Selling A House During Or After Foreclosure
If you’re approaching foreclosure, or already in foreclosure, selling your home is one way to get out from underneath the financial burden. Your financial situation will determine how and when you can sell your home, which mostly depends on whether your home is worth more or less than you owe on your mortgage.
Can You Sell Your Home Before Foreclosure?
If you’re facing foreclosure because you’re behind on payments (default) the first thing to do is talk to your lender and see if loan modification is possible. Loan modification can temporarily or permanently reduce loan payments, hopefully preventing foreclosure.
If loan modification is not possible, and your home is worth more than you owe, then it’s possible to sell the house and use the money to pay off the rest of the mortgage. This will prevent you from going through foreclosure which can hurt your credit score.
If the home is in good condition, selling with a realtor may be the best bet. But if the home needs maintenance or repairs, selling without a realtor may be the best option. Realtors may not choose to list the house if it needs extensive work.
On the other hand, if your home is worth less than you owe, you can still sell it, but it’s a more complicated process.
A short sale may occur when the home is underwater (you owe more than the home is worth). A short sale will require approval from the lender before the home can be sold, and the lender will lose money by selling for less than what they’re owed. However, the cost to them is lower than a foreclosure, where they would lose even more money.
Selling After Foreclosure
Even if you’ve been foreclosed on, you can still sell your home. The foreclosure process can take months, and until the house is auctioned off, you still own it. If you intend to sell the home for less than it is worth, it still requires the lender’s approval, but may be possible.
Selling For Cash
Henry Street Property Group purchases homes for cash and can close in as little as 30 days. We’ve helped homeowners out of difficult foreclosure situations and may be able to help you too. Contact us today with information about your property so we can provide a fair cash offer with no-commitment.
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