Home Foreclosures

Written by Jill Morrison
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Information on Home Foreclosures

Home Foreclosures occur when a homeowner fails to make Mortgage payments. A homeowner is allowed to be late on a few payments, as long as they are paid soon after along with the late charges they acquire. Home Foreclosures happen when many Mortgage payments have been missed and the homeowner is unable to rectify the situation with payments.

The Foreclosure process does not happen overnight. It can take up to three months. But do not be fooled by this lengthy time period. It is important to take action immediately on Home Foreclosures.

An average of 4% of all homes purchased will be Foreclosed upon. Therefore, Foreclosure is an issue to many. Purchasing Home Foreclosures may be beneficial to both the buyer and the homeowner if the purchase occurs at the right time.

The initial stage of Foreclosure is Pre Foreclosure. Pre Foreclosure is a good time for the buyer and homeowner to both benefit from a sale. However, if both parties do not act fast, the home could reach Foreclosure status and their options would change.

A homeowner is willing to sell in Pre Foreclosure because it will immediately remove all Mortgage debt. The homeowner will then have the Foreclosure removed from their record and their credit score will improve. The homeowner is likely to have an easier time purchasing a home without a Foreclosure on their record.

Home Foreclosures provide excellent opportunities for buyers to save money on their purchase. Buyers may potentially save 20-40% of the market value on the home. In Pre Foreclosure, the buyer also has the opportunity to observe the condition of the home. This option is not available when the home reaches Foreclosure status.

Dealing With Home Foreclosures

If Foreclosure is inevitable, a homeowner may want to consider Foreclosure Loans. A loan can alleviate the problem immediately. However, they can be difficult to obtain. There are various requirements for approval, such as a good credit score and a minimum of 30% equity in the home.

Homeowners can try to research their options and take care of the problem on their own. This can be very time consuming though, and time is of the essence with Home Foreclosures. The most recommended option is using a Foreclosure assistance program. The service will analyze your situation and lead you quickly to the best option for solving your Home Foreclosure problem.

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