Foreclosure is a scary thought for every homeowner. Even if you are financially stable and confident about making the mortgage payments, there is always a possibility of things turning bad. So, what are your options when you are under the threat of foreclosure?
When faced with foreclosure you would probably ask about how to sell my house fast during foreclosure as selling your house may seem like the best way out. But it is not always the case and the first thing you should try to do is to negotiate some sort of deal with the lender. Lenders often understand the hardships faced by people and are willing to cooperate if they show enough proof of financial trouble. Now if that doesn’t work out then you can try to sell a house fast during your foreclosure.
What Exactly Is Foreclosure?
There is a lot of misconception about the foreclosure procedure, thanks to some pop culture depictions of the matter. No, you won’t be escorted out of your house in handcuffs by the town sheriff the day after you receive your payment overdue letter.
Foreclosure is a legal process that starts when you default on your mortgage payments. Under foreclosure, the bank or the lender can take possession of your property if you cannot make mortgage payments. However, it is an elaborate process and anytime during this process you have the option to sell the house.
Different states have different rules for foreclosure. Some states have judicial foreclosure, some have non-judicial foreclosure and some states use both.
Judicial Foreclosure: In a judicial foreclosure, as the name implies, the lender has to file a lawsuit to start the process and the borrower has the option to fight this lawsuit. The lender can auction the house only if they win this lawsuit, which is the case most of the time.
Non-Judicial Foreclosure: A non-judicial foreclosure is an out-of-court process where the lender can initiate the foreclosure process subject to state statutes. This process is favored by lenders in CA as it is far quicker and more economical than a judicial foreclosure.
Can I Sell My House During Foreclosure?
When you receive those payment overdue notices you may think that all is lost and there is nothing you can do now but you can actually try to sell the house during your foreclosure right until the auction day. In fact, it might be the best course of action for you. Your other options are loan rearrangements and filing for bankruptcy.
The first option depends on the lender and the second option is complex and can affect your credit score for up to 7 years, which you would want to avoid. So, the only acceptable alternative is to go for a quick home sale.
How Do I Sell My House During Foreclosure?
Selling a house during a foreclosure is a time-sensitive task and you would need to sell a home as quickly as possible under these circumstances. Here are two ways to sell a house fast in foreclosure.
1. We Buy Houses For Cash Companies:
When the threat of foreclosure is looming over your head, one of the safest ways out is to get cash for homes from a cash buyer. These cash buyers, known as “we buy houses for cash” companies, can close a house deal in a matter of days instead of the months-long traditional procedure. They are also one of the most convenient and easy ways to sell a house, so you don’t have to take any additional stress that comes with the tedious task of managing a house for sale.
Reasons to Consider a Cash for Homes Offer:
- They are the fastest way to sell the property off the market. Expect a closing in as few as 7-10 days.
- The sale process for a cash for homes deal is extremely easy. The buyer takes care of all the paperwork and you just have to sign the deal.
- Selling to a “we buy houses for cash” company is also very convenient as there is no need for you to clean the house and stage it for visits from potential buyers.
- These companies are also known as “we buy houses any condition” which means that you can sell a house quickly without wasting any time on repairs.
As for reasons to avoid a cash home sale, there aren’t many. The biggest disadvantage you can have in a cash home sale is to get a lower price for your house, but considering the circumstances of a foreclosure, this disadvantage would not be that much of an issue.
2. Consult With a Real Estate Agent:
One of the first things that come to mind when thinking about how to sell my house fast is to approach a real estate agent. Selling your house through a real estate agent has its own strengths and weaknesses.
An agent that knows the market can sell the house for the highest price and they know how to present the house in the market. Despite these advantages, during foreclosure you are on a strict timeline and selling a house through listing can take a long time. Even a good real estate agent will take at least 30-45 days for closing. If the foreclosure is imminent then you cannot afford such delay, and this option becomes invalid. A real estate agent may be a great option if you have enough time to spare, but most of the time in foreclosure you will not have that luxury.
If you are faced with the imminent threat of foreclosure and want a quick home sale before the lender auctions it, consider contacting John Medina Buys Houses. We are a “we buy houses for cash” company based in CA that buys homes in any condition, even houses in foreclosure. We firmly believe that ethical business practice is vital for our business growth and as a result of this approach we always try to do what’s best for our clients. So, visit our website and get a completely fair offer for your foreclosed home today!