Selling your home before foreclosure may not be the best choice for you as a homeowner, but when circumstances happen, selling your home before foreclosure may be your only choice.
Knowing you’re at risk of foreclosure can be stressful for you as a homeowner. Foreclosure can lead to you losing your home and even ruin your credit history. The consequences of a foreclosure are serious which is why you must find a solution to avoid it. One way to avoid foreclosure is to sell your home before the foreclosure process.
How Will I Benefit If I Sell My Home?
On the brighter side, selling your home before foreclosure can be to your advantage. If you manage to sell your house before foreclosure, you can avoid further ruin to your credit history. And you may be able to make a profit from your home equity thereby easing your financial stress.
How To Sell Your Home Before Foreclosure
You can try to sell your home before or after the process of foreclosure but not after a foreclosure becomes a done deal. You have two options to sell your house before foreclosure which is either through a short sale or through a normal real estate transaction.
As soon as you realize you’re facing financial issues and can no longer meet up with your mortgage payment, it’s best to sell your home instead of dealing with foreclosure. This approach can help you sell your house to a buyer for a good price and pay off your mortgage debt. The earlier you start looking for a buyer the better, because the foreclosure process is not a long one which is why you need to sell your home before the bank can sell it at a foreclosure auction.
You might get lucky with some banks that they might decide to give you some time to sell your home before foreclosure, so long as you’re able to sell your home and pay off your debt.
However, when selling your home, you should sell it for a good price so that you can pay off your debt conveniently and have extra for any penalties, interest, or fees. If you’re not able to sell your house for a good price to clear off your debt, then you’ll be owing your lender the difference between the amount you owe and the amount you sold your house. This difference is referred to as a deficiency balance. The bank has the right to ask the court to grant them a deficiency judgment against you to recover this deficiency balance.
Having considered all of these options, the fastest way to sell your house for a good price is to let an experienced realtor handle the sale of your house. Hiring a real estate agent offers you numerous benefits such as:
- Placing your house on the Multiple Listing Service (MLS).
- Helping you upgrade your home to increase its value so you can sell it at the best price.
- Helping you negotiate a short sale with your mortgage lender if there’s no other way out.
Conclusion
Selling your house before foreclosure may not be the best decision to make but is necessary if you want to avoid the consequences of foreclosure. If you’re looking to close the sale of your house in record time, consider selling to a cash house buyer.
At Chase Pays Cash For Houses, we buy houses Birmingham Alabama at the best price. We will buy your house at a price that can help you cover your debt. Even if your house is not in great shape, we will buy your house as-is at the best price.
Contact us today to learn more about our services!