Foreclosure is a problem that many people have been experiencing right now. If you are one of them, you would be now thinking of a solution for you to stop the foreclosure process immediately. One of the most practical solutions to your foreclosure problem is to sell before foreclosure. There are many reasons why you should sell before foreclosure and here are some of those reasons:
1) If you sell before foreclosure the sales contract will immediately stop the foreclosure process, since what the lender wants is the money that they have loaned you during your mortgage loan agreement. If you sell before foreclosure and your house is already being auctioned, the sales contract will immediately hold the bidding and it will not be sold to anyone at the auction.
2) Another reason to sell before foreclosure is that you could sell your house or your real property for the current market value. This means that when you get to sell before foreclosure you would be able to pay the bank and still have some money for you to save or use for the down payment for your new prospective home. This is hitting two birds with one stone, being able to pay your lender or the bank solves your foreclosure problem, since this is your main reason to sell before foreclosure and having the extra money from the sales of your house or real property is a big bonus.
3) Protecting your credit is another reason why you should sell before foreclosure. If you house or your property has been foreclosed surely this will have a big effect on your credit record. Large points will cause your credit to change dramatically from good to worse. If you have a bad credit then you want to purchase a home or perhaps a car you would be required to make a large down payment and will have higher interest rates than the usual interest rate. Another effect of a foreclosure in your credit is that you will have a difficult time in getting a decent credit card with decent interest rates. Though there are special credit cards for those with bad credit record, however this credit card is more like a prepaid credit card, then the credit limit will not be the same as a normal credit card. So, if you sell before foreclosure you would be able to avoid all these hassles and more importantly you will not get a bad record on your credit since the creditor could not tell if you are currently under the foreclosure process then you would be able to get another mortgage easily if you sell before foreclosure since you will not have a bad record in your credit.
4)When you sell before foreclosure you will not be asked to vacate your previous house immediately, you will be given an ample amount of time to move out. Usually most sales contract will give the previous homeowners 30 or 60 days to move out. This way, the previous homeowners will have time to pack up, how they will transfer their things and furniture, previous homeowners will have time to sort out their next move, make proper arrangements in terms of their new home, and gather their monetary resources.