Your Guide to Selling Property in Foreclosure
Unexpected events can result in financial hardship, which can make it difficult for you to continue paying your mortgage. If you are at risk of facing foreclosure in Oregon, you have a number of options to help you avoid foreclosing, losing your home, and taking a hit on your credit score.
One way to avoid foreclosing is to sell your property and use the proceeds to pay your remaining debt. You are allowed to sell your home in different stages of the foreclosure process, but time is of the essence, and the longer you wait, the longer it becomes more difficult to sell. Here’s a quick guide to selling your Oregon house in foreclosure.
Understanding the Foreclosing Process
As soon as you miss your first payment, you are already in the pre-foreclosure stage. Your lender may try to contact you or offer debt restructuring to make your payments more manageable during times of financial hardship. During this time, you can sell your property without repercussions from your lender. After 120 days from your first missed payment, your lender can issue you with a notice of foreclosure and begin foreclosure proceedings.
Once they begin proceedings, you can still sell your home before it is officially foreclosed. However, you will need to get the lender’s approval to sell, which you can either do in a regular property sale or in a short sale. If you go with the latter, all proceeds will go towards paying off your debt.
After your house is officially foreclosed, you lose possession of your property in favor of your lender. Your lender will then sell or auction off the property and recoup their losses from the sale. Aside from losing your home, foreclosing can negatively affect your credit score, which can make it difficult for you to recover from financial hardship.
Selling in Pre-Foreclosure
If you want to proceed with selling your home, your best option is to sell before you receive your notice of foreclosure. Depending on your home equity, you can both pay off your remaining debt and still have remaining funds you can use elsewhere. It also gives you the most flexibility to sell on your own terms. However, given that you have 120 days after your first missed payment, time is of the essence and you’ll need to sell fast.
You can go the traditional home selling route of listing your property and hiring a real estate agent. However, this can have its risks. The average house in Oregon takes 78 days to sell – 43 days to get an offer and 35 days for the closing period. If the factors are in your favor, you could get an offer fast – but that’s a risky what-if considering you only have 120 days before you receive a foreclosure notice.
There’s also your home equity to consider. The costs of selling a home can add up: just the real estate agent commission and closing costs alone can eat up to 11 percent of the asking price. If your remaining mortgage covers 90 percent of your property market value, that not only means you won’t get anything from your sale, but you’re actually paying out-of-pocket to sell your home.
Sell to a Professional Home Buyer!
In these cases, selling to a cash home buyer in Salem, Oregon is your best approach because it takes away the two problems of selling your home in pre-foreclosure: the limited time you have and the added costs of selling a home.
Rather than listing your property and waiting for an offer, cash home buyers can give a fair offer within 48 hours or less after viewing the property. After you accept the offer, you can close the deal in as little as 14 days. This is a faster turnaround time than the state average of 78 days.
Cash home buyers also reduce the costs of selling a home. Professional home buyers purchase properties as-is, meaning you do not have to spend on repairs or renovations to attract buyers. You also do not have to pay for commission fees or closing costs. This can reduce your expenses and give you the chance to earn some equity back on top of the cash needed to pay off your mortgage debt.
Contact Quality Homes Reimagined, LLC for More Information
It is possible to sell your home to avoid the pitfalls of foreclosure and how it can affect your financial stability. However, you need to consider the limited time you have to sell, as well as the costs of selling a home that can eat up your proceeds. If you want to avoid both, selling your property to Quality Homes Reimagined, LLC may be your best solution.
Contact us today to schedule a property viewing and receive a fair cash offer in 48 hours or less.