Want To Sell Your House While In Foreclosure? Here’s Everything You Need To Know!

With the growing expenses of various utilities all over the world, it’s not an easy world to live in when it comes to financial terms. Some people are just two or three unexpected losses away from facing some real financial hardship and managing to make a good living in such scenarios is not an easy task to be done. 

Yet people end up buying a house of their own when to match a standard of living and many times they choose mortgage loans to buy one. But in this case, if we look into the situation with a practical sight the bank, not you, is the owner of your house if you purchased it with a mortgage loan. 

Therefore, you may have a serious issue if you skip a few payments each month and the bank starts to insist that you pay your sum in full. While nobody wants to lose their house, no one also wants to be deeply in debt and unable to make payments on it.  This is where people end up with thoughts like “Can I sell my house while in foreclosure”, but can you?

Well, the very brief answer to this question is yes you can! You can sell your house to pay off debt even if it falls into foreclosure. It is an option; it need not be your first choice. 

But if you are planning to do so, this guide will help you get the right information and money for your property that you are looking forward to selling while in foreclosure. 

What is Foreclosure?

In its most basic form, foreclosure occurs when a borrower fails to make mortgage payments, entitling the lender to repossess the property. Usually, they try to sell the property to recoup their losses.

One or two late mortgage payments are not enough to trigger foreclosure. Foreclosures always include a process that can take a long time, depending on the state. 

Although each state has its own foreclosure procedure, lenders generally attempt to engage with debtors to help them catch up on payments and avoid foreclosure.

Process of selling your house while in foreclosure

Even if you are in pre-foreclosure or have already started the foreclosure process, you can still sell your house. It’s frequently the greatest option to settle your debt with the lender in full, including any penalties and overdue payments. 

It is possible to pay off debt without severely harming your credit. Even though you might not get the desired profit, you should be able to escape from the financial crisis.

So, what to do next? 

  • Inform your lender

Inform your lender of your plans, even if they are limited to selling. By giving them advance notice, you may probably get them to be more cooperative and work with you to get the money back by delaying the foreclosure auction. Find out from the lender how much time you have left, and make every effort to move fast so that the debt doesn’t get too big.  

  • Hire a real estate agent

One of your first options if you’re considering selling your foreclosure-affected house might be to work with a real estate agent. To find out how much you might be able to sell the house for and whether the proceeds would cover the mortgage, a competent agent can perform a study on the property.

  • Consider short sale

A short sale is one of your options in a foreclosure. If you have little to no equity in your home, you might need to perform a short sale. You are in a short-sale situation, for instance, if your house is currently worth $300,000 but your mortgage is $350,000.

The mortgage payoff that the bank is ready to take because it is less than the mortgage that is held is referred to as a “short” payoff. A few things need to be in place for a short sale to be effective.

  1. You have to provide the lender with written documentation of your financial hardship. 
  2. Documentation such as a W-2, an expense report, and the mitigating circumstances that led to the hardship are included in this. 
  3. Income loss must be permanent and recovery is unlikely if it occurs.

You can start the process of listing your house for a short sale if you’ve concluded that paying your mortgage cannot be met. To start, you need the lender’s consent. Most lenders are willing to pay attention. They want to avoid financial loss, but they also want to avoid the hassle that the foreclosure process can cause.

Sell your property with us at One Offer!

We understand many people may not know all the legal facts and get stuck with the question “Can I sell my house while in foreclosure”? To make things easier we at One Offer are here to help you people out. 

We buy houses at cash irrespective of what condition your property is in, even if you are going through foreclosure, we help you sell your house quickly and get the right amount of money out of it. 

Don’t let the bank take over your house! Choose us and get the right amount of your property.