Sell a House in Foreclosure

 

If your home is headed to foreclosure, know that there’s still time to save it, and your credit. Your house is still yours until it goes to auction, so you should have at least a little bit of time to get your finances in order before you go into foreclosure completely. If you’re in default, you’re in what the industry calls “pre-foreclosure.” Essentially, the house is still yours, but it’s on its way to auction if you can’t pay back debt in that six month to one year period. So, what can you do?

The most obvious answer is to pay back your debt, but in today’s economy and with house payments being what they are, it can be really tough to scrape up that amount of money—and still be able to pay for groceries and other necessities—in the short window of time you have during pre-foreclosure. That’s why many people look to sell a home in foreclosure. Unfortunately, it’s a lot tougher than it sounds.

How to Sell a House in Foreclosure


To ensure you emerge from the process debt-free, you need to negotiate a sale that your lender will accept. That means the price for your home would need to cover whatever you had left on your mortgage, any back payments you missed, and any fees incurred during the time where you were unable to pay. These fees can make it really tough to find a buyer for your home, because often you’d have to price the home fairly high to be able to pay off that debt. To avoid situations like this, it’s important to talk to your lender about your options.

 

What to Know About Short Sales

It’s good to remember that selling a home in foreclosure is not just stressful and heartbreaking for you, it’s also expensive and time consuming for the lender. In the event that your home does go to auction, they’ll have to put the house up for sale, find a buyer, and then go through the closing process, which costs a lot of money, and requires a whole lot of paperwork. That’s where short sales come in.

By talking to your lender, and explaining to them your situation, you may be able to get them to agree to a short sale.

 

What to Know About Short Sales

It’s good to remember that selling a home in foreclosure is not just stressful and heartbreaking for you, it’s also expensive and time consuming for the lender. In the event that your home does go to auction, they’ll have to put the house up for sale, find a buyer, and then go through the closing process, which costs a lot of money, and requires a whole lot of paperwork. That’s where short sales come in.

By talking to your lender, and explaining to them your situation, you may be able to get them to agree to a short sale.

In a short sale, the lender agrees to take less money than you owe, in return for you paying them as much as you possibly can for the house. Essentially, you offer them the most money you can get, typically from selling the house, and they take the money and forgive the remainder of your debt. You have to sell your home, but your credit doesn’t take the hit, and you’re done with the stress of maintaining a home you were struggling to afford. If you’re honest, most lenders will accept the possibility of a short sale, because it relieves them of the duty of auctioning and selling the house themselves, as well as all the paperwork that goes along with it.

Selling a home in foreclosure isn’t easy. First of all, it’s your home, so it’s difficult to say goodbye to the memories you hold there. Second, it’s a stressful process that often involves a lot of worry and sleepless nights. Know that if you’re looking for a way out of your pre-foreclosure home, you do have options. Renewed Homes is always looking for homeowners who’d like to sell, and we pay cash and can close within 14 days when necessary. We take homes of all shapes and sizes, and would be happy to help you find a way out of that stressful situation.

As a local West Michigan company, we work to help our clients out in any way that we can, and that includes scheduling a walkthrough with you in under 48 hours, purchasing the home without a realtor, repairs, or an inspection, and offering cash sales. A trusted, local business, we’re here to help you as best we can, as quickly as we can.

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Rehab

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Selling Your Home

All the information you need to to make the decision that’s best for you and your family when it comes to selling or rehabbing your home. 

Cost of Selling Your

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a Retail Transaction

Homeowners enter into the retail transaction process because it’s the only option they know. This guide will help you better understand the transaction process. 

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