Many people will tell you that one of their dreams is to have a house they can call their own. That is why it can be quite devastating and frustrating to be faced with the possibility that you are going to lose the home you have worked hard to buy to foreclosure. But for owners of properties that are about to become foreclosed homes, foreclosure is not the end of the road. You can still remedy the situation, which means you can avoid the traumatic impact of foreclosures.

Pre-foreclosure Phase:

Once you have defaulted on your monthly mortgage, you will receive a notice of default from your lender. A certain period of time will be given to you to try to come up with a way to pay your arrears. Your options may include a loan restructuring or you can borrow money from your relatives or friends to pay off your debts. Whatever option you choose, the main goal is to prevent from making your property one of the thousands of foreclosed homes that are flooding the real estate market.

The time when you have received a notice of default until the lender moved in to foreclose your home is the pre-foreclosure phase. During this stage, you are running against time as you have to find a way to stop foreclosure before your lender steps in.

If you think that the options to avoid foreclosure presented by your lender will not work for you or if you cannot come up with the right amount to allow you to make your account current within the grace period given by your lender, then you may consider a pre-foreclosure sale.

Selling to Avoid Foreclosure:

Pre-foreclosure selling means you will sell your distressed property before it will be foreclosed by lenders. There are many benefits of pre-foreclosure selling. One of them is you will be able to avoid the stress and trouble of the foreclosure process. Another benefit is you get to save what is left of your credit score. Your credit history may be affected by you going into default, but the damage may not be as disastrous as when you go into foreclosure. Plus, you will have some money that you can use to buy another property, one that you can afford.

Pre-foreclosure selling offers you an option to save your property from being included in the long list of foreclosed homes.