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Have you found yourself in a financial bind and need to sell a house to avoid foreclosure? Maybe you’ve even asked yourself, Can I sell my house to avoid foreclosure? While each situation is different, in most instances you can avoid a foreclosure auction altogether. There are some ways to sell a house to avoid the foreclosing process. Foreclosure can affect more than just your credit. However, you do have a few options available.
Many people do not understand the foreclosure process. Honestly, they just want the answer to the question: Can I sell my house to avoid foreclosure? The goal, of course, is to avoid the foreclosure auction if there’s any way to do so. Foreclosure doesn’t happen out of the blue.
Maybe you got laid off at work, lost your job, lost a second income, or hit a rough spot financially. It happens to everyone at some time or another whether it’s illness or job related, a few house payments go unpaid. Once you have missed three and are 90 days behind on mortgage payments, lenders can start the foreclosure process. If you have not received a Notice of Default (NOD), there is still time to work out a deal with your lender.
The lender will record a public notice that you are in default on your mortgage payments. The NOD is often posted on your front door. This is still considered a grace period and you still have three months to find a way to get out of “default” status on your loan. You may work out something with the lender, take out a separate loan to bring your mortgage up to date, or any other option, including to sell a house to avoid foreclosure.
If you have not been able to get out of default three months after the NOD, the lender will set a date to sell the property at auction. At an auction, your home will be sold to the highest bidder whether it is enough to pay off the mortgage or not. The homeowner will still be responsible for any balance remaining on the initial mortgage if it didn’t get covered by the auction.
One reason many people want to sell a house to avoid foreclosure is that the foreclosure affects a lot more than just your credit rating. In most instances, after a home is lost through foreclosure, the individual’s credit score drops about 250 points on average. It can take at least three years of making every single payment on time to restore the initial credit score. Besides being devastating to your credit score, there are other areas affected. These include:
Have you been saying, Just stop my foreclosure! You have options. There are always options, even if you just want to sell a house to avoid foreclosure. Look at the options you have available to see which one will work best for your situation. Every individual situation is unique, and finding an option may take creativity, but there is always a way out of a foreclosure. Here are some options to explore:
We understand that facing foreclosure is a scary and stressful time for you. That’s why we’re here to answer any questions you might have about the foreclosure process. At Southern House Buyers, we’re here to help you. Ready to sell, or just have a question? Give us a call at 832-356-0371. We’ll give you a no obligations cash offer to help you stop foreclosure in its tracks!