Selling Your House When Behind on Payments
Something happened and you are behind on mortgage payments. Unfortunately, it’s a reality many Americans face whether the economy is good or bad. Once you’re behind on your mortgage payments, it could be only a matter of time before foreclosure comes knocking on your door. For homeowners who are beyond on their mortgage payments, there is a possible silver lining which is selling your house. Contrary to what most people think, selling a house when you’re behind on payments is not only possible but sometimes the best option. But it's not a solution for everybody. The question of whether selling a house while still paying a mortgage is applicable depends on several factors. Can I Sell My House If I’m Behind on Payments? Can you sell a house with a mortgage in Harford County, MD and surrounding areas? It depends on whether or not your lender has declared foreclosure on your property or not. Note that getting a foreclosure notice doesn’t mean your property is already foreclosed. You’ll usually get these notices when you miss just one of your mortgage payments. So how many months can you get behind on your mortgage before you get foreclosed on? Only when you’re more than 3-4 months late from your last payment can your lender initiate foreclosure proceedings. This length, however, varies from one lender to another. If you’ve been foreclosed, sadly, there isn't much you can do. The lender can legally evict you from your property, then sell it off to pay for your loan. Your best bet is to talk to your lender about giving you more time to sell your property if he or she will even allow you to. But if you haven’t been foreclosed yet, you still have options at your disposal. Successfully selling a house that still has a mortgage depends on whether the value of your home is worth more or less than what you owe. If your property's value is higher than your mortgage balance, then you can still sell it. Selling your home means you go through the normal process, which involves getting a realtor or selling it on your own. However, if your house's value is less than what you owe on your mortgage, then you have to do a short sale transaction with your property. In this case, you need your lender’s approval to initiate this type of selling. Can I Short Sale My Home? In essence, a short sale means that profits you get from selling a property are not enough to pay off your mortgage. While not ideal, it’s better than having your property foreclosed on, because your credit score won’t suffer as much. You also get to stay in the home until the sale is completed, avoiding the embarrassment and trauma of an eviction. In reality, the option of short selling isn’t always available to you. That’s because the decision of whether or not to have a short sale rests entirely on your bank or lender. As a rule of thumb, most of them will prefer that you get back on track and continue with your mortgage payments. If you are not far behind on payments, then the bank might rule a short sale off the table. That's because, in a short sale, the bank or lender will get less than what you owe them. Only if you’re extremely behind on payments and have no other options would they agree to a short sale, in efforts to recoup some of their losses. Banks would rather be paid in cash than having to go through the hassle of managing and selling a property. Banks will require that you submit financial documents to prove that you’re unable to fulfill your loan payments and that a short sale is the only way. You’ll also be asked to explain your reasoning for a short sale in a written letter. Some lenders will even attempt to add conditions in order for them to agree to the short sale. One problem you might encounter is if your lender sells your mortgage to another bank. If that happens while you’re in the middle of the short sale application, it might restart the process. This potentially makes it harder, depending on the new bank. How to Prepare for Your Home Sale Preparing your house to sell can be a very challenging and stressful task. It can be even more difficult when you’re behind on payments. That’s because prep work needs time and money, something that is in short supply when facing mortgage troubles. Preparing your home is crucial if you want to appeal to more buyers. The good news is that, depending on how well-maintained your property is, you can prepare your home on a shoestring budget -- if you’re willing to use some elbow grease. You can start with simple things like doing a deep clean of your home to make it presentable. Adding some curb appeal to your house also goes a long way in giving buyers an excellent first impression of your home. Trim your lawn, remove dead branches from your trees, and give the patio and front door a nice repainting. You can also stage your house to make it even more inviting to prospective buyers. You can easily do this yourself. The key is to keep it simple, give lots of space, and make it appeal to the masses. Remove any family photos, unique displays, or anything that specifically expresses your personality. People like to imagine themselves living in the house, so your home needs to be as standard as possible. Other Alternatives The sale of a house with a mortgage has its fair share drawbacks for you, the lenders and banks. But, with alternative courses of action, you may find a more positive outcome. While selling (or short selling) your house is the most common option when you’re behind on payments, it’s not your only option. There are two more alternatives that can be better options, depending on your financial situation. Loan Modification A loan modification is a request to your bank to lower your interest rate. The concept is that, with the lower interest, you can better afford the loan payments, helping you get back on track. For some banks, it means getting less income overall, but it's better than the hassle of foreclosure. To qualify for a loan modification, you need to make sure you can handle the monthly payments at the lower interest rate. This works well if you have a stable source of income that's not enough to cover the payments at a higher rate. Banks will usually ask for requirements proving that you can’t make the payments and would need the rates lowered. They will then put you in a probationary period of at least three months. During this time, you must comply with the new payment scheme before being approved. This process can be lengthy, with some banks going as far as intentionally delaying your application. Also, if you can’t stop your mortgage from being sold to another company, then you may have to restart the process. If you do get approved, it could be a good idea to sell your home after a loan modification. House Buyers of America House Buyers of America is an ideal option for homeowners who want to sell a house fast to avoid foreclosure. Our process is extremely intuitive yet simple: we buy houses for cash. If you want to learn more about selling your house fast to House Buyers of America, just give us a call. We'll give you a fair cash offer in minutes. Here's a closer look into the whole process of selling your house to House Buyers of America. First, request a fair cash offer online. We'll then schedule an in-person meeting to discuss our cash offer with you. There is no need to repair or prepare your home. Once you accept the offer, we'll buy your house right away. The best part is, you will get paid in a matter of days. House Buyers of America is an easy, quick, and fair way to sell your house with no realtors and you pay no commissions. You get paid a competitive price for your house. Get Your Fair Cash Offer Today The good news is that the foreclosure procedure usually takes months. That gives you plenty of time to correct the situation. The key is to address the situation and come up with a game plan as soon as possible. Foreclosure can be difficult and hard to accept. Still, the more prepared you are for it, the easier you can find a solution. If you are behind on payments, contact Easy Outs Homes today about selling your home in Harford County, MD and surrounding areas for cash. We can help you get back on track and avoid foreclosure. Every second counts so call us at 443-616-5486 or use our online form to get an offer today.
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