Can I sell my house if I am behind on payments and avoid foreclosure?
Short answer is YES! But no matter if you want to keep the house or sell it to avoid foreclosure, you need to move fast. Do not wait… time will kill any deal you can make on your home.
It is very important to avoid foreclosure! A foreclosure will be on your credit for 7 years! It will drag down your credit score that entire time, and make everything more difficult. It will make it harder to rent, harder to buy another home, and will increase interest rates on any loans you do get approved for. So please act fast.
Follow this guide or call me directly and I can walk you through everything you need to do. This offer is open even if you are looking to KEEP your house and need options!
First, you must find out a few pieces of information.
- How long do you have before the foreclosure on your house?
- How much do you owe in total to catch it up?
- If you want to stay in your house are you able to? Can you make future payments?
- Do you have equity? Meaning do you have a spread between what your house is worth and what you owe on your mortgage?
#1 Call your mortgage company!
If you want to avoid foreclosure call the mortgage company and see if there is anything they can do to help you. Many times they may offer you a forbearance (this allows you to skip a certain number of payments) or a loan modification ( this may reduce a payment, or interest rate, or both). They may offer you an option to catch up with a payment plan instead of foreclosing on your home. The best course of action to start is to start by calling your mortgage company, let them know what your situation is, and find out what options they have for you.
#2 Call a real estate agent
This doesn’t mean you need to sell your home. It just means you are collecting information! A real estate agent will tell you what they may be able to get for your home if they put it on the market. If it is worth enough to pay off your loan, any back payments and fees, and any agent commissions and closing costs, this may be a very good option for you.
A few things to think about with this option. Make sure you KNOW how much money you get IN HAND at the end of the sale after everyone is paid. Second, do you have enough time to sell your home before a foreclosure happens? Sometimes it can take months to sell and close on a home. PLUS to make the sale go through you may need to make some repairs to the house.
#3 Call a real estate investor or 2!
You should consider contacting a real estate investor so you can act fast if needed. Avoiding foreclosure is so important. Investors can usually buy quickly. I know many that can close in less than a week! They buy as-is so you don’t have to make any repairs to your home. And some can even buy if you owe too much on your house. A good investor can give you a lot of options when it comes to avoiding foreclosure. I know that many times when I purchase houses from people I am able to give them MORE money in their hand than they would have gotten any other way.
Plus most investors know the process you MUST follow to get your house out of foreclosure. If you don’t do everything just right, the mortgage company may reject payments made and move ahead with the foreclosure.