Dealing with financial troubles as a homeowner can lead to issues paying the mortgage on a monthly basis. If things start to get out of hand, one missed payment can lead to another. The next thing a person knows, they are facing the possibility of a foreclosure on their home.
Forclosure seems like a pretty final thing to most people, but there are some options to consider when faced with this issue. One way is to look into ways to sell the home quickly before the foreclosure takes place to help pay off lenders.
In an ideal situation, most people would like to keep their primary residence if at all possible. However, financial issues can really put some people in a bind. With a chance of possibly facing foreclosure, people need to look for quick results in order to avoid losing their home and taking a huge financial hit.
A person faces foreclosure once at least 180 days go by without a payment. There is a chance with foreclosure that a person will lose all of their equity in the home if something is not done. It can pretty much seem like and impossible situation to be in, but there are alternatives. From loan modifications to filing for bankruptcy, foreclosure can be dealt with. Actually selling the home is another alternative, and it is one of the best alternatives if done right.
The good news is that the foreclosure process is pretty drawn out. Lenders can be talked to in many cases to spread out the process a bit. That allows for some time for people to get creative in trying to sell a home. A person has the right to sell their home and pay the lender at any time before the home is actually sold at auction. Just remember that most real estate transactions take about a month to be completed according to bankruptcy-law-seattle.com, so be proactive. There will probably be some additional penalties that need a paid off, but it is entirely doable.
Looking at Short Sales:
A short sale is not an ideal plan in the grand scheme of things for the homeowner or the lender. With that said, it is a solution that can be better than nothing. With a short sale, a person sells their home for less than what they actually owe. It is a solution that gets the current owner out of trouble, and lenders do not have to deal with losing money by not receiving a mortgage. According to Realtor.com, this solution is probably best for the majority of people. Think of it as one big compromise that is better than nothing considering the circumstances.
A real estate agent is going to be the best hire a person can make when trying to sell their home quickly before foreclosure. They will be able to determine just how much a home is worth right away, and speed up the entire process in general. This is not really the time to sell a home on your own. Getting a real estate agent does cost money, but they will be able to pay for themselves and then some because they’ll be able to get the most money out of a sale.
Just remember that time is not on a person’s side when facing pre-foreclosure or foreclosure. Can I sell my house before foreclosure? Of course, but most lenders are only going to allow for a little bit more leeway before taking action. Explain the plan of a short sale, and buy some extra time that way. Sometimes it is best for a person to have a real estate agent or a lawyer talk to the lender and explain how a sale is being attempted. They will usually postpone the day of the auction at least a little bit if they know a person is trying.
Sell, Sell, Sell:
It might not be the best option as far as making money is concerned, but selling a home at a reasonable price before it is foreclosed on is the way to go. Nobody wants to take a huge hit to their credit score because of a foreclosure. It can really set a person back, and is just a messy situation to deal with in general. If the foreclosure actually goes through, it can be extremely difficult to get any type of loan for a few years for another home.
Stay motivated, and you can get a decent price in your market. Many in the past have faced this type of situation before. A real estate agent and/or real estate attorney can help save the situation.