If you are facing foreclosure and see that you are not going to be making your mortgage payment on time or have already missed one payment, then you are in the pre-foreclosure stages. Meaning the bank hasn’t foreclosed on you yet, but it could possibly happen in the near future. This is a time you must act quickly and decide how you are going to go about avoiding foreclosure.
You have several different options you can go with in the pre-foreclosure stage. Today we are going to explore why you should sell your home in the pre-foreclosure period. You will want to investigate as many options as possible, but remember that you are on a time crunch, racing against a bank foreclosure.
Often many homeowners wait until right before a foreclosure auction is to take place, before they decide to sell it as a pre-foreclosure sale. Many times this is due to the homeowners waiting around looking for reprieve from the lender. If you have poor financial standing your not likely to get reprieve, so you should familiarize yourself with the pre-foreclosure sale process.
If you are not in a great financial situation and know you not going to receive assistance from your lender, doing a pre-foreclosure sale is one way to save your credit standing. This is important if you plan on buying another home in the future. If you are officially foreclosed on your credit can be negatively impacted for years.
So if you make the decision to sell your home, it is best to tell your lender, they may possibly give you more time before the foreclosure auction happens. This is important so you don’t have to sell your home at bottom dollar value. Speaking with your lender is a good idea, to let them know where you stand. If they have any last minute solution for you this is the time they can let you know. Otherwise the lender can realize you’re selling your home and you can feel confident that, it’s the right decision.
You can either try to sell it on your own or with a Realtor. The Realtor can most likely sell it faster than you. Being that they already know people in the market looking for a good home. It can also be good if you are emotionally attached to your home and are upset about selling it. This can come across to the buyer if you are showing the home and may discourage their purchase.
If you do end up using the services of a Realtor to help sell your home, you may receive some extra money. This is because retailers tend to sell homes at or around their assessment value. The bad side is, not much of that money is going to be left over after paying your mortgage and the Realtor. The most you can hope for is enough to make other living arrangements. For instance if you going to rent an apartment you’re going to need enough for first, last and security deposit. If you have bad credit, they may even ask for a higher security deposit or possibly you may have to find a co-signer.
The biggest downside to selling your home is loosing your home. This is why most homeowners wait to the last minute. But remember there are other places out there and this is a chance for you to come out from under the stresses of foreclosure and start again. This is a chance to get out from under all your bills and get in a place that is more affordable.
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