Are you facing a foreclosure and want to reduce the impacts? Maybe you prefer to sell the house to stop the process. But is it possible?
No one wants to lose their home or build a pile of debt. So, you want to clear everything before the process begins. The question is, can you sell a house in foreclosure?
Here’s a guide on what to know about it.
The Foreclosure Process Timeline
A home doesn’t go in foreclosure after a single missed payment. While it could vary for each state, the usual timeline is as follows:
Missed Payment Notice
Mortgage payments are crucial, so missing at least one could leave a big impact. After a missed payment, you have a 15-day grace period before the lender adds an additional fee. Some also report the delay to credit bureaus.
Default Mortgage Payments
If you miss at least three mortgage payments, you will be put into default. It also happens when you fail to pay after 30 days. From here, the steps to follow depend on the type of foreclosure you’re in.
Notice of Foreclosure
Under a non-judicial foreclosure, you will receive a notice of default including how much you owe. You have to negotiate with your lender if you can’t repay it on time.
A judicial foreclosure is a lawsuit filed by the lender. In this case, you will go through trial and follow legal processes.
Pre-Foreclosure
During this period, you should pay or negotiate with your lender about a payment plan. Otherwise, you have to sell your home.
Notice of Sale
When the pre-foreclosure time is up, the lender will publish a notice of sale for your home. Although, you can still try to find a buyer by then.
Eviction
You get evicted from the home when you fail to find a buyer or complete the payment.
How to Sell a Home in Foreclosure
You can try to find a buyer for your property as soon as you realize you can’t complete payments. If you do so after getting the notice, you should inform your lender about it first.
Here’s a quick guide on how to sell foreclosure homes:
Identify Property Worth
Have your home appraised to get the property value. You can also use online tools or seek advice from someone with experience.
Set the Price
Set your asking price based on the home’s value. Be sure it’s enough to cover the amount you owe, including unpaid mortgage, interest, and late fees. You can also add the costs for repairs, commissions, and others.
Notify Lender
Let your lender know you’re selling the house in foreclosure. The rules vary with every state, so check in with yours before proceeding.
Find a Potential Buyer
You can find someone whowill buy the property on your own or with the help of a real estate agent.
Negotiate Offers
There’s little wiggle room when you’re working with a foreclosure home. Even so, you can negotiate offers to ensure you get buyer soon.
Close the Deal
Let your lender know you found a buyer and inform them of your agreed terms. After, you can close the deal and proceed with paying what you owe.
Get Answers to Can You Sell a House in Foreclosure
When you miss several mortgage payments, you might ask yourself, can you sell a house in foreclosure? The answer is yes, as long as you follow the proper process.
Note that the guidelines could vary based on where you’re from, so be sure to check your state’s laws before you begin. Learn more about it in our blog!