Foreclosure is a frightening term, especially if you’ve been hit by a car accident, sickness, divorce, or another tragedy and your finances have gone downhill. Usually, selling your property is the first choice to avoid losing it due to foreclosure. However, is it possible? 

Here you will get the answer and things to keep in mind before taking this approach.

Yes! If you are facing foreclosure , you have the option to sell your home until it goes on the market for sale by the mortgage lender. When a mortgage company exercises its right to sell a property and the owner has not made payments, the house will be foreclosed upon.

Before marketing a property for sale, a bank or mortgage firm gives clients time to make payments or other arrangements. The lender will then put the property up for sale. Before the auction, the owner must give a four-week notice of sale and may sell the home, refinance it, make all outstanding payments, negotiate a loan modification with the lender, or file bankruptcy.

Contact your lender to get permission for a short sale. Instead of talking to front-desk staff who will most likely have to delegate the choice to someone else, find someone who can truly make a decision. Explain why you’ve fallen behind on your payments; if you’re not in default, the lender will most likely refuse a short sale. Demonstrate that it’s not because of negligence or a lack of disclosure on your part.

To help you with the sale, enlist the aid of a real estate agent and an attorney. Even if cash is tight, hiring expert assistance may pay off in the long-term. The agent can assist you in determining an asking price. You’ll want to stay as close to your mortgage amount owing as possible while maintaining a fair profit for you.

The lender will want to see the highest bid you obtain, and you should request permission. Regardless of how low the offer is, if the bank forecloses and sells the property at auction, the top bidder will take possession no matter how good a short sale offer is. Prepare to provide additional information about your financial status as well.

Contact your lender about obtaining a deficiency judgment. If the short sale does not cover the full amount of the mortgage, the lender can bring legal action against you for whatever cash is left in some jurisdictions. You’re much better off if the lender agrees to refrain from pursuing a judgment, but even if it refuses, your debt may be less than if the bank had taken possession.

Your financial information may be used against you in a foreclosure proceeding. In a mortgage hearing, the lender could claim that you should reimburse them for some of the assets you’ve revealed in your application. A professional real estate lawyer can assist you.

You can take the conventional approach and put your house on the market, or you may attempt an alternative method known as a short sale. While this is the most effective way to get the highest possible price for your property, it might take months or years to sell one this way in a pre-foreclosure scenario.

Selling your property to companies buying houses for cash. These businesses buy houses they believe have significant potential – either for renovation or the community – immediately and for money.

If you’re thinking, “I need to sell my house during foreclosure,” I Will Buy House Portland is the business for you. We pay cash for houses in any condition, including probate sales that must be completed quickly, foreclosures, relocations, retirements, tax liens, divorces, major repairs, and much more! 

We close the sale as quickly as possible so that you can get out of your burdensome homeowning situation. Get in touch with us.