Times are tough on the economy nowadays. The prices of goods
steadily increase but you may not be getting enough in return. You may
end up with a pile of debts, eventually. All debts have to be paid and
foreclosure comes as one of your options.

Now, what is
foreclosure? Simply put, foreclosure is a legal procedure through which a
bank, a mortgage group, or a lender or creditor takes possession of a
property (usually a home), to compensate for your unpaid loans and
mortgages. It occurs when your fail to pay mortgages and property loans,
until they build up to a huge amount.

Foreclosure also happens
when you fail to pay property taxes, or when you secure a loan from a
bank using the house as collateral, but fail to pay off the loan on
time. At the end of a foreclosure proceeding, you may lose the rights to
the property foreclosed. On the other hand, you can avoid foreclosure
by filing a court case.

Subprime foreclosure comes as your most
ideal option if you don’t have a good credit record. It involves
properties that are considered to have had a higher credit risk during
the lending process. If you do not have strong credit histories are
usually considered to hold subprime properties, and have higher chances
of experiencing subprime foreclosure on their properties.

Subprime
foreclosure works similarly to other foreclosures, except that in
subprime foreclosure, the primary difference is in the value of the
property. Prime properties, or those owned by debtors with good credit
ratings, have lower risks of going on foreclosure than subprime
properties. Subprime foreclosure can be avoided if you work on improving
your credit records, ensuring that your mortgages are paid in the
process.

Another foreclosure is default foreclosure. Default
foreclosure happens when you default on property mortgages. To default
means you failed to abide by the terms and conditions of the mortgages,
and this is usually the failure to pay. When this occurs, you property
can go on default foreclosure, which yields you a higher chance of
losing your property to default foreclosure. When you receive a NOD (or a
Notice of Default), this means that the lender has to pay off the
mortgage on the property; otherwise, he or she will file default
foreclosure on the property. To avoid default foreclosure, you, as the
property owner, must be able to pay off the whole balance, or as based
on the creditor’s valid demands.

With the economy still volatile
and unpredictable, you should aim for protection from any type of
foreclosure. Protection foreclosure is a method that you should take
time to undertake, especially if you value their properties and the
security it brings to your family. To avoid default foreclosure, as well
as subprime foreclosure, you should make sure of achieving balanced
spending, paying loans and mortgages on time, and having good credit
history and ratings. But the best place for you to start is through
information. Just read through the specifics of the foreclosure types
mentioned and you’ll have a good idea on how to avert foreclosure.