Why Sell Before Foreclosure?
Foreclosure is one of those scary processes that most of us feel powerless to control, but there is one thing that you can do to stop from being foreclosed on. While a tired and stressed homeowner may think that it really doesn’t matter if they sell or get foreclosed on, it does! Foreclosure is not a good thing, but if you live in a great house, in a great market, and you know you can sell your home, why not go for it? Selling is almost always a better way to go than allowing the whole foreclosure process to take place. Foreclosure can have long lasting and devastating repercussions, so why not sell if you can?
Great Reasons To Sell Your Home Before Foreclosure
What many people do not realize when they are being foreclosed on is that a sales contract will stop the foreclosure process right in its tracks. The thing that homeowners need to understand is that the bank just wants their money. If you put your home up for sale and you get a sales contract the morning of a public auction, all bids are put on hold and your home will not be sold to anyone at the auction. This is a great way to get the bank their money without the hassle and embarrassment of going through a foreclosure. Even the least proud person finds some embarrassment in having their home foreclosed on, but you don’t have to experience this. You can just tell friends, family, and neighbors that you think it’s time to move, they don’t need to know anything about your financial situation.
Another great reason to sell your home before it is foreclosed on is that you can sell it for the market value. What does this mean? For most people this means that they will not only pay the bank back, but also they will be able to pocket some money as well. Not only will this keep you from going through the foreclosure process, it will help you get back on your feet and maybe even have a down payment for a new home. Who knew that a looming foreclosure could actually help you sell the home that you are in now and get a new one?
One of the most important reasons that you should sell before you are foreclosed on is to protect your credit. As most people know, a foreclosure on your credit is one of the worst things that can happen to you. While you may still be able to buy a home and a car, you should expect to have to pay large down payments and you’ll also deal with very high interest rates. Those with a foreclosure on their credit often have a difficult time getting major credit cards with decent rates, let alone home and car loans that are usually more substantial in size than your standard credit card. The great thing about selling before you are foreclosed on is that a creditor will never be able to tell that you were about to be foreclosed on. You won’t have a hard time getting another mortgage because while you may have a couple of delinquent payments, you do not have a foreclosure which is the big black mark where mortgages and car loans are concerned.
Another awesome reason to sell before your home is foreclosed on is that you won’t be required to leave any time soon, if you work out a contract with the buyer. In many states you may be required to leave the home within 72 hours after the highest bidder at an auction won it. It’s not uncommon for sales contracts to give the seller 30 or even 60 days to move out of the home, and this will give you awhile to get packed up, pool your resources, and sort of start over.
How To Sell Your foreclosed Home Quickly
The great thing is that foreclosure doesn’t happen over night. The whole process often takes six months to a year, so you will know that it is coming and you can put your house on the market the moment you realize that you will not be able to satisfy the loan. Putting your home on the market and working with a realtor is probably your best bet because they can bring more traffic to your home and hopefully sell it sooner rather than later. Make sure that there are foreclosure notices in the local papers, as this will bring the investors out of the woodwork. You may not make as much through these investors, but they can give you the cash you need to get out of debt now, instead of compromising your credit with a foreclosure. Luckily, there are many investors and firms that specialize in buying houses that are on the brink of foreclosure, or houses that people just need to sell now for whatever reason. These investors and firms can usually meet with you and purchase your house in less than a week, which means you can decide long before the foreclosure process is in full swing that you just need to sell and get out of the debt altogether and start over.
As you can see, selling is almost always a better idea than allowing foreclosure to be an option. Selling your home will have short-term repercussions because you’ll have to find a new home, but foreclosure will affect your credit for at least the next seven years, but it’s often a lot longer. Anyway you look at it, selling is just a better option if you care about your credit at all. And, we all care about our credit because our credit is our buying power, and in a day in age where credit is more common than cash, we all need to protect our credit and our buying power as much as possible. Foreclosure is avoidable, so put up the for sale sign sooner rather than later so you just don’t have to go through the stress and the hassle of foreclosure.
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