Can You Sell Your Home if It Is in Foreclosure?
If you’ve received a foreclosure notice, you’re probably exploring the various options available to you. You might have thought about trying to sell your home before the foreclosure is finalized. But is that something you’re even allowed to do?
Generally speaking, yes, you can sell your home while it’s in foreclosure. For many homeowners, this is an excellent option, since it can minimize the impact that a foreclosure would have on your credit score. Selling your home, rather than waiting for it to be foreclosed upon, will likely make it easier for you to apply for a new mortgage, rent an apartment, or secure other loans (for example, loans to buy a car or pay for medical expenses).
With that said, there are a few things that you’ll need to keep in mind when selling a house that’s in foreclosure:
- Deadlines – You’ll need to complete the sale before your foreclosure auction date. As such, you might want to consider a cash buyer, since cash deals tend to close much more quickly than financed deals.
- Updates – It’s important that you inform your mortgage lender about your plans to sell the property, and that you keep them updated about any progress you make with the sale. Banks are often happy to let homeowners proceed with sales, since it takes the burden off them to sell the property, but you’ll need to show them that you’re making a genuine attempt and not just trying to delay the foreclosure.
- Short sales – If you can’t sell your home for the amount you still owe to your mortgage lender, you’ll need to get the bank’s approval to sell the property for less than the amount owed (this is referred to as a “short sale”). An experienced foreclosure attorney may be able to help you obtain a waiver of deficiency, which would spare you from having to pay back the amount still owed after the sale.
Ready to Sell Your Home?
If you’re considering selling your home while it’s in foreclosure, it’s important to partner with a knowledgeable attorney who can help guide you through the necessary steps. Luckily, if you’re in the Tampa Bay region, you can turn to The Lyons Law Group, P.A., for assistance. We have offices in New Port Richey, FL, and Spring Hill, FL, making us a convenient choice for residents of Pasco County, Hernando County, and other nearby communities. Plus, as one of the area’s premier real estate law firms, we have extensive experience defending clients against foreclosures using case dismissals, loan modifications, short sales, cash for keys, and other strategies.
Contact The Lyons Law Group, P.A., today to schedule a free initial consultation at the location of your choosing. Once we’ve learned about the circumstances surrounding your foreclosure, we’ll walk you through the available options and advise you on whether you should pursue selling your home. We look forward to meeting with you and helping you find the solution that’s best suited to your specific needs.
