Can I Sell My Home If I’m Already In Foreclosure?

One of the most common questions asked by homeowners across the country and Austin in particular is if they would be allowed to put their home up for sale if it were to go into foreclosure. The short answer is yes. Ownership is not transferred from the current owner until the day the lender sells it at auction. It doesn’t matter if the mortgage is underwater (a situation in which the value of the home is less than the amount owed on it) or if enough equity has been built up so that the value is beyond the total mortgage. The home belongs to the homeowner until it doesn’t anymore. The lender will certainly begin the process of repossession, or foreclosure, once the borrower begins to fall behind on payments, but that is a process that can take several months to several years in some cases.

What Is A Short Sale & When Is It Appropriate?

There are some situations in which a short sale may be the best course of action for a homeowner who has fallen behind on mortgage payments. Short selling simply means putting the home up for sale for an amount less than what is still owed on the mortgage. Homeowners who are in financial distress and have determined that they can no longer make their mortgage payments are often encouraged to take the short sale route. It is recommended by most real estate brokers to list the home before the first payment is missed if at all possible.

In Foreclosure Austin, TX

How Does Positive Equity Impact The Foreclosure Process?

In the unfortunate event that a borrower is facing financial hardship but his or her home is actually worth more than what is owed on the mortgage – what is known as positive equity – putting it up for sale as a fair market listing can end up as upside for all parties involved. The key in this situation is to act quickly. The lender will proceed with the foreclosure process once it is determined that the payments can no longer be made, so it is important to have the house listed before the foreclosure sale occurs. If it is done right and the borrower is able to sell the home, the lender gets paid and the borrower may end up with a little cash left over and no harm done to his or her credit rating.

Missing Payments

It doesn’t take long for lenders to begin the foreclosure process. Typically after two payments have been missed they will issue a letter demanding that the borrower pay the past due amount. Once three payments have been missed – usually after the 90-day mark – the lender starts foreclosing on the home. Once notice is given to the borrower that they have defaulted on their mortgage, they are given an additional 90 days to discuss payment options with the lender and possibly modify the loan. But since the foreclosure process has already begun, the real estate agent is going to be proactively marketing the home for sale, so it’s best to try to beat them to the punch and do everything you can to make the sale yourself.

Contact Tally Two Investment Group In Austin

Is foreclosure looming and you haven’t been able to sell your home? If you’d like more information about the foreclosure process or have questions about how we can buy your home quickly for cash, please contact us in Austin today at 512-763-0883.