What does a real estate default mean?
According to Investopedia, a default is when a debt, such as a mortgage loan secured by a property, does not get the necessary interest or principal payments. Any failing that a contract requires could be considered a default. This may involve neglecting to make mortgage payments, maintain current insurance, pay other secured obligations, pay real estate taxes, or adhere to other specific contract clauses. Defaults subject borrowers to legal claims and may restrict their access to credit in the future.
Never allow a trustee’s sale, short sale, deed in lieu of foreclosure, or foreclosure proceed without first obtaining legal and tax advice.
After the process is finished, significant mistakes cannot be fixed. As a result, don’t take any advice from a realtor, your neighbor, or an inexperienced lawyer. You should always make informed decisions because this is your life and your future. I don’t say this to scare you; rather, it’s because I’ve seen hundreds of people deal with disastrous consequences that could have been avoided if they had just sought expert legal and/or tax counsel.
Beware of real estate scams
Thousands of frauds are perpetrated on unwary homeowners. Because they are unable to seek legal guidance, many prey on a certain population, such as the low-income or minorities. The best advise anyone can give is to never respond to someone who contacts you in a crisis and offers to “assist” you. Always reach out to well-established companies with a track record of providing high-quality services.
Here is just one example of such greed – “Campos Gets Prison in Arizona Housing Scheme“.