Selling Your Home In Foreclosure
If you’re wondering, “Can I sell my home when we are in foreclosure?”, the answer is yes. If your next question is, "When should I start the process?", the answer is right now!
Are you allowed to sell after a foreclosure notice?
First, let us say that we're sorry that you're in this situation. Times have been tough throughout the last year, and foreclosures - especially for workers that have lost their jobs due to the pandemic - are becoming more and more common in the greater Fredericksburg area.
We just want you to know that it's not the end of the world, and you still have options. If you have been unable to make your payments, and your mortgage company has begun the foreclosure process, you are still well within your rights to sell your home independently. In fact, if the reasons that caused you to fall short on your payments recently are going to be long-term issues, then selling your home might be the best option overall.
In fact, there's a chance that you might have the equity already built up in your home to help you out of your current financial troubles. The decision to sell your home because of financial issues may be a hard pill to swallow, but the most important thing for you now is regaining control of your economic future.
So... What Now?
If your lender has recently foreclosed on your home, we offer our sympathy, but more importantly: our advice. That advice is: get your home in selling shape and get it on the market immediately.
If you wait to list, and the foreclosure process proceeds, you won’t have time to prep the house for sale - which will lower your list price or prevent you from getting your home sold at all. Many people in this situation don't know where to start, and we're here to help. Here is what we recommend to get your home on the market ASAP!
Communicate Frequently with Your Lender
It may be tough to work with the people that are foreclosing on your home in the first place. However, they'd rather work with you and sell your house at market value than foreclose and sell your house at a loss, so you might be surprised at the resources they are able to offer.
Speak to a Qualified Agent
Speak to a real estate agent once your plan is in motion. Ask your friends for recommendations, speak to your foreclosure lawyer to see if he has recommendations, or even ask your lender if they work with anyone locally in similar situations.
Working with a qualified agent will significantly speed up and simplify the process for you.
Have Your Home Appraised
Before you can sell your home, you need to know exactly what it's worth! Talk to your agent and get his recommendation on how to have your home appraised. You might even be able to work with your lender on a free appraisal (since they will have to appraise the home regardless).
Dollars and Cents
In order to make the most informed decision, you will need an up-to-date accounting of all of the money involved in the equation. By that, we mean:
What you owe on your home (including penalties and late fees)
How much it would cost you to sell (seller's fees)
How much the home would sell for in the current market
Whether you need to price your home aggressively (if your timetable is short)
Work with your agent and lender to come up with all the figures. That's what they are there for! Once you've balanced the books and found out how much you stand to gain from selling, it's time to list your home.
How Soon Will It Sell?
Selling a home that's in the foreclosure process is no different than a normal home sale. Additionally, there is no requirement (or reason) to disclose that your home might be foreclosed upon, so the buyer will treat your listing just like they would any other.
Right now, it's unequivocally a seller's market. Which means you would be in the driver's seat if you choose to sell. That also means that, unless you have to price your home super aggressively to sell quickly, you could potentially sell your home for a profit before the bank forecloses on it. Doing so means you'll pay off your mortgage and walk away with some money to start over.
However, we find that many homes facing foreclosure need a lot of work to get sale-ready. That's where we come in. At RENOMAX, we specialize in taking situations like these and improving the outcome. Through our RENOMAX program, we pay the costs to renovate your home, and then do all the work to list and sell your home as fast as possible for the highest amount possible.
So let us know what we can do to help!
Get In Touch!
If your home is in foreclosure, you don't need us to tell you that you're in a tough spot. It's not the end of the world, however. Face this challenge head on, and you have the opportunity to come out on top, with enough cash for a fresh start.
Whether you want to renovate and then sell, or just sell ASAP, we would love to be your partner. Please give us a ring at (540) 737-5617, contact us online, or give us a shout on Facebook if you have any questions.
