Homeownership is arguably the pinnacle of the American Dream. The journey to owning your dream home can be fun yet intimidating in equal measure. You’ll have to keep up with costs that come with having a property deed, including mortgage payments, property taxes, utility bills, and much more. In these uncertain times, some circumstances may give you no other option but to default on your mortgage repayment.
Missing several monthly payments can put your home at risk of foreclosure. Your first instinct may be to ignore the issue, hoping it will fade away. Sadly, it will only fester. If you have failed to work out an alternative arrangement with your bank or lender, you may need to think about selling a home to avoid foreclosure.
Can I Sell a House Fast to Avoid Foreclosure?
The short answer is: yes! Speaking to your lender can allow you to dispose of your property and use the proceeds to honor your payments and penalties. With a foreclosure date fast approaching, you may need to sell a home fast. In many situations, cash home buyers provide the best option. You can enjoy an expedited closing process and sell your home as-is while obtaining the ability to pay back your mortgage lender.
Here are a few tips for selling a home to avoid foreclosure.
1. Understand Your Timeline
Foreclosures never happen overnight. According to the Department of Housing and Urban Development, mortgage companies typically kickstart the foreclosure process three to six months after your first-month default. Waiting too long before taking any action can force you to sell aggressively, causing you to leave money on the table. It is advisable to keep your lender in the loop. Most mortgage companies would be willing to support you during the sale process than foreclose and risk losing out through a short sale. Talk to your lender and figure out how much time you have before the foreclosure actually takes place. This could allow you to repay your debt, in some circumstances, or reach out to an investor to sell your home as-is.
2. Account for How Much You Owe
You may need to factor in the loan balance as well as any late fees penalties accrued by defaulting on your payments. Go through your foreclosure communications with your lender to determine how much you’d need to acquire during the sale. Factoring in the amount of equity on the property before you sell a home fast to cash real estate investors can help you save more money to start over.
3. Determine Your Home’s Worth
It’s a good idea to figure out the approximate worth of your home as it relates to the current market. That said, it’s important to note that selling a home to avoid foreclosure may not yield as much as a traditional home sale. Because you won’t be making repairs to your home, staging it, or selling to a buyer who plans to move right in, you’ll want to temper your expectations. If you want to know how much your home might be worth to a home investor, simply reach out, provide some basic information about your property, and receive their fair offer.
Selling a home to avoid foreclosure can save you embarrassment, money, and time. You may also get to save your credit rating. Real estate investors in Kansas City can provide foreclosure help by providing an instant cash offer with a closing date of your choosing. For more information, reach out to Faithful Home Buyers KC.