My house is facing foreclosure. Can I still sell it?
What is a mortgage default?
Home loans are very common, and most Americans rely on borrowing to finance a house purchase. There is no issue trying to sell your house when you still owe on your mortgage. However, if you’ve missed a few payments, you might run into some issues. Unfortunately, the federal moratorium on mortgage foreclosures has ended; mortgage default rates are rising, and many homeowners have had to deal with potentially losing their properties. Mortgage defaults happen when you fail to pay property taxes, insurance, or your lender payments in a timely manner—usually within 90 days. If you are defaulting on your mortgage, it means your lender will soon have to take your house before you might get the chance to sell.
Can I sell my house with a mortgage default?
Good news—you can still sell even if you owe the bank. Before you decide on your next move, you may want to figure out how much equity you have in your house. It’s important to know the fair market value and compare it to the remainder of your debt. If the value is greater than what you owe, then you will be able to pay the rest of your overdue balance with the profits you get from selling. This is usually called being “above water.” If your house’s value is less than what you owe, you are “underwater,” and you have 2 options: face foreclosure, or try to do a short sale.
What is a short sale?
Short sales are intended as a bail-out option. In order to qualify for a short sale, you must first get lender approval, which often requires you to provide some proof of hardship. Lenders will approve a short sale when the borrower has missed multiple payments, and the house is “underwater.” A short sale releases you from your mortgage debt, while the bank avoids a costly foreclosure at its end.
Keep in mind that both a short sale and a foreclosure negatively affect your credit to some degree, but a short sale affects your credit much less than a foreclosure would. Bad credit impedes your ability to apply for new home loans, as well as other things like auto loans and credit cards. This means that if you do decide to proceed with a foreclosure or a short sale, it may be harder to get back on your feet. It would be best to try and avoid any damage to your credit, since it could take years to remedy.
How do I sell my house with a mortgage default easily?
You don’t want to miss anymore payments, and no one wants to see their credit score drop. To sell your house when it is in default, you’ve got to act quickly. You have about 3 months from when you default to sell your house. The value of your house needs to be determined. You’ll have to notify the lender and get an agent, then find a buyer. As the weeks and months pass, you'll still be responsible for the remaining mortgage. Or you could sell your house quickly for cash.
We buy houses in default for cash
No matter where you are in the process of selling, there’s a lot of risk involved. To make matters worse, it may feel like you might not even see any profit. Instead, selling your house for cash could be a much more viable option. You can get immediate relief from what has eventually become a huge financial burden. You could even put some cash in your pocket.
Close quickly and move on
If you’ve recently defaulted on your house, you have months—if not weeks, to sell. Luckily, we can come to you for a free consultation. We will assess your property and can often give you a no-obligation, all-cash offer on the same day. If you accept our offer, we will handle closing as well. We can close quickly, often in as little as three weeks. That means even if you are facing an impending foreclosure, we can help! You don’t need to worry about any typical closing costs or agent commissions, and we won’t charge any hidden fees. You get to keep that cash for yourself.
We know mortgage default rates are on the rise, and cause many family's financial distress. If you defaulted on your mortgage, time is money, so it’s a good thing we work fast. Here at We Buy Ugly Houses®, our quick process, and all-cash offer will help you sell your house even if it’s already facing foreclosure.
Contact us today for a free, no-obligation consultation and get a cash offer on your house!