You don’t have to read The Wall Street Journal to know that the sluggish housing market is affecting the economy. More and more Americans are unable to pay their mortgages, and the average rate of loan default is 4-5%. The number of defaults is rising each year, and last year, there was a 12% increase.
Pre foreclosure is the period leading up to the foreclosure of a home and this is a time when many investors can come in and buy the property from the troubled homeowner. Many homeowners that are going through the process of foreclosure are simply in a financial bind due to circumstances beyond their control.
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