Real Estate Tips: Can You Sell A House In Foreclosure?
By Space Coast Daily // March 8, 2020
Real estate or buying a house is a very big investment that needs long-term commitment.
Sometimes though, people go through a tough time financially that they’re unable to pay their mortgages on time or they’re just unable to pay at all.
When this happens, banks often send a notice of foreclosure to the homeowner after four months of missed payments.
There are many reasons why a homeowner wouldn’t want foreclosure. Not only will you lose your home, but a foreclosure will also have a severe negative impact on your credit score.
You would think that banks are to blame for this, but banks also prefer that they won’t need to foreclose your home. Banks become legally and financially responsible for your home once they’ve foreclosed it, and they prefer to not have that kind of responsibility.
Can You Sell A House in Foreclosure?
Receiving a notice of foreclosure doesn’t mean that you’re no longer allowed to sell your house. As long as they’ve not taken possession of your house nor it hasn’t been auctioned yet, you can still sell it.
To sell your house, you can find a real estate agent or short sell your house. Short selling gives you a fast way of selling the house and paying your lender the money you owe them.
It also saves you from taking a huge, negative effect on your credit scores. There are a number of buyers that’ll buy your home at a fair price. For example, there’s Cream City Home Buyers in Milwaukee and Axess Home Buyers in Salt Lake City, Utah.
Although selling your house at a price that you want through a real estate agent is reasonable, it’s also important that you’re able to sell your house fast. Your goal is to save your credit score by not getting foreclosed by the bank after all.
Ways To Prevent Foreclosure
The possibility of losing your home is a very depressing thought and no one wishes for it to happen. However, there are just times that money can be tight. You can lose your job suddenly or have a problem that can impact you financially.
But, despite having financial problems, there are still ways that you can do to prevent a foreclosure.
- Sell Unused Things or Properties
The answer to your money problems may just be lying on the floor of your house. If you have unused things at home that can still be used, you can sell them for money. For example, you can sell your old but usable lawnmower or vacuum cleaner.
You can also sell your jewelry or piano if they’re just lying around and you’re not using them. Just think of all the things that are just lying around your house that you’re barely using and you can live life without. If they hold no sentimental value to you, sell them.
You can then use the money you’ve earned to pay your mortgage.
- Work On Your Budget
Budget your money so you can save. If you’re already on a budget, sift through your budget and see what you can get rid of to save some more. For example, you can cut your yoga or gym classes and do them at home instead.
If your parents or friends can help you out, there’s no harm in asking them as well. Better ask than lose your house.
- Restructure Your Loan
Lenders or banks can allow you to restructure your loan so that you’ll be able to pay your missed payments. You can also pay less by lowering the interest rate of the loan.
This is an ideal opportunity for you if your financial situation has changed and you cannot afford your previous payment terms anymore.
- Ask Your Lender For Forbearance
Approaching your lender and asking them to temporarily stop your payments for a short time until you’ve gotten your financial situation back to where it should be can also be helpful. It can allow you to have a peace of mind while you’re not able to pay.
This is an ideal solution in situations where your financial problem is temporary. For example, when you’re waiting to start a new job or you’re on unpaid leave due to health issues.
Although a foreclosure can be a heavy burden to carry, it’s something that you have to face and find solutions to. Neglecting the problem won’t make it go away. Instead, it’ll only make it worse.
Running and hiding from it is also very ineffective and your bank will eventually find you. So, instead of running and hiding, try to prevent a foreclosure by doing any of the solutions provided for you.
CLICK HERE FOR BREVARD COUNTY NEWS