In the recent past, there has been a steep rise in foreclosure in California thanks to the subprime crisis. Hence, people are considering the option of selling off their homes even though losing one’s home can be quite devastating. However, during such a financial quandary, one can have a positive mindset by considering the benefits of considering foreclosure. Going into foreclosure in San Francisco, California can be a good decision if you consider the following points:
1. Foreclosure in San Francisco can be a very good option if you are zero percent money down loan holder. Since there is no equity involved or no money tied to your house, you will not feel a major setback while selling your home.
2. People buy homes for different purposes. Some may buy home taking into account the investment gains that they may achieve in the near future whereas others buy home to live in it. Investors who buy homes keeping in mind financial expectations may easily seek the option of selling the home in the worst case scenario.
3. During a foreclosure, the lender may give a tough time to you to vacate the house as soon as possible. You may ask the lender for some time, however if the lender does not support you, you can go ahead with foreclosure to avoid hassles of facing the problems caused by the lender.
4. In some cases, it has also been observed that the lender stands in no situation to get back to you for more funds once you are done with foreclosure. This can be a welcome relief to you if you are someone who is suffering from financial problems and are finding it very difficult to cope up with the foreclosure pressure from the bank or the lender.
5. Even though you may think foreclosure can be quite devastating, mortgage advisors have a different opinion about it. They have stated that you do not have to go through the process of declaring bankruptcy during foreclosure.
6. Many people have a notion that credit score take a hit if they go for a foreclosure. However, the fact is that going for foreclosure in San Francisco will not actually affect your credit rating because if you are able to keep your finances positive and do regular payments on time, your credit score will soon get back to a decent range.
7. When you are asked to go for a foreclosure by your bank or the lender, you will feel helpless. However, in this situation of crisis, you still have power on your side. First and foremost, you should keep in mind that no bank would like its debtors (homeowners) to go for foreclosure because each foreclosure can cost them nearly $40,000. In such a situation, the homeowners can ask the bank to reduce their mortgage principal with respect to the ongoing appraised values. If you want to retain your home, you will surely will able to do so if you put the pressure on the lender that you will go for foreclosure very soon causing loss to the bank.