What Are Foreclosures

Have you ever found your self in the situation when some other fellow decides whether your house will be sold out or not? How will you feel? This will really be a sad situation and you will really find yourself as the loser. I must tell you that this is the situation which is called foreclosure. I will discuss every point like what it is? Why it is performed? What are its harmful effects? And so on.

I must tell you that foreclosure is a very precarious situation to be in. sometime it does happen that you are not able to pay back your loan and the only option left with you is to sell the property and then pay back the loan amount. However sometime it does happen that you the price of your house in the market goes down even below the loan amount. Now paying back the loan amount is not in your hands. The lender waits for some time and then he finally asks whether you can pay back the amount or not. You will have to definitely say that you are facing some problems. However if the lender agrees with you he recommends your property for short sale. Otherwise he lists your name in foreclosure.

Foreclosure is a very boring process and in fact it really affects your status in the society. Many investors are invited for the foreclosure to take place and they are asked to bid. The process of biding does not ends unless the biggest bid is not challenged by anybody. Once the bid is finalized, the property is sold to him/her for the bid amount. However it is not so that the lender does not loses any amount. He too loses some amount. However you are the biggest loser and hence my only advise is that you should somehow avoid foreclosure.

You must be wondering whether what the harmful affects of the foreclosure are. I must tell you that the amount of loss is immense. You just not lose your property; you also lose your credit score and also your prestige. Hence you credibility is really questioned. And you can really understand that this is never good for you.

You must also want to know whether it is easy for you say that you should avoid foreclosure but what is the real process to avoid it? I must tell you that the only way to avoid foreclosure is to give back the money. However there is one more process which can save you from foreclosure and that is what I discussed with you in the second paragraph and that is short sale. You can always explain your bad position to the lender. And believe me that he will really understand your position and he can be ready for short sale.

Hence foreclosure is the evil which you should really avoid.