It’s possible to sell a house in foreclosure, but it’s a complex process with several risks and legal issues. In most cases, when you are in foreclosure, the bank or lender has already taken legal action to begin the foreclosure process. Your lender could try to take your home to satisfy the debt, so you’ll need to know all your options before attempting to sell your house in foreclosure.
Know What Stage Of Foreclosure You’re In
First, you need to know exactly what stage of foreclosure proceedings you’re in. There are three stages: pre-foreclosure, foreclosure auction, and foreclosure sale. In pre-foreclosure, the lender has initiated legal action to begin the foreclosure process, but you still have time to catch up on your payments and include the missed payments in a settlement with the lender. In either of these stages, you have the opportunity to negotiate with the bank or lender and attempt to sell the house of your own volition. The lender may be more than willing to accept a sale as a way of avoiding the costly foreclosure process.
If the foreclosure auction has already taken place, it’s too late to negotiate with the lender and, unfortunately, you no longer own the property. Once the property has been auctioned off at the foreclosure sale, the person who bought it owns it, and you cannot legally sell it without their permission.
Research The Market
Once you understand which stage of foreclosure you’re in and what your options are, it’s time to research the market for potential buyers for your home. Foreclosures are typically more difficult to sell because lenders tend to demand a large down payment and often the repairs to the property may not be in line with current standards. To make the property attractive to prospective buyers, you should look into attending foreclosure auctions to get a better idea of what the market values are, and have an estimated cost of repairs so you know what expenses you may incur.
You may be able to save your home by obtaining a loan from a non-traditional lender, in which case you’d still have to spend time and energy to present the house to prospective buyers. If you attempt this, it’s important that you and the lender, fully understand the risks associated with this decision.
It’s also important to understand the tax implications of selling your home in foreclosure. Foreclosures are considered taxable income, so it’s wise to consult a tax attorney to get an accurate assessment of your total tax liabilities.
Real Estate Attorney
Finally, if you’re considering selling your home in foreclosure, you should have a real estate attorney in hand to help you with the legal and financial aspects of the process and to ensure that your rights are protected. With the right guidance and preparation, it’s possible to sell your home in foreclosure and avoid the need to turn it over to the bank or lender.
We specialize in helping homeowners in situations including foreclosure around Miramar and the whole state of Florida get out of difficult situations and avoid foreclosure. In certain circumstances, we can negotiate directly with the bank to reduce the amount you owe and (sometimes) even help you walk away from your property with cash.
If you need to sell a property near Miramar, we can help you.
We buy properties like yours from people who need to sell fast.