There are various factors that can force you into foreclosure. Loss of employment, medical emergencies, divorce, death and burdening debt obligations among other reasons can drive you into foreclosure. It can be a dreadful and depressing process that should be avoided at all costs. Here are ways in which you can avoid foreclosure if you want to sell your home:
- Avoid the Temptation to Overprice Your Home:
If you are selling the property because of financial difficulties, it is often tempting to overprice it to cater to the financial need. It is advisable to do research on home sales around the neighborhood to have an idea of the selling price in recent periods. Instead of using the listing price, use the selling price and discount it by 10% or so. Chances are that you will attract many buyers and someone will make a higher bid to ward off competition. Overpricing the property only drives away potential buyers.
- Try a Short Sale:
You will need the permission of the lender to go for this option. Make a short sale offer that is reasonable and your lender will be unable to say no. It also saves them time and resources of having to find another buyer for the property. Provide documentation proving that the value of the property has dropped and that you will be able to meet your mortgage obligations after the short sale.
- Market the Home as Much as You Can:
If you are engaging a real estate agent to sell the home, it will be their responsibility to do the marketing. This does not mean you can sit back and wait for the sale to happen. Use the internet to market your property too. List on online real estate sites. You can also use your social media platforms for marketing purposes. Take as many good photos of the home as you can for marketing purposes. Properties with little or no photos often get ignored by buyers.
- Offer Perks to the Buyer:
You might not be the only one facing financial difficulties. The buyer might also be going through a rough patch. You can help them so that they help you. It makes it easier to sell home when you have the buyer’s interest at heart too. You can engage your lender to see if the buyer can take up your mortgage, or allow a lease with the option to buy. You can also take up the closing costs or offer to take up part of the interest rates. If the buyer is to take up your mortgage, the lender might want to assess the new buyer’s creditworthiness first. However, everyone wins with this option.
- Give the Home a Makeover:
You might not have the finances for a major makeover, but that shouldn’t stop you from fixing up the home before putting it on sale. Make the home aesthetically appealing to a potential buyer. If you have already moved out to another place, then you should consider staging. Create a positive impression of the home to attract buyers.
When faced with foreclosure, the aim is to have the home sold as soon as possible. However, everything can go wrong if not done well. Engage the services of a real estate lawyer to make sure that you don’t sell yourself short.