Useful Tips On Selling A Foreclosed Home In Houston
For a majority of homeowners who have defaulted on their loans, selling their foreclosed homes is a solution that they don’t well understand. Facing foreclosure can be one of the lowest moments for a homeowner. It is a lengthy and disheartening process. However, this doesn’t mean that all is lost. In case you have defaulted on your mortgage payments and are looking for a viable solution, then you might be asking if it is possible to sell a home if it is in foreclosure. The answer is a definite YES.
Provided that your home has not yet been sold at auction, then you still have a chance to save your home. You have the option to sell it and pay the lender all that you owe, including penalties and back payments. Also, depending on the state, you can be granted a “statutory right of redemption.” Basically, this is a take-back period from the date of foreclosure – this period can be anywhere between 30 days to two years – in which you can buy your house back.
If you are in a position to fully pay what you owe your lender, including all the fees and interests, you can have your home back or sell it to a willing buyer.
Just how really foreclosure works?
After you miss four mortgage payments, you are issued with a notice of default that sets the ground for the foreclosure process. This process can last for 6 months or up to 12 months and more, based on your negotiations with your lender.
Till your home is sold at auction or the bank takes over the ownership of your home, you will have the freedom to sell the home. Within this period, your home is said to be in “pre-foreclosure” and you have the opportunity to clear your debts with the lender.
Selling your home with the assistance of an expert agent is one of the most effective ways of avoiding foreclosure. An expert agent will help you fetch enough to enable you to settle all your debts with the mortgage provider including the back payments, fees, and penalties. Though you will have lost ownership of your home, the house won’t be foreclosed. Foreclosure can seriously dent your credit score.
In case you choose to sell, inform your lender of your plans to put the property on the market with the aim of clearing the mortgage debts. Request the mortgage provider to push back the date for the foreclosure auction or sale to enable y
you to find a buyer.
You should make the decision to sell as early as possible as this helps to minimize the pressure on your deal and gives you ample time to fetch the best price for the property. You need to find out from the mortgage provider how long you have until your home hits the auction block. This will vary from state to state. Some states allow the lender to auction off a home in less than 30 days, while in others, the mortgage providers aren’t allowed to auction off the property until a year has elapsed.
How to sell a foreclosed property after the foreclosure has already started?
Hire A Real Estate Agent
When you are working against time, your top priority should be hiring a real estate agent to find out the market value of your home. A professional agent will carry out a market evaluation to help you figure out how much money you can expect from the sale of your home and if it will be enough to settle your debt.
The best real estate agent will conduct negotiations with the mortgage providers to lower the amount that they will accept in a short sale to save the property from foreclosure.
Short Sale To The Rescue
The foreclosure process isn’t fun for the lenders either as it presents many legal, financial and PR complications. This is the main reason why many lenders accept a short sale agreement. This is where you get to sell your property for an amount lower than all the mortgage debts you owe.
Agreeing to a short sale is often out of frustration on the part of the lenders. Even though they obviously don’t want to incur a loss on the mortgage, they also don’t want to invest a lot of time and resources foreclosing, owning, and selling the property.
The mortgage providers aren’t really up for the foreclosure as it costs money.
Therefore, once you’ve spent a significant amount of time filling out the paperwork and explaining what got you into this financial predicament in the first place, you may be in a position to convince your mortgage provider to agree to a short sale.
Not only do you avoid foreclosure with a short sale, but it also helps to avoid putting a serious dent on your credit score.
Alternative Ways To Avoid Foreclosure In Houston
The last thing you’d want to do when facing foreclosure is trying to hide from your lender.
Here’s a hint: You will be found and if they can’t find you, they will initiate foreclosure proceedings. You can save yourself a lot of trouble by calling your lender, explaining your financial situation, and begging for leniency and some more time to enable you to sort out your issues and pay off the debt or to refinance.
In case this isn’t practical, the following are some other alternatives:
Some mortgage providers are usually willing to restructure monthly payments and allow homeowners to pay off missed payments in the course of time. They may also lower interest rates.
Request For Forbearance
You can ask your lender to lower or temporarily suspend your payments, giving you time to fix your short-term financial problems.
Look For Money
Ensure that you have sold everything you can before you lose the home. You can consider selling your car and using public transport and cleaning out your closet and pawning your jewelry. Considering your current predicament and what’s at stake, you shouldn’t feel embarrassed to ask for financial help from your loved ones.
Identify New Ways To Save
Review your monthly budget with a keen eye to identify areas that you can adjust to save money. Also, find out how you can make more money, for example, applying for a second job.
Get A Cash Offer From Haan Homes In 24 Hours
Fortunately, we buy houses in Houston. Our services are fast and we will ensure that you get a no-obligation fair cash offer within 24 hours.
We keep receiving praise for our soft approach. With us, there is no hard sell. You also don’t have to accept our offer if you aren’t happy with it. No charges or fees.
We’d be glad to talk to you regarding your property and your situation. We are always ready to serve you regardless of if you choose to sell your home.
Haan Homes is a professional house buying company that buys houses fast in Houston. We pay cash for homes, which makes the entire process simple and quick. Contact us or call us today for more information!