Due to unforeseen eventualities, we all had had a rough time now and then in our daily life. As a homeowner, the low and rough times mean we can lose a lot in terms of our investments, and that maybe your home in Philadelphia. If you are in a rough situation and you are unable to make mortgage and insurance payments, then you are about to face foreclosure with your lender if you miss the amount specified on the mortgage documents.

Foreclosures happen to the best of us.

In most mortgage documents, it is stipulated that a foreclosure will only take place if you miss 3-6 payment installments on your loan. As a debtor of the loan company, you have to understand the process of foreclosure. The first step is known as the pre-foreclosure-At this step, and it means that the loan owner has defaulted to repay the monthly installment of the property, and the bank may or may not foreclosure his/her property.

Step 2 Short Sale
In the short sale step, the owner of the home is trying to sell the property before the bank forecloses his property, but you will not reap the maximum profit of your property because the value is short of balance due to the loan. This also depends on the bank; they may or may not accept any offer less than the balance you owe then at this point. But if as a homeowner you can negotiate with the bank and do the short sale for you the better for their credit

Step 3 Foreclosure Auction
At this stage, the bank is trying to recover the most part of the money you owe them from your property in the shortest time possible. The last stage is Real Estate Owned (REO); at this stage, if the home didn’t sell at the auction stage, then the bank repossess the property resales it again.

From the above process, we can say that foreclosure means bank repossessing your Philadelphia house. This will significantly affect your credit score, and the report will also be available for landlords. The foreclose will be on your credit record for seven years or at times ten years before falling off.

Depending on your mortgage terms, you still have time to live in your home even after foreclose. The time frame depends on whether you used the title via a mortgage or the deed of trust. For those who have a mortgage, this process may take 30 days to two years. If you have cleared the pending payments and your loan standing is good at the end of the redemption period, you will rescue your property, but if you are unable to redeem yourself, you have to move out. But for those who took title through the deed of trust are not given the redemption period.

Is a short sale the answer?
As discussed above, there is always an opportunity for a short sale of your house when you realize that you are not at the apposition of making payments as outlined on your loan agreement, and this must happen before the lender files a legal suit against you. This will help you float your property to the market at a price that will satisfy the loan balance or a price closer to it. If you receive an offer for selling your Philadelphia house that the bank will approve, you will be relieved of some credit damages.