Avoid Foreclosure- Keep Your Credit Reputation Spotless

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July 5, 2013
AVOID FORECLOSURE- KEEP YOUR CREDIT
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REPUTATION SPOTLESS
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Posted by nathenmartin423 in Homes Foreclosure and tagged with Homes For
Foreclosure, Homes In Foreclosure, What is Foreclosure, What is Power of Sale
Foreclosure, for any non-bank entity, is an ugly word. In fact, if it were to be
placed into a thesaurus, and that thesaurus was filed up by the general
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public, then subsidiary versions of the word would be- displacement,
homeless, bad credit etc... but legaly speaking, what is foreclosure?
Homes Foreclosure
A foreclosure is an action that is the result of a clause initiated into a debt
agreement. Now, every lending agreement, from time immemorial, has 4
components- lender, lendee, the money lent itself, and it's security. The
security itself is a material object of value equal to or greater than the
principal debt amount. The idea is that if the person who has taken the debt
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is somehow unable to pay up the amount along with its compounded
interest, the object of security assurance, which has been kept with the
July 2013
party LENDING the money, wil be instead used to recover the money. In
June 2013
the same sense, the word foreclosure of a property implies that if the said
property were the security for the loan taken- as is a common practice,
when taking a loan, especialy for buying the home itself- then in the event of
non-repayment, the bank can possess the property and sel/auction it off to
a buyer of its choice on the open market.
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For homeowners, the time leading up to foreclosure itself is one of distress-
one knows that the sword is looming above one's head. The time ahead wil
be one of displacement- for the family, and further expenditure, to acquire a
new home. But another looming issue is that of credit history. You see, if
your house gets foreclosed, the bank wil recognize you as someone who
couldn't pay back his debt. Banks maintain an unofficial list of such people- a
list that they share among themselves. So a foreclosure may batter your
chances to get more credit from any other local bank. From a business point
of view, this would further harm your prospects of economic recovery. Just
sitting around waiting for a foreclosure would be like surrendering your arms.
W hat is needed is to find an alternate solution. How? Beat the bank in its
own game- that's how.
Homes for foreclosure are auctioned off by the bank to recover the debt.
So, think different. If you know that your foreclosure date is approaching,
and circumstances wil largely prevent you from being able to pay up, you
can initiate a distress sale. This is a quick step manoeuvre, which involves
you doing what the bank was going to do anyway- sel your house
YOURSELF. W hat difference it makes, one might ask.
Wel, first of al, since the bank never got its hands on your house, your
credit history wil stay unblemished, giving you access to further credit. And
unlike in the foreclosure case, if the said auction or sale actualy throws up a
profit, you can keep the profit for yourself. This combined advantage wil get
the loan off your back and give you access to some extra funds for a
`recovery' exercise.
You can have professional help in the manoeuvre- there are websites that
aid one one in the process of looking for distress sale buyers. Distress sale is
a very time constrained operation- makes sure you initiate sale before the
bank initiates foreclosure proceedings. The above websites wil help you
quickly find buyers or investors.
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