Can You Sell a Home in Foreclosure?
Yes, you can. Here’s why.
Foreclosure begins when your home loan lender (most often, a bank) files a motion to foreclose. The motion will be filed in a court of the county in which your home or property is located.
However, the property still has to be put on sale by the bank. Until the property is sold at a foreclosure sale, then you still hold the title to the property.
You still retain ownership of the home until it is sold. Because of that, you could potentially sell the home while it is locked in foreclosure proceedings.
Will You Need to Tell the Bank That You Are Selling?
Ultimately, the bank wants to get the mortgage paid. Because of this, they may be welcome to the idea of selling the house while it is still in your possession.
If the sale of the property will fall a bit short of what is owed to the bank, then you will need to talk to the mortgage holder. You will be interfering directly with money that is owed to them via mortgage, so it will need to be known to the lender.
If your property has raised in value since you took out a mortgage, you have gained positive equity. By selling your property before it is foreclosed on, you could pay your lender the amount they are owed and still retain some of the home’s value.
By using positive equity, you could also stand to profit from the sale, eliminating the possibility of foreclosure and giving you more cash in your pocket.
You could also talk to your lender about doing a short sale. A short sale is a sale that may not meet the amount owed to the lender. A short sale could forgive the foreclosure, but it is highly unlikely. This possibility of loan forgiveness is a critical component of why you need to talk to a lender during the process.
A short sale could also be much better than letting a lender foreclose on the property. While your credit score could still be severely hurt, a short sale is preferred compared to going through a foreclosure.
Sell Your Home to Fast House Sale
No matter if you have positive equity, negative equity, or just need to sell to get out of foreclosure, Fast House Sale can help. We can make you a cash offer in as little as 8 hours. If your home is about to be foreclosed, get out of it by getting out of your house. Contact us today to get your quote fast.