Are you facing foreclosure on your Berks County home? Is it your intention to sell your home before the foreclosure process is completed? If you want to stop foreclosure on your house, you can actually sell it until the day your home is foreclosed.
Until the title of your home transfers to the new owner, you are the legal owner of the property, which means you can sell it if you want to.
3 TIPS TO SELLING YOUR HOME IN PREFORECLOSURE:
- Make sure you get the right help. You should hire an agent who is familiar with the foreclosure process in Berks County and who understands the nuances of selling such properties.
- Your lender(s) should provide you with a payoff statement. Once the foreclosure begins and lawyers add their fees, interest and fees tend to pile up very quickly. Knowing how much equity you have is crucial. Additionally, you will want to request payoffs for other liens (second mortgage, heloc, judgment liens).
- Make sure you move quickly. The foreclosure process may take a while, but the fees do not. Once you start missing payments, interest and penalties add up quickly and eat away at your equity. If there is any equity left in the property, you should move quickly to salvage it.
But what if there is no equity in the home?
A home with negative equity is very common, especially after a lengthy period of non-payment. It's no problem! Short sales allow you to sell your home for less than what you owe. Your mortgage debt will be settled and you will avoid foreclosure and possible deficiency judgments, even if you do not receive any proceeds.
Do I need my lenders' permission to sell my home in preforeclosure?
You don't. As long as a sale of the property will cover its associated debts in full at closing, you need do nothing but sell and close before the foreclosure sale date. If you cannot cover the debts on the home with a regular sale, you will need to have your short sale approved by your lender. Your Realtor will generally be the one assisting with the short sale process. Make sure your Realtor is experienced with short sales if you need to go down this road.
What if I just walk away and let it foreclose?
That is always an option, however it is a very poor one. The lengthy foreclosure timeline and fees will eat up any remaining equity that could have gone to you. Or even worse - many states allow deficiency judgments. That means if the lender has losses in excess of the home's value, they can pursue you after the foreclosure for those losses.
The best way to handle selling your home in preforeclosure is to deal with it sooner than later. As soon as you realize selling is your best bet, pick up the phone and call James Ernst to see how we can help you sell your home fast.