One of the worst things a person can go through is foreclosure.
However, there are several ways to get out of foreclosure and, if you feel your home is in danger of being taken back by the bank, it’s vital that you contact them immediately.
No matter if you’ve been laid off from work, missed payments due to a divorce, or can’t pay your bills due to an illness, your lender would rather work with you then see you ignore the situation.
When facing foreclosure, selling your home is an option to help avoid these proceedings.
What is the Process of Foreclosure?
When a home undergoes foreclosure, it begins when homeowners receive a notice of default once their fourth payment is missed. The entire process could take between six to twelve months, or longer, depending on negotiations between the homeowner and their lender.
Selling a Home Once Foreclosure Proceedings Begin
It’s possible to sell a home up until it’s sold at auction or when the bank takes possession. During this time, the home is referred to as being in “pre-foreclosure,” and homeowners can make attempts to settle their payments with their lender.
Selling the house fast is one of the best ways to avoid foreclosure, especially when you work with an experienced real estate agent. Not only can you attempt to net enough to pay off everything that you owe to the lender, but you can also try to raise enough to cover the fees, and penalties as well. While you won’t own the house anymore, you will avoid experiencing foreclosure and having severe damage occur to your credit.
It’s vital for you to disclose that you are attempting to sell the house in an effort to pay off the mortgage and avoid foreclosure. In doing so, the lender may postpone proceedings, as well as the auction, to allow you and your real estate agent some time to find a buyer. What this means is you the homeowner must be vigilant, not wait, and work diligently with your agent to get the home sold immediately.
The Benefits of a Short Sale
You may be surprised to find that lenders will be incredibly receptive to hearing that a short sale is occurring because they don’t like experiencing a foreclosure, either. Under some circumstances, you could also come to an agreement for a short sale that’s lower than the amount that’s owed. While lenders don’t like to lose money, they’d rather not spend their time foreclosing, owning, and reselling properties. Foreclosures end up costing lenders money so, when a short sale occurs, it saves them time and capital.
Want More Real Estate Tips Like These?
While buying and selling real estate can be exciting, it can also come with its fair share of trials and turbulence. Especially if you don’t have an experienced Realtor on your side to guide you through. That’s why we fill our blog with the best and brightest real estate and local advice every week. Please come back each week to discover something new that we couldn’t help but share with you.