Selling a Property Currently in Foreclosure
Provided by HG.org
The foreclosure process is often long and arduous for someone that could not keep up with mortgage payments or other liens on the home. However, for those in the middle of this procedure, there may be options open in how to proceed without losing everything.
This means that the persons living in the home may remain until the matter has been fully settled. In order to avoid a zombie title where the debts may still accrue for various reasons, the homeowner should remain stationary and seek the assistance of a real estate lawyer and research the issue. This could lead to a more positive outcome.
While the foreclosure process is ongoing, it is still possible to sell the house at a profit. If the property has not been sold through an auction yet, it may be sold by the current owner for more than what is owed through mortgage payments. This would then provide enough income to pay off the real estate debt and have money left over so that a new house may be purchased or a home may be rented or leased. However, this must be done before auctions are utilized to sell the property for foreclosure processes. This means swift action and legal and valid paperwork.
Aspects to Consider with Foreclosure
When someone cannot pay the mortgage or loan monies needed to keep the account active, he or she may deal with a bank agent that initiates the foreclosure procedures. However, because these processes take months to years depending on various factors, the homeowner may be able to consider other action. In certain situations, the financial lending agency may seek another option than foreclosure. It is possible that an extension may be provided for payment. A new payment plan or refinancing with addenda to the previous contract could occur. Because of possible other routes available, it is best to contact and communicate with the company before abandoning the property to foreclosure.
Others analyze the contract with the lending facility to determine what may be possible based on the fine print. There may be a grace period to obtain the necessary funds, or there could be another company that is contacted to ensure the payments are received at a lower interest rate or payment amount. If this is not possible, it is best to seek the assistance of a real estate lawyer before starting any other action. He or she may explain that selling the property could be the best option. However, there may only be so much time available to do so for the homeowner. This means that he or she should ensure all that information is known before continuing with a sale before auction sales.
Using a Real Estate Agent or Real Estate Lawyer
When an experienced and knowledgeable real estate agent is used while the house is in foreclosure processes, he or she may be able to contact the lending agency and attempt to negotiate so that the property has the time to sell. Even if the bank or other institution is not amenable to dealing with the homeowner, the agent on the case may find this arrangement beneficial to ensure funds are received. A realtor may need to complete a market analysis on the property to discover the actual value before the sale is possible. Then, third-party authorization forms are usually needed to negotiate with the bank. Generally, it is better to sell the home with a profit than a short sale or auction where the owner of the house gets nothing after it has been sold to the purchaser. Lending agencies are find working with the sale a better option than foreclosure due to the foreclosure procedure costing the company money in addition to not necessarily obtaining all owed funds.
Times may differ, but a short sale that provides no money to the owner could take 90 to 120 days. During this period, the homeowner may still be paying on the mortgage. Periods taken for foreclosure processes may take varying weeks or months based on the state where the house resides. Sometimes, the finalization of all paperwork may take up to or longer than a year. To resolve a delinquency of payment, the owner usually has up to 90 days depending on the state so that the matter may be closed and normal processes may continue. However, if this is not possible, a realtor or real estate agent should be hired to assist with selling the home. To ensure everything is valid, legal and processed correctly, a real estate lawyer should be hired for these issues from start to finish.
Read more on this legal issueCan a Lawyer Help Me Defend Against Foreclosure?
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Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.