly file a notice of default. At this time the homeowner has approximately 90-120 days before their home is auctioned away in a foreclosure sale. These 90-120 days also known as the pre foreclosure period and serves as the last chance a homeowner has to save their house. A common approach many homeowners take to avoid foreclosure in this period is to enter into a pre foreclosure sale hoping that a third party will purchase their house and then the borrower can pay off their remaining debt. A short sale is a type of pre foreclosure sale in which the lender allows the real-estate to be sold for less than the full amount of the total loan due and takes the proceeds from the sale and the mortgage loan is forgiven. The third party buying homes on short sale gets a great deal on a house way below the market due to timing. A short sale is rare but in cases such as where the lender is a bank and has many houses on the verge of foreclosure and they don't want to deal with the hassle of getting the house to marketable standards they might choose this as an option.
Unfortunately pre foreclosure sales don't always work and lenders are not so welcoming to a short sale however there are many other solutions to avoid foreclosure in this preforeclosure period.
More Foreclosure Articles - Save Me From Foreclosure | What is a Notice of Default? | Stop Foreclosure ASAP!