The sale of a foreclosed home is an option that many homeowners who have paid back a loan know little about. Foreclosure is a long and painful process for the homeowner. But this is not hopeless. Looking for a solution to pay off outstanding mortgage debts, the question arises: Can I still sell my house in foreclosure?
How does foreclosure work?
Foreclosure begins when the homeowner receives a notice of default after the fourth unpaid payment. The whole process can take from six months to one year or longer, depending on the negotiations between you and the lender.
In an unfortunate exclusion situation, selling your home may be the light at the end of the tunnel. If you decide to sell your home before foreclosure, you can avoid further damage to your credit history. At the same time, financial stress can be eased and you may be able to make a return on equity at home.
Tips on how to sell your home quickly before foreclosure
You must act quickly if you want to try to sell your home before the bank blocks it. The first thing you need to do is examine the sale of homes in your area. Knowing what other homes in your area have recently sold for will help you better determine the price of your own home.
In most cases, homeowners will have to sell quickly and consider giving a starting price lower than comparable housing prices in your area. However, putting your home up for sale is rarely a quick option and can disappear completely if you try to sell your home before foreclosure.
In this situation, the best option is the cash buyer. Buyers of a cash house will buy a house in the condition it is in and it can be closed in just 7 days. Thanks to foreclosure around the corner, you probably don’t have the time or emotional ability to deal with the stress of getting your home ready for the market or waiting for qualified buyers.
Hire a real estate agent
When time matters, hiring a real estate agent should be your priority so that you can find out how much your home is worth. A good agent can do a market analysis to help you predict how much money your home will earn and whether it is enough to pay off your mortgage.
A real estate agent can also negotiate with lenders to reduce the amount they will take in a short sale to save the property from foreclosure.
Short sale to the rescue
Lenders hate exclusion, because even for them they are legal, financial and PR-related problems. That is why some lenders agree on a short sale in which you sell your home for less than everything you owe.
Accepting short selling is a desperate act for the lender. Lenders do not want to waste money on mortgages, but they also do not want to waste time closing real estate, owning and selling real estate.
Other ways to stop exclusion
- Loan restructuring. Some lenders will restructure your monthly payments and allow you to pay back any overdue payments over time. They may also allow you to lower interest rates.
- Ask for your understanding. The lender may agree to temporarily reduce or suspend payments to give you time to resolve short-term financial difficulties
- Search for money. Can you still raise money by selling a car and using public transport? Putting gems?
- Find new ways to save.