How to Sell a Home in Preforeclosure

The financial climate is constantly changing, and many homeowners in the United States are facing foreclosure because they are unable to make mortgage payments. This happens for many reasons, but even if you find yourself in this unfortunate situation, there are still certain things you can do and solutions you can find. One of the solutions is selling your home in preforeclosure before the actual foreclosure happens. 

What Is Foreclosure and What Are Its Consequences?

In order to better understand how the preforeclosure sale works, it is important to understand the fundamentals of foreclosure first. 

Foreclosure is when a lender seizes the mortgaged property and sells it to a new buyer after a homeowner fails to pay mortgage payments. Many homeowners do not realize though that if the foreclosure does not cover the homeowner’s debt that the lender needs to recoup, they can legally sue the homeowner for the difference. And in most cases, that is exactly what they do. In addition, homeowners who have been foreclosed on will also face financial problems. This is because foreclosure causes a serious credit score decline. It usually takes at least seven years for a homeowner’s credit to recover.

Therefore, it could be concluded that allowing your home to be foreclosed on could cause serious financial problems that may take years, if not decades, to resolve. A foreclosure remains one of the most devastating financial experiences that you can have. 

Can You Sell Your Home in Preforeclosure?

Yes, you definitely can. You still remain the owner of your home up until the foreclosure sale. Until your home is sold at auction, you still have a chance to rescue your situation by either coming up with the mortgage payments or selling your home quickly in order to avoid the consequences of foreclosure. Selling your preforeclosure property is absolutely legal, and it is one of the best and most effective solutions. 

However, if you decide to do it, there are some things that you should know. First of all, you need to find an experienced agent who will help you sell your home with the intention of paying off your mortgage. The mission of an agent is to help you understand the real estate market and negotiate during the process. 

You should also call your lender and notify them about your intention to sell the home. It is important to do this because many homeowners find themselves on the hook for the remaining balance of the mortgage debt even after selling their property. Usually, homes are sold for less than what homeowners owe their lenders, and lenders legally can pursue homeowners for the unpaid amount. 

How to Sell Your Preforeclosure Home Quickly?

If the foreclosure process has already started, and you want to sell your home as quickly as possible, the best and most effective solution for you is to sell your property to a real estate investment company. They buy homes for fair prices and do it quickly. They do not require homeowners to make any changes, renovations, repairs. They buy properties as is. By selling a home to a home investor, homeowners get quick cash and avoid the messy and devastating complications of foreclosure. 

Sell Your Home Fast to KM Home Buyers

If you own a preforeclosure home in Hillsborough County, Pasco County, Pinellas County, Hernando County, or Polk County that you want to sell as quickly as possible, KM Home Buyers are ready to help. We are a home investment company in the Tampa Bay area that purchases all types of properties. Our mission is to be your professional and hassle-free option for the sale of your home. If you are facing foreclosure, do not wait too long. Contact us immediately to find out how we can help you.