Can I Sell My House When it is in Foreclosure?

On the day they buy their home, no homeowner envisions themselves in a position where they’re facing foreclosure. But, an unexpected job loss or economic downturn can result in this unfortunate scenario. A home may undergo foreclosure if the mortgage lender exercises their right to sell a property that the buyer has neglected their payments on.

If you’re dealing with the process of foreclosure on your home, there’s still a chance to sell it. You have up until the lender makes a sale at auction or the bank takes possession of the house.

Foreclosure can be devastating for homeowners who have fallen behind on their mortgage payments due to financial troubles. However, there is a way to turn things around despite this seemingly stressful situation. The entire foreclosure process may take six months to a year to complete after you receive your default notice. So if you’re wondering, “can I sell my home if it is in foreclosure,” the answer is a resounding yes.

What is a Short Sale?

If your Florida home is in foreclosure or pre-foreclosure, you still have a shot at a short sale up to the point that your lender sells the house at auction. When your home is in this position, it becomes a distressed property, so you must sell quickly. A short sale is a quick process in which a homeowner sells the property for less than the mortgage amount, effectively avoiding foreclosure.

The Benefits of Selling During Foreclosure

The answer to “can I sell my home if it is in foreclosure” is yes, if you use a short sale. While this isn’t the ideal scenario, it’s a better outcome for a homeowner than foreclosure. A short sale is still likely to damage your credit score, but not as severely as a foreclosure will. It allows the lender to recover part of the mortgage loan rather than completely absorbing the cost making it beneficial to them as well.

The most significant benefit of a short sale is that it prevents foreclosure. While this is good for both the lender and the homeowner, it also benefits the housing market. Foreclosure negatively impacts the market by decreasing the value of homes.

This legal process affects not only the value of the property in foreclosure but also those close to that property. In part, this is due to a lack of maintenance on homes that foreclose, which can affect the aesthetic of a neighborhood. Short sale further benefits the housing market by making it easier for first-time homebuyers to break into the market with reduced housing prices.

A big part of a short sale’s appeal is that it helps the homeowner take back control. While the rapid pace of the process can still be stressful and unconventional, a short sale more closely resembles the traditional home sale process than a foreclosure, which involves legal action. The homeowner has an active role in the sale process, managing negotiations with the buyer, the real estate agent, and the bank. In contrast, the homeowner must deal with the bank’s attorneys on their terms during a foreclosure.

Opting for a short sale rather than riding out your foreclosure leaves you in a much better position. You can avoid legal proceedings and reduce your debt, making it easier to repair your credit score down the line. Short sale offers homeowners in a tough spot a chance at rebuilding.

How to Sell Your House Before Foreclosure

After you determine the appropriate value of your home, it’s time to list it. You have three options for selling your house before foreclosure:

List it Yourself

If the housing market in your area is hot and your home is in excellent condition, you can consider listing the property yourself. However, this requires a lot of effort on your part to organize open houses on short notice and advertise the listing. It also means handling legal paperwork yourself.

Use a real estate agent

For homes that are not open house ready, or if you’re feeling overwhelmed by your situation, it’s worth getting a real estate agent on board to help you list and sell the property. The downside to this option is that real estate agents work on commission, so once you sell, they’ll take a cut of the sale price. Since you’re already taking a financial hit with a short sale, this can be less than ideal.

Use a cash buyer

When you’re trying to sell a home quickly before foreclosure, a cash buyer is a great option. Like Meli Homes, cash home buyers are prepared to pay cash for your home upfront without taking any commission. This is a quick and easy process that can help maximize the return on your financial investment.

A Cash Home Buyer is the Quickest Way to Sell

When you’re trying to sell your home before foreclosure, speed is a critical factor; it’s a race to sell. Opting for a cash home buyer can help ensure you sell quickly and with no hassle. The process of using a cash buyer can take 30 days or less, which is ideal for this tight timeline.

As with any viewing for a potential buyer, you should prepare your home for a cash buyer walkthrough in advance. Where possible, stage the rooms to maximize their appeal and remove personal clutter around the house. Presenting a tidy, move-in-ready property is a great way to get top dollar.

When you’re ready to show the house in St Cloud, Winter Park, or Tampa and the surrounding areas, contact Meli Homes to set up a walkthrough.

Following a walkthrough of your home, Meli sends you an offer to review. If you decide to accept, Meli handles all the closing and legal fees and provides your payment in cash. You can then pay your lender and move on to the next chapter of your life.

Sell Today With Meli Homes

Meli is a cash home buyer that offers a stress-free solution to homeowners who need to sell a distressed property before foreclosure. If you’re dealing with a foreclosure, consider contacting Meli Homes to buy your home quickly for cash.

Call us today at (407) 338-4183 or fill out our online form to request a callback. We will get back to you within 24 hours to schedule a walkthrough of your property, make a cash offer and help you get your life back on track.

This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Meli encourages you to reach out to an advisor regarding your own situation. Please consult with your advisor when making legal or financial decisions.

Image Credits

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