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How to sell home fast if you got a foreclosure notice

Updated: Nov 15, 2023

Do you have a house in Harford County, Maryland and surrounds that’s in foreclosure right now? Many people going through the foreclosure process in Maryland and want to get out from under that burdensome house and wonder if they can sell the house in foreclosure. Homeowners in cities like Bel Air, Fallston, Forest Hill, Abingdon, Aberdeeen, Edgewwod, Belcamp, Joppa, Havre de Grace and surrounds have all faced this problem before. The possibility of foreclosure can feel crushing. And when a lender begins the foreclosure process, it can feel like you have run out of options. But you do have several paths that you can take in order to sell your home before being foreclosed on. You don’t have to feel like there is nothing left that you can do in order to save your equity and your credit.  The short answer: yes. The long answer: it’s a little more complicated, but usually you can sell your property prior to foreclosure. Generally, the sooner you start, the better.

Can I Sell My House in Foreclosure in Maryland? – How it works

There are a lot of folks in Maryland who have faced foreclosure in the past few years. Since the changes in the economy, a lot of banks have been shifting the way that they deal with foreclosures.Remember, the bank that carries your mortgage doesn’t want to see your home abandoned or auctioned. The bank stands to make the most amount of money by helping you to avoid foreclosure by selling your property. However, dealing with banks during any part of the foreclosure process can be a huge pain. Over many years of working with banks to help stop the foreclosure process, we’ve learned a few tricks that will help you. Here are some of the things that you can do in order to sell before a foreclosure.

Working With Banks During The Foreclosure Process

  1. Always over-communicate with the bank (but don’t be annoying). Call with updates and show them what you’re doing to get your property sold.

  2. Don’t miss deadlines. If anything will be late, call with advance notice.

  3. Remember that bankers are people too. Don’t be overly dramatic, but explaining your situation and demonstrating your willingness to fix the problems to make it right goes a long way.

  4. Start keeping careful records of every conversation you have with the bank. Nothing counts unless it is in writing. Make sure to keep track of each person you speak with, what they said, and any promises made.

  5. Explore all your options, including short sale, loan modifications, and bankruptcy. Depending on the details of your personal situation, you may be able to dramatically slow down the foreclosure process with enough effort. Each bank has its own policies to help borrowers avoid foreclosure. Talk With Your Lender About Finding A Buyer

  6. Don’t wait. Unfortunately, time is not on your side. The further behind you become on payments, the fewer options are available to you.

We specialize in helping homeowners in situations including foreclosure around Harford County, Maryland and surrounds to get out of difficult situations and avoid foreclosure. In certain circumstances, we can negotiate directly with the bank to reduce the amount you owe and (sometimes) even help you walk away from your property with cash.

If you need to sell a property near Maryland, we can help you.

We buy properties like yours from people who need to sell fast.

Give us a call at 443-616-5486 anytime or fill out the form over here today! >>

If you want to sell your home quickly without going through the traditional home sale process, you have options. You can call our team at Easy Outs Homes. We’ll provide you with a free, no obligation quote on your property. You don’t have to go through the expensive process of repairs or maintenance either–we’ll buy your home as-is, for cash. You can sell on your timeline, and you can go from first call to closing in less than a month. In just a few weeks, you can sell your home and avoid foreclosure. Contact us today and we can get started on helping you sell your property.

The short answer is yes, you can a sell a Maryland house in foreclosure. But, you need to have a signed offer on your house before your auction date. Get started by requesting a free CASH offer in the form below!

Selling A House In Foreclosure Maryland

Facing foreclosure of a property is downright stressful, especially if you’re facing financial hardship due to job loss, divorce, medical bills, or the death of a loved one. While it seems that there’s nothing you can do, you can actually sell your house in foreclosure before it goes to auction.

Selling a Maryland house during the foreclosure process is possible, but the lender and the bank should be informed. In most states, the bank cannot foreclose a property if it has a legitimate offer. The homeowner should prove that such a cash offer exists and arrange for closing as soon as possible.

There are a lot of benefits in selling your property in foreclosure as opposed to letting the bank sell it in an auction. If you want to learn about this and more, stick with us until the end of this guide!

What is Foreclosure Maryland?

Foreclosure means the mortgage company has obtained ownership of your Maryland house through a legal process–in short, the bank repossesses your house. Foreclosure happens when you fail to pay your mortgage, which is a violation of the loan. 

Once a house is foreclosed, the lender then sells it to recoup the property’s losses. This has a number of consequences, including:

  • Home Eviction: The most difficult impact of foreclosure is the loss of a home. It means you may have to start from scratch, including any equity you had already established.

  • Credit Score Damage: If you lost your property to foreclosure, you would find it difficult to get a new house, credit, or even a job.

  • Deficiency Balance: When the proceeds of the foreclosure aren’t enough to pay the entire mortgage, there would be a deficiency balance. The lender may sue you in order to collect this remaining payment.

The Timeline of the Foreclosure Process Maryland

To understand how to sell a house during the Maryland foreclosure process, we must first talk about the foreclosure timeline. Generally, this process has six phases, according to Forbes.

Phase 1: First Missed Payment

When a homeowner misses a payment, the lender could give a grace period of 15 days. If the homeowner fails to pay during the given grace period, they will pay an additional late fee.

Lenders who are more rigid with their contracts may also report the delay in payment to related credit bureaus. 

Phase 2: Default

Continuously missing mortgage payments would put a homeowner into default. Usually, lenders consider a homeowner as default if they fail to pay the mortgage after 30 days. 

Once in default, the succeeding steps will depend on the type of foreclosure process the homeowner is in. It can either be judicial or non-judicial.

A judicial foreclosure process takes place in the state’s court system because the mortgage agreement doesn’t have a “power of sale.” Meanwhile, a non-judicial foreclosure process gives the lender the power to foreclose a property without a court order.

Phase 3: Notice of Default or Foreclosure Lawsuit

If the foreclosure is non-judicial, the homeowner will receive a Notice of Default (NOD) which states how much needs to be paid, including the mortgage, late fees, and even foreclosure fees. The homeowner will be given 90 days to repay what you owe. 

If the amount cannot be paid, the homeowner can ask the lender for a new repayment agreement.

In judicial foreclosure, a foreclosure lawsuit is filed by the lender. The Maryland homeowner must respond to this immediately unless he wants the judge to grant a default judgment in favor of the lender.

Once a response has been made, the case would go to trial and the homeowner can seek legal advice.

Phase 4: Pre-Foreclosure

The time between the issuance of a Notice of Default to the homeowner and the house’s foreclosure auction is called pre-foreclosure.

During this period, the homeowner can pay what is owed or talk to the lender about a possible relief plan or special payment to avoid foreclosure.

If the homeowner doesn’t have enough money to pay or the lender does not approve a new repayment agreement, a good alternative is selling the property. In fact, selling the house during this period is highly recommended.

Phase 5: Notice of Sale

When the homeowner fails to pay what is owed during the pre-foreclosure process, the lender will publish a Notice of Sale in the local paper. The time of the Notice of Sale to the actual foreclosure auction can span from two to three months, but most often, it is shorter.

The homeowner can still sell the property during this period, but obviously, time is of the essence to avoid foreclosure.

Phase 6: Eviction from Home

The homeowner will be issued an order to leave the house once it has been foreclosed. Typically, all the occupants of the property would only be given a few days to vacate it.

If they refuse, the local Maryland authority or sheriff will have to ask them to leave and impound their belongings if they still won't budge.

Can You Sell a House in Foreclosure Maryland?

Selling a house while facing foreclosure has many advantages, and they are as follows:

  • Your credit report won’t have a foreclosure record. Usually, a foreclosure stays on your credit record for seven years. That means you will have difficulty securing loans— a huge problem if you need money for medical procedures, etc.

  • You can buy another property sooner. If you have a foreclosure on your credit history, it would be difficult to apply for a new mortgage. Selling your home would help you avoid this and you will secure new housing right away.

  • There won’t be any deficiency balance. As mentioned earlier, the bank may ask you to pay for a deficiency balance if the proceeds of the property couldn’t cover the mortgage and other fees. If you sell your home during the foreclosure process, you’ll get enough money to pay the mortgage, especially if you hire a great real estate agent.

Note, however, that when you sell your home while facing foreclosure, everyone has to be on board. By this, we mean that if you have a co-owner, the decision should be made by both of you, not just one person.

Also, you have to ensure that you have realistic expectations when you sell your home.

The goal is to pay off what you owe to your mortgage company by selling the house. But if the market value of the property is way less than what you owe, you may still face problems even after the sale. This is when you can explore a short sale. We discuss a short sale later in this article.

How Much Time Do You Have to Sell Your Home Before Losing it to Foreclosure Maryland?

We cannot exactly measure the time you have before you lose your Maryland property to foreclosure because it would depend on several factors such as your loan servicer, the type of foreclosure process (whether judicial or non-judicial), and the state’s specific rules

However, in most cases, it takes six months to a year to complete the foreclosure process. If you can market and sell your home before auction, you have a higher change of receiving a great offer.

How Long Does it Take to Sell a Home in Foreclosure Maryland?

How long it takes to sell a home in foreclosure is similar to the timeline of selling a typical Maryland property. If the real estate market is hot, homeowners can sell their property in a few months or less.

However, you have to remember that the timeline of selling a property is affected by several factors, not just the real estate market in your area.

The state of your property, the neighborhood, the skills of the real estate agent who’s helping you, etc., can also significantly impact the sale.

Nevertheless, here's what to expect from the process with an agent: determine your home’s fair market value, set a price, market the house, negotiate an offer, and close the deal. 

The only difference is that when you sell your house in foreclosure, you have to notify your lender that you are selling it and that you actually have an offer. You must prove this to show your lender you are not just delaying foreclosure. 

Now that it’s clear that you can avoid foreclosure by selling your house, you should focus your time and energy on the actual sale. Given that the process is similar to selling a typical Maryland property, if you’ve sold a house before, this will be easier for you. 

Here’s what you need to know about selling a property before it is foreclosed.

1. Find Out How Much the Home is Worth

To find out how much your property is worth, the best step to take is to have it appraised. But if you cannot find an appraiser given the time constraint, most homeowners suggest using online tools or asking for the help of a real estate agent that is well-versed in the financial aspects of home selling.

2. Set an Asking Price

Based on the appraised market value of your property, set an asking price. Note that this is not as easy as setting a price of a typical home.

For starters, in order to profit you must ensure that the price covers your unpaid mortgage payments, interest, and late fees. There are also the fees associated with selling a property like house repairs, staging, agent commissions, and closing fees, etc.

It's better to set a fair asking price and potentially sell at a loss than to go too high and not sell at all.

5 Options Other Than Selling a Home in Foreclosure

1. Paying Missed Payments

If you are able to catch up on missed payments, it may be possible to avoid foreclosure and keep the property.

2. Loan Modification

Working with the lender to modify the loan terms may be another option to avoid foreclosure.

3. Refinancing Before Foreclosure

Refinancing the loan before foreclosure can also help avoid losing the property.

4. Get a Deed in Lieu of Foreclosure

A deed in lieu of foreclosure is when the homeowner voluntarily transfers ownership of the property to the lender as an alternative to foreclosure.

5. Short Sale

A short sale is when the lender agrees to sell the property for less than the remaining balance on the mortgage. This can be a good option if you are unable to keep up with payments and unable to find a buyer willing to pay off the remaining mortgage balance. It’s important to work with professionals and communicate openly with the lender during a short sale. Additionally, it’s important to understand the potential impact on credit and taxes. It’s also important to be prepared for a lengthy process.

1. Can I Sell My Home in Pre-Foreclosure?

Yes, it is possible to sell a property in pre-foreclosure. It’s important to negotiate with the lender and inform them of any potential buyers.

2. Will I Still Owe Money When I Sell My House in a Foreclosure Auction?

This depends on the outcome of the foreclosure auction and the remaining balance on the mortgage. In some cases, the sale at auction may not cover the full amount owed on the mortgage and you may still owe money to the lender.

3. Can I Sell My Home in Foreclosure to Cash Home Buyers?

Yes, it is possible to sell a property in foreclosure to cash home buyers. However, it’s important to negotiate with the lender and accurately determine the property’s market value. Additionally, cash home buyers may not be willing to take on the complications and challenges associated with a foreclosure sale. It’s important to communicate openly about the foreclosure process and any potential complications.

By taking the necessary steps and finding the right support, you can quickly move forward and avoid foreclosure. Have questions about selling your home? Contact Easy Outs Homes today at 443-616-5486 for more information or fill out this form >>>.

Maryland Resources To Sell Any Home

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