Why You Should Sell Your House Before Foreclosure
Inflation has been driving up the cost of living and could have our economy on the verge of another recession. Many homeowners are struggling to keep up with mortgage payments and other homeownership costs. Some may even be facing a foreclosure on their property when they are far enough behind on mortgage payments or property taxes.
What Happens Next?
It’s an unfortunate situation, but it can happen. The real question is what will you do if you are worried about losing your house to foreclosure? You likely have more options than you realize. What’s important is that you take decisive action as soon as possible. Don’t wait until it’s too late!
Banks and mortgage lenders want to avoid foreclosures as much as you do. They stand to lose a lot of money in the repossession process. They will send warning notices and place you in the pre-foreclosure stage to get your attention. However, they will give you every opportunity to avoid foreclosure. You may be able to work out payment plans or other solutions if you can prove financial hardship. If you ignore the foreclosure letters and just hope it goes away, you are just putting off the inevitable.
Take Action Now
If you are in pre-foreclosure or you are just worried about it happening in the future as you fall behind on your mortgage payments, another effective solution may be to sell your house before the foreclosure process can take place. You may end up with a better return than waiting for the bank to seize and resell the property. With today’s real estate prices, you could be able to pay off what you owe on your mortgage and maybe even pocket a little profit. At the very least, you can pay off as much as you can and minimize your remaining mortgage balance.
Benefits of Selling Before Foreclosure
No matter what, selling your house before foreclosure can help you avoid a devastating financial result. You can get what you can out of your property, while also avoiding a major hit to your credit score and other penalties. Going through a foreclosure also means you have to wait a certain period of time before you are able to buy another house—even if your financial situation improves dramatically. This can all be avoided if you sell your house now—before the foreclosure or property tax seizure takes place.
Home prices are at an all time high. Even the least desirable properties are selling to real estate investors and other home buyers. Why wait for foreclosure to happen when you can get a fair price for your house now? A cash home sale can be completed very quickly, allowing you to get out from under the financial burden of your home and move onto something else. Even if you still end up owing some to the bank, you will most certainly be better off after the property is sold than if you hold onto it and wait for the impending foreclosure to occur.
If you are interested in selling your house quickly and safely, contact PropertyLark today. We will gladly make you a fair and fast cash offer on your house, or we can help you explore other home selling or homeowner financing solutions. Just let us know how we can be of service during your difficult financial time.