Real estate is one of the most coveted investment plans for most people because of the security it provides both as an asset (or an income generating project) and as a basic need (shelter). It is also an investment that demands lots of financial resources over a period of time. This presents the risk of foreclosure. As a homeowner or a potential one, you need to understand what it is all about and how to handle it.
In order to lay the foundation for the discussion, the best place to start is at the beginning. Elizabeth Weintraub gives a comprehensive definition of foreclosure and its implications:
What Is a Foreclosure?
Home buyers who want a good deal in real estate invariably think first about buying a foreclosure. They think, sure, I’ll do a little work to get a cheap price. They believe banks are desperate to dump these awful homes, and that’s not true, either.
Some well meaning buyers have this picture in their mind of a cute little house, surrounded by a white picket fence that is owned by a widowed mom who fell on hard times, but that scenario is generally far from reality.
The real picture is often ugly.
A foreclosure is a home that belongs to the bank, which once belonged to a home owner. The homeowner either abandoned the home or voluntarily deeded the home to the bank. Read more at The Balance…
You need to know how your state legally handles foreclosures so that you are aware of what to expect.
If you happen to have a house in foreclosure, what are your options? Can you sell it? Lisa Gordon answers this question exhaustively:
Can I Sell My Home If It Is in Foreclosure?
Foreclosure is a long and heartbreaking process for a homeowner. But, it’s not hopeless. When looking for a solution to defaulting on their mortgage payments, many owners float this question: “Can I sell my home if it is in foreclosure?” The short answer is yes.
Up until the home is sold at auction, you can rescue your home by selling it and paying the lender everything you owe, including back payments and penalties. And in some states, you are allowed a “statutory right of redemption.” This is essentially a take-back period after the foreclosure—from 30 days to as much as two years in some places —in which you can repurchase your home.
“If you can pay off what you owe the mortgage company, including all interest and fees, you can take the home back or sell it if you have a buyer,” says Lou Sansevero, a Realtor® with Atchley International Realty, in Lakewood Ranch, FL. Read more at Realtor…
When your house goes into foreclosure, all is not lost. You have the opportunity to get it back or selling it so that you can pay your lender.
Finally, if selling your house is your best way out, the following post has some advice for you:
Sell Your House before a Foreclosure
It is truly a hard decision for many homeowners to have to say goodbye to their homes due to an impending foreclosure. Unfortunately, the real estate crash and the downturn of the economy have led to many property owners suffering financial distress and at risk of losing their houses. Foreclosures are also not at all beneficial to property owners, so being able to avoid them will be good for their credit standing.
An option to avoid a foreclosure is to sell the property in a short sale. The house will be put on the market with a huge discount, less than what the homeowner owes the bank. While this does not save them from the debt incurred, it will cover most of it. There are also other reasons why this is a better option (not to mention you get a cash offer rather than having to wait for your buyer to get approved by the bank): Read more at Home Buyer Houston…
A short sale is a good opportunity for you to save yourself lots of trouble. Luckily, you don’t have to sweat to get someone to buy your house on short sale before foreclosure.
If you need to sell your house in El Portal, FL and are looking to make a short quick sale, then Sell Fast Fair Offer is the place to go. We specialize in ensuring that clients are relieved of the stresses associated with owning a house in foreclosure.
We buy houses at a fair price, in whatever condition they are in. We will also take care of the seller’s fees so you don’t have to worry about that. You’ll have your house sold in 7 days, stress free! Call us on 305-519-8500 or fill the contact form below to get started.