Foreclosure is a scary word, especially if crushing mortgage payments after an accident, illness, divorce, or another tragedy have rocked you and left your finances unstable. If you’re worried about being able to pay your mortgage and the possibility of foreclosure, here’s what you need to know about selling a home in pre-foreclosure and how to sell your house before the foreclosure happens. A pre-foreclosed home sale will have a different set of rules than a normal home sale, which is why sellers need to be on their toes to ensure everything goes smoothly. In fact, many homeowners don't even realize that selling is an option once they fall behind on their mortgage payments and learn of a possible foreclosure on their home. They may think they have to leave immediately or that the home already belongs to the lender.
Homeowners are usually allowed to sell their home prior to an actual foreclosure and the home being sold (either at auction or through a normal listing) If the home is sold prior to an actual legal foreclosure, the seller can use the funds from the sale to pay back their lender. This would usually also include any back interest payments and late penalties. However, in the event the home is sold for less than what is owed, sellers may also have the option of a short sale, depending on their lender and the circumstances surrounding their debt.
Can I sell a home in pre-foreclosure?
Yes! If you’re facing foreclosure, you have the opportunity to sell your home up until the home is sold at auction in a Sheriff’s Sale by the mortgage lender.
A home will be foreclosed upon when a mortgage lender exercises its right to sell a property which the owner has not kept up payments on. The lender gives the homeowner a period of time to make payments or other arrangements before selling the property.
The lender will then auction the property in a Sheriff’s Sale. The notice of the Sheriff’s Sale must be published for four weeks before the auction, during which time the homeowner can sell the property, refinance the property, make all outstanding payments on the property, negotiate a loan modification with the lender, or file bankruptcy.
When is it too late to sell my home during the foreclosure process?
After a foreclosed home is sold by the mortgage lender at auction, the homeowner has a redemption period (typically between six months and a year) to pay the lender in full to retain ownership of the home. So, after the Sheriff’s Sale, unless you pay the mortgage lender all that you owe them, you no longer own the home, and you can’t sell it.
How can I sell my home
pre-foreclosure?
When you’re facing a foreclosure, you have a couple of options for selling your home. You can go the traditional route, listing your home for sale and possibly hiring a realtor. While this is the best way to get the full market value for your home, it can take months, to sell a home this way, and in a pre-foreclosure scenario, and you don’t have that time. There are only a few weeks of notice before the Sheriff’s Sale and a year or less of a redemption period, which would make it hard to sell the house on the traditional market, through a realtor.
However, there are selling options that are quick, easy, and relatively painless—selling for cash to a development company. These companies buy homes that they see great potential in—whether for renovation, the neighborhood, etc.—quickly, for cash.
If your home is facing foreclosure, Easy Outs Homes can help. We purchase properties in cash and can close on a sale in as little as 7 days. To avoid foreclosure, and move on with your life quickly, give us a call at 443-347-3556, fill this quick form or contact us online today.
