Are you in a forced condition thinking about selling a home in foreclosure? If yes, then don’t lose hope. You’re still in line to get a good cash price for your property. Although many homeowners have a misconception that it’s not possible to sell the house in the foreclosure period.
However, the truth is you can sell your property without marketing. The process is smooth yet challenging and might be frustrating as the time is not by your side in foreclosure situations. Therefore, this article covers everything that answers your query of whether I can sell my home while in foreclosure.
What is Foreclosure?
It is important to understand what foreclosure is and how it works to clear all the misunderstood facts. A foreclosure indicates a legal process whereby property ownership shifts from the homeowner to the bank or lender.
It happens when the borrower fails to pay the mortgage payments or loan amount to which he agreed while buying the house. Thus, if a person fails to pay the total loan balance for financial reasons, the house is foreclosed by the bank. However, you need not worry as you can sell a house in the pre-foreclosure period.
How to Sell a Home During Foreclosure?
It’s natural to face situations involving being behind your mortgage payments or financial crises. At all times, you have to chin up and search for possible ways to tackle these conditions. Enlisted below are some effective tips that will assist you in selling your house fast in foreclosure.
1- Finding your House Worth
During the foreclosure process, you have less time, so the sooner, the better to take effective action. Before doing anything else, you should know the estimated worth of your house. It takes less than 2 minutes to find your property’s selling price or worth.
Additionally, the online free home selling offers have made the process easier for sellers. Follow the following steps, and you’ll get the pricing for your house.
- Search for an online home-selling site on Google
- Add all relevant information about your house, including interior and exterior details.
- Follow the instructions, and you’ll get the estimated home value quickly.
2- Calculate your Finances
Among all, the most common cause of foreclosure is unpaid mortgage payments. Therefore, homeowners prefer selling a home in foreclosure as it’s the only option to maintain their credit history and pay off the remaining debt. However, experts always advise carefully calculating all the finances before selling the house.
It can be done by contacting the lender and asking him about the price you’ll receive if you sell the house in foreclosure. Then, look at your recent mortgage payments – usually, they come with late fees if you’ve missed them. Doing so, you’ll get an idea of how much you’ll owe and the estimated sale price of the property.
3- Contact a Real Estate Agent
It is not unusual that selling a house in foreclosure is a daunting task for any homeowner. The best way is to get help from a real estate agent who can assist you with all legal methods. Thus, to proceed with your next steps, contact a home sale expert who can do the house-selling process within a short timeframe.
Having direct consultancy from a real estate agent is beneficial in another way as he keeps close contact with your lender. Friendly communication with your lender is important to get a profitable sale price.
4- The Short Sale Option
For those who want to avoid the foreclosure process, the short sale option is preferable for them. In the short sale, you permit the bank to sell your house at a price less than you owe for your property.
In this way, the bank officials are involved completely in selling your house if it’s in foreclosure. Although the short sale option is less exhausting and can even boost your credit, it has some downsides as well:
- As evident, a short sale sells your house at a lower sale price.
- It is time-consuming and can take a longer period to complete.
- It is expensive, and you might face false credential issues.
How Long Does It Take to Sell a House in Foreclosure?
Like other home sale methods, selling a house in foreclosure takes effort and time – although less time than traditional home sales. However, when the mortgage lender forecloses your house, you have some time to sell your home. This relaxation time is the pre-foreclosure period given to the homeowner.
On average, if you sell a house during foreclosure, it can take from four months to several months, depending on the following factors:
- The state or location of your house
- The condition of your home – whether it needs repair or not
- The price rates in your local market
- Notice of default which is the formal notice homeowner receives from the lender
Choose 3-Step Home Buyer to Sell a House in Foreclosure
Choosing the best real estate agent that can satisfy all your needs is the most difficult thing for a homeowner- especially during the frustrating foreclosure period. Therefore, 3-Step Home Buyer is here to help. With decades of experience selling homes in Florida, we’ve got your back in all situations.
The best thing about 3-Step Home Buyer is it works with an effective 3-step selling process, so you don’t have to put much stress on your brain. Whether your property needs repair, is in foreclosure, or is in any unforeseen situation, our experienced team of professionals will make the best deal for your home within 7 days. Don’t miss the chance, and call us today!