Strategies for Fighting a Foreclosure If You Don’t Want to Keep your Property
Foreclosures stays with you long after the legal process is done. Not only does it have an emotional impact, it can also follow you financially for several years after it is completed, which can make it difficult to secure future housing and regain your financial footing.
One of the biggest impacts a foreclosure has on homeowners is the resultant hit it has on your credit. A foreclosure remains on your credit report for a full seven years from the date of your first missed mortgage payment that led to the foreclosure event.
One way to minimize the impact on your credit and avoid the full economic hardship of a foreclosure may be to sell the property as a means of avoiding foreclosure.
If you’re fighting a foreclosure and want to keep your home, be sure to read this post on strategies to take to keep your property.
What to Do If You Don’t Want to Keep Your Property
Selling your home yourself (rather than letting the bank take it from you) is one effective strategy for fighting a foreclosure, but it also means you will be without your home at the end of the sale.
If you choose to short sale your property, a bank can agree to accept less than the total amount owed on the loan to release the mortgage, but the borrower needs to find an investor or buyer willing to make a reasonable offer to the bank.
In terms of timeline, you are allowed to sell your home anytime up until the day the home is sold at auction by your mortgage lender. If you’re planning on selling your home, talk to your lender. They may be willing to postpone the sale date to give you more time to find a buyer.
Selling your home during pre-foreclosure is one way to prevent foreclosure. You have other options as well. To learn more about how to avoid foreclosure and save your home, read more on our blog and get in touch with our team at Jacobs Legal to schedule a confidential consultation to discuss your situation.