How To Sell Your House In Foreclosure Even If You Owe Too Much
In the event that you have received a notice of foreclosure, it may be difficult to know what your next step should be. How can I sell my house in foreclosure? How do I get out from under the mortgage if I owe more than it's worth and have no equity? How can I sell my home fast in foreclosure? In this article, we will answer all of these questions and more on how to sell your house in foreclosure!
Move Fast!
If you have received one or more foreclosure warnings do not wait! You may have already lost a considerable amount of equity. How much time do you have to sell your house in foreclosure? In many cases, the answer is no more than three months, but your situation can vary depending on state laws and how quickly you are able to get an agent involved. One of the most damaging moves we see homeowners make is waiting until the last minute to do anything, often times this can result in them losing the house.
Decided What You Want To Do
Now that you have this notice it is time to decide what you want to do. You can either sell your house fast or decide what else works for you. In the event that selling would be a good option, then we recommend selling as soon as possible so that they may avoid foreclosure and keep their credit from being damaged in the long run. If they choose not to go down this road there are other options that we will discuss below. If a homeowner decides on going with our home sale process, the first thing we discuss is why? Do I need cash quickly? Is my credit important enough for me not to lose my property?
Sell It
The simplest way on how to sell your house in foreclosure is to just sell it. If you have enough equity in the property and can no longer make the payments you are still able to sell your house. Homeowners looking to sell their home fast in foreclosure can do so through a real estate agent or by selling it directly. Selling your house yourself is often the best option as you will receive all of the money from the sale instead of paying an agent’s commission and closing costs. This can be very important since once you stop making mortgage payments the bank will start adding on expensive fees.
As stated above, there are several ways that homeowners can go about selling their homes but one thing remains true: time is not on your side when trying to avoid foreclosure and keeping equity intact. If you are able to move quickly with us then this process could help save thousands of dollars down the line while also avoiding any damage done to credit.
Catch It Up
If you are able to you can always just catch up on your payments instead of selling your house in foreclosure. This is sometimes the best option for homeowners that are struggling with their mortgage, but it can only be done if you have some time to do so. Finding a way to catch up on those payments as quickly as possible will save money and not damage credit in the long run!
It is important to note if you do go down this route move quickly. Every day your house is in foreclosure your credit gets worse. To add insult to injury every day that passes what you owe on your house goes up, not down(don't forget those bank fees). This is not a way on how to sell your house in foreclosure but not all the time is selling right.
Do A Short Sale
In some cases, a homeowner may owe more on their mortgage than the home is worth. In this case, a short sale might be the best option. A short sale is when you sell your property for less than what you currently owe on it to the bank. This process can often take longer than a traditional sale and will require the approval of your lender but if done correctly can help homeowners avoid foreclosure proceedings.
One thing that makes this process difficult is banks are not in the business of losing money which means they will often times reject a short sale offer or make it very difficult to go through the entire process. However, with an experienced agent and a great short sale attorney by your side who understands how to work with banks we have seen success rates increase dramatically! We often work with sellers who need to get a short sale done smoothly by connecting them with the right people.
Sell It Subject To
Selling your house in foreclosure subject to is a little-known way on how to sell your house in foreclosure, but also dramatically helps your credit. When you “sell subject to” the existing mortgage stays in place and you are simply selling the property to someone else. This option is also beneficial for homeowners because it allows them time to find another place to live and removes any worry about foreclosure proceedings.
Make certain the buyer you work with has done this before and knows how to do this. While the new owner makes the payments for you your credit will start to get better since it looks to the bank that you are making payments. to learn more about subject to transactions contact us. Not every property can work for subject to.
Let The Bank Know
Whatever you do let the bank know that you are trying to fix this. Oftentimes, the bank will work with you if they know you are trying to make things right. This includes coming up with a plan to catch up on your payments or selling the property in foreclosure. The last thing the bank wants is for their assets to be tied up in court or for them to have to take possession of a home. Remember, banks do not make money by taking houses, they make money by getting payments. Have an experienced person communicate with the bank so they can get you more time. We have often been able to push off foreclosures by months with just a few phone calls to the right people.
How To Determine Which Way Is The Best
Being in foreclosure can be stressful and confusing, we just gave you a few options (and there are even more) on how to sell a house in foreclosure, but how do you decide which way is right for you? The best way to determine which option is right for your situation is to contact a real estate professional like us and we can work with you to come up with the plan that works best for you. We have been through the foreclosure process and know what you are going through. We can help you! Each situation is unique and needs to be addressed as such. Working with the wrong person and you can lose your house.
In Conclusion, How To Sell Your House In Foreclosure
The good news is that there are plenty of ways of how to sell your house in foreclosure if you owe too much. This article has given some great tips for making sure this process goes smoothly. If you have any questions about how it works or would like more information on the best way through which to proceed, contact us today! We're here to help with all your real estate foreclosure needs!