Don’t let the banks take your equity

How to sell a house before foreclosure

Facing foreclosure is always a difficult time and from our experience people that are facing foreclosure often have a lot of questions about how to sell their house before the sheriff sale. We put together answers to some of the frequently asked questions about selling a house before foreclosure. When you are facing foreclosure time is of the essence so if you have other questions or want to discuss your specific situation, don’t hesitate to give us a call.

Can I sell my house before foreclosure?

Yes you can sell your house in foreclosure. As long as the Sheriff Sale has not occurred you can sell your house before the foreclosure and pay your mortgage off with the proceeds. By selling your house before it is foreclosed on you will be able to save your credit rating and ensure you get any equity you have in the house. There are a lot of fees associated with a foreclosure sale so once it goes to auction it is rare to be able to get back any equity you have in the house. It is for this reason that you want to act as quickly as possible when you are notified of a foreclosure. While you can stop a foreclosure at the last minute the sooner you seek help the more options you have and the more likely you are to be able to save your house or at least get the maximum equity out of it.

Can you stop a foreclosure in the last minute?

Yes you can stop a foreclosure right before a sheriff sale, but don’t wait too long to act. Selling your house can take time so you need to add quickly to avoid getting foreclosed on. Selling your property to an investor like Home Buyer Louisiana helps because we buy houses all the time so we can sum up very quickly what we could afford to pay and can make a quick decision to buy it. Since we are cash home buyers we can also close fast and get your mortgage caught up and paid off before foreclosure.

Can I sell if I owe more than the house worth?

If you have negative equity it does make it much harder to sell your house and avoid foreclosure. You won’t find any cash buyers who are going to be happy to buy your house fast for more than it’s worth. There are options that sophisticated investors can use to still buy your house and stop your house being foreclosed. The investor could work with your bank to negotiate a short sale, which is where the bank agrees to sell the house for less than the mortgage. We will buy houses for more than they worth if we leave the existing financing in place. In a case like this we would buy the house for above market value (This could be what you owe on your mortgage or possibly even more) but instead of using the sale proceeds to pay off the mortgage we would just bring the mortgage up to date and start making the payments on the note. We can pay more on these deals because we don’t have to use our own cash and can buy more houses with our money.

Should I just let the bank foreclose?

This is always an option if you have no equity in the house, but it will impact your credit rating significantly which will stay with you for years. You will find it much harder to get credit and if get it you will have to pay a much higher interest rate than other people. You should always try and avoid foreclosure and there are lots of options to achieve this. If you are facing foreclosure don’t ignore it. If you reach out to us we will help provide some options for you that could save your credit rating and ensure you keep the equity you have in your house, not the bank.

Can you sell your house if it’s already in pre-foreclosure?

Yes, you can sell your house while it’s in pre-foreclosure. Pre-foreclosure is the period after you’ve missed payments but before the house is scheduled for a sheriff sale. During this time, the lender may be open to working with you to pay off the loan balance through a sale. Acting quickly is essential to avoid additional penalties and fees that could further reduce your equity. Don’t bury your head in the sand and get on the front foot. This should include speaking to your bank about options for loan modifications while at the same time looking for a cash house buyer that can buy your house quickly.

How does selling a house before foreclosure affect your credit?

Selling before foreclosure is much better for your credit than letting the foreclosure process complete. A foreclosure can remain on your credit report for seven years, significantly lowering your credit score. By selling before foreclosure, especially if you can pay off the full loan balance, you can minimize credit damage and may even qualify for a new mortgage sooner than if you were foreclosed on. As always acting quickly is important when dealing with foreclosure.

What is the fastest way to sell a house before foreclosure in Louisiana?

The fastest way to sell a house before foreclosure is to work with a cash home buyer. These investors typically purchase homes in as-is condition and can close in as little as a few days. This avoids the delays associated with traditional sales, such as appraisals, inspections, and buyer financing. A quick sale ensures you can pay off the mortgage and stop foreclosure proceedings.

What happens if there’s another lien on the property?

A lien doesn’t prevent you from selling your house, but it will need to be addressed during the sale. When you sell, the lien is typically paid off from the proceeds. If your home’s value doesn’t cover the lien and mortgage, you may need to negotiate with the lienholder or speak to the bank about a short sale.

Can you sell a house in foreclosure without the bank’s approval?

If your house is in foreclosure but not yet sold at auction, you can sell it without the bank’s direct approval, as long as the sale price covers the outstanding mortgage balance and fees. The title attorney will get a payoff figure and pay the loan off at the closing. However, if the sale proceeds won’t cover the full debt, you’ll need to negotiate a short sale with the lender. This process does require bank approval.

Will selling my house stop foreclosure fees?

Yes and No. Selling your house before foreclosure can stop additional fees from accruing but it is likely that some have already been added. Once you’re in foreclosure, fees for legal proceedings, property preservation, and other charges can quickly add up. The sooner you sell, the less you’ll owe in these added costs.

Are you getting foreclosed on in Louisiana?

We buy houses in Louisiana every week and lots of the houses are in Foreclosure. If you are getting foreclosed on reach out to us so we can be an option for you to sell the house fast before you get foreclosed on.