How to Sell Your House Before Foreclosure
If you are facing foreclosure or a property tax default, you risk losing your house and getting nothing back in return other than negative scores on your credit report. That doesn’t have to happen. You may have options if you are willing to be proactive. If foreclosure is imminent, don’t wait until it’s too late. Take action as soon as possible and see what can be done.
Contact Your Mortgage Lender
The first step to take is to reach out to your bank or mortgage lender. If you are behind on mortgage payments or have already gotten pre-foreclosure notices in the mail, the best thing you can do is talk to someone. They may be able to present you with refinancing, repayment plans, payment assistance or loan forbearance programs. Remember that a foreclosure is a huge hassle for the bank, as well. They want to avoid the process as much as you do. They typically lose money on foreclosed properties. Let them know your situation and see if anything can be done.
The same is true if you are defaulting on property taxes. You can contact the county tax offices or sheriff’s department for more information and options. You may find a workable solution or you may not, but you never know unless you give it a try.
This may be another option to consider if the circumstances allow. The bank/lender may present you with a “short sale” option. It’s not always the ideal solution, but it is certainly better than a foreclosure and will get you out from under the financial burden of your home. The short sale agreement may depend on your house’s value and how much you still owe (i.e., how “upside-down” you are on your mortgage). You may still owe some money after the sale or other arrangements may be made. No matter what the deal, it’s still usually much better than a foreclosure in most cases.
Sell Your House While You Can
Before the foreclosure or tax default process starts, you may still have time to sell your house. An open-market sale through a real estate agent might net you more money in the end, but it is a slower process and it may cost you additional money out-of-pocket. You may not have the time or money to sell this way. This is why it’s a great idea to reach out directly to a real estate investor. A real estate investor may be willing to pay you cash for your property, which significantly speeds up the closing process and eliminates many complications that often slow down the transaction. A cash home sale is quick, convenient and simple.
A real estate investor or investment firm like PropertyLark may also be able to work with you to find some other creative seller financing options. There are ways you may even be able to stay in your house or net more money when all is said and done. Even if you are upside-down on your mortgage, you may be able to come out ahead, break even or at least minimize what you still owe.
The point is you need to be proactive and start making moves as soon as possible. Don’t wait for a foreclosure or tax default to happen. Get in front of it and explore every single one of your options. You may have more solutions than you think!
Contact PropertyLark to get started. We can review your situation and home’s value, then present you with a fair cash offer or other financing solutions. Just fill out the contact form to the right of this page.