What are some of the distinctions between short sales and pre-foreclosures?

A homeowner is frequently given the option of going through pre-foreclosure or selling their home short. Pre-foreclosure is not the same as a short sale. The status of an account is pre-foreclosure.

You are in pre-foreclosure if you are behind on your mortgage payments and the lender has started but not completed the foreclosure procedure. A short sale occurs when a lender agrees to accept less than the full amount due on a property as payment.

It is helpful to evaluate the different aspects of each to determine which one would be most advantageous. Short sales have the following characteristics:

• The homeowner conducts the sale and retains control of the property and the process until the sale is completed

• Short sales typically result in a higher overall credit score than foreclosure

• The home is sold through the normal public real estate market

• Short sales can be difficult to come by—they may not always be available undesirably (short sale approval can often take anywhere from 2-3 months)

Pre-foreclosures have the following characteristics:

• Notice of default is given to the homeowner of late payments;

• The lender initiates the foreclosure process after notice is given to the homeowner;

• The homeowner is still the legal owner of the house;

• The homeowner still has the option of selling the home during the pre-foreclosure stage;

What Happens If There Are Legal Issues During Pre-Foreclosure?

During the pre-foreclosure stage, legal challenges can occur. For example, the pre-foreclosure process may reveal additional debt, like as tax arrears or other problems. Pre-foreclosure can occasionally show title defects and other comparable difficulties, as well as any issues with foreclosure fraud (where your property is wrongly foreclosed upon by a third-party).

These legal difficulties must be resolved before the property can be foreclosed or sold in such instances. This may necessitate extra-legal measures, which can occasionally alter the foreclosure process’ conclusion.

Is a Lawyer Required to Help Me with Pre-Foreclosure Issues?

While pre-foreclosure is a significant issue in terms of property legal status, it usually does not necessitate legal assistance or involvement. The most important thing is to determine whether you can stop the foreclosure process by paying off any outstanding balances.

If you can pay off your balance but your property is in pre-foreclosure, call your pre foreclosure attorney in Rancho to see if they will accept a late payment for the balance you owe. It’s important to remember that your lender has the power to refuse your late payment. The first step in preventing a foreclosure is to call your lender and learn about your choices.

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