During pre-foreclosure, homeowners may have an opportunity to negotiate potential outcomes that reverse the default status of the loan. Many times, options open for discussion including issuing back-dated payments on the loan or negotiating a possible loan modification.
A third option may also be to arrange a short sale and sell your house before the foreclosure happens.
What to Know When Selling Your Home During Pre-Foreclosure
If your lender is actively pursuing foreclosure eviction, keep in mind that it is a long process, and during that process, you have many options to consider. If selling your home is one of them that you are interested in pursuing, you have an opportunity to sell the home up until the home is sold at an auction or sale arranged by the lender.
While we recognize that selling your home can be a devastating experience, losing it to the bank may be worse. By taking charge of the situation, you won’t have your home foreclosed upon and you won’t damage your credit nearly as badly either.
If you plan to sell, notify your lender that you plan to pay back all debts and penalties owned by selling the property and ask them to postpone a foreclosure auction or sale. Foreclosures cost banks a lot of money too, so they are often open to agreeing to a short sale.
As you prepare to list your home, it’s important to have a strong team at your side. Find yourself a real estate agent who specializes in short sales and get in touch with us at Silverberg|Brito, PLLC too for legal guidance. Laws surrounding foreclosure vary by state. Protect your rights and prevent further challenges with your lender by engaging with us early in the pre-foreclosure process.