We are living through unprecedented times. Millions are unemployed, millions more are on the cusp of unemployment, and the global recession is just beyond the horizon.
Because of this, many people are defaulting on their mortgages and their homes are being foreclosed on.
Foreclosure, for those that do not know, is, put simply, when a lender (bank/building society) offers you no more payment options for your mortgage (which you have defaulted on) and initiates collection to recuperate their losses, which will consist of seizing ownership of your home and selling it on.
When this happens, the lender will likely sell the property for the lowest amount (providing they earn back their losses) which will mean that, while you are entitled to money from the sale, if the lender sells far below the margin of profit (which they will likely do), you will not be entitled to a penny and it is very little you can do about it.
Because of this, selling your home might be the right thing to do, though we will discuss this in detail in this article.
In this article, we are going to tell you, as our introductory paragraphs and title suggest, how you can sell your home before the bank or building society you took your mortgage out with seizes control of it.
Selling Your Home, When’s the Right Time?
When it comes to selling your home, you must sell at the right time. With that said, when foreclosure is looming, you have very little option.
At the moment, housing markets are plummeting throughout the world due to the SARS-CoV-19, which is leaving homeowners trying to sell in an awkward position.
Sure, they can sell, but will they make back their money, or will they make a profit? At the moment, likely not.
Selling your home because of foreclosure is even worse, the reason being that you are essentially forced into making a sale, which will result in you having to sell for the first price you are offered.
The first price, as anyone who has sold a house before, will know, is likely to be a lowball.
Selling your home at this time is perhaps the worst thing you can do, though with a foreclosure looming, what option do you have? You must drive the price up as best as you can.
When you are aware of foreclosure looming, it is important to explore your options.
Unbeknownst to many people forced into selling their homes, you may be able to salvage your home and your finances.
While receiving notice of foreclosure, according to the property magnates from socalhomebuyers.com/can-safely-sell-home-foreclosure/ can be devastating, you do have potential options.
It is worth first contacting the lender and trying to negotiate with them and see if they will allow you to continue to make repayments.
It is definitely worth giving this a go, you may wind up being able to keep your home.
It is also important for you to research the legality of your foreclosure. In the United Kingdom, for example, the government’s introduced mortgage holiday schemes, which banks were forced to cooperate with.
These schemes, essentially, enabled homeowners to delay their mortgage payments until they were more financially stable.
Similar programs were introduced for tenants, too. You might want to take a look and see if you were entitled to a mortgage holiday, which if you were, might be useful in fighting or delaying your home’s foreclosure.
There is no shortage of trained solicitors offering their services at heavily discounted prices to homeowners left without an option at this time, so get into contact with one and explore what can be done.
Lying down and accepting defeat is not something you want to do – especially not now. Fight, fight, fight. Your home is your home.
Without an Option
If however, you are left without an option and selling is all that you have left, then we will tell you how you can do that.
Selling your home when it is about to be foreclosed is no different from selling your home at any other time. Here’s how you can sell:
There are several we-buy services available to you if you are about to foreclose. They will pay the market value for your home and likely pay a little on top.
This will enable you to get back the money you have paid for your home, providing the value is not lower than it was when you bought it, and may allow you to get a little bit of extra spending money.
This should, hopefully, be enough for you to pay back the bank and still keep yourself afloat and arrange alternative living arrangements in the time that you are unable to get another home, or while you wait for your finances to sort themselves out again.
A lawyer is an absolute necessity, whether you go to a we-buy service, or sell normally.
Lawyers’ will be an invaluable asset and will help you to make the right decision – making the right decision when a foreclosure is looming is essential. One misstep can be very dangerous to your finances.
Contact a lawyer as soon as possible so that you can discuss all of your options and move forward with the sale of your home.
Time Is of the Essence
It is important to remember that when you are selling and trying to beat the bank to a foreclosure, time is of the essence.
The bank will give you notice and if you have not sold, or are not gone, the bank will seize your home – no questions asked.
Time is of the essence, so ensure you move quickly and act accordingly. Do not stagnate and hope the situation goes away, for, unfortunately, it will not.
Your only opportunity to look after yourself financially post-loss of your home will be an immediate sale and the money you can make from it.
In this article, we hope to have thoroughly explained to you how to sell your home in the wake of foreclosure.
We also hope to have explained to you what your options are and how you can get the best deal for yourself. Thank you for reading, folks.