What is the sale of a preliminary act?

The sale of a preliminary act is a type of real estate sale that allows the owner to offer real estate for sale before the actual market closure action. Sales approval usually include the provision that the owner who is going to extend the property uses sales revenues to settle as much as possible a disabled mortgage debt. In the event that the sale of preliminary in advance does not create enough income to settle the entire debt, the owner is still considered to be responsible as a difference.

One of the main advantages of preliminary sales access is that it helps to prevent the default loan from closing. Assuming that the sale is successful and the owner is able to sell the property at least enough to satisfy the remaining mortgage balance, is the final result of less damage to the debtor's credit rating. In the best situations, the owner is able to sell the property for more than the remaining balance, paying dots and the rest of the return uses to obtain a certain degree of financial stability.

While laws and regulations differ from one jurisdiction to the other, the sale of a preliminary act usually cannot take place until the loan is in default. As soon as this happens, the creditor and the owner can cooperate to ensure sales and hopefully bring the arrangement to a mutually beneficial solution. In some cases, the owner will be the recipient of the decree from the sale. More often, the creditor receives revenues from the sale of the preliminary offense, maintains the amount necessary to balance the loan balance and any other allowed expenditure associated with the default settings and hand over the rest to the former house owner.

It is important to realize that the use of preliminary defining sales to prevent the racking of a rating credit. Since the loan must be before the sale takes place, it means that the creditor reports the default agencies for reporting loans. At the same time, the sale is still beneficial because the creditor also announces that the balance pThe rentals were paid in full, a factor that helps prevent further damage to the credit rating. This helps to increase the chances that another creditor may open a mortgage financing for consumers as soon as it solves any financial problems that led to the original default value.