Can I Sell My Home While in Foreclosure?
Yes, and it’s a lot easier than you might think. Selling your property while in foreclosure isn’t any different than selling your property while paying a mortgage. In both cases, a payoff letter is generated (by the mortgage company or sheriff’s deed holder) stating how much you owe, and by when. If you sell your home for more than what is owed, you get to keep the difference.
You might be thinking, “How can I sell my house? I don’t have any equity.” While that may be true, it is not always the case. There can be a difference between what you owed on your mortgage statement and what is owed on a sheriff’s deed. Sometimes the difference is drastic.
It varies, but a 30% (or more) reduction to the balance owed on your mortgage is possible. Lenders are not required to tell you what your sheriff’s deed balance will be before a foreclosure sale. You could be sitting on a large amount of equity you didn’t even know about.
How can I learn what’s owed on the sheriff’s deed?
The only way you can find out is to ask. Ask the attorney that represented your lender on the foreclosure or the sheriffs deed holder for a payoff letter. They are required to calculate the amount that you owe on your sheriff’s deed and provide you a written statement. You might be shocked at how low the number is. We can assist you in obtaining that information as well. It’s a totally free service we provide—you just have to ask! Why should I sell my home?
- Selling your home with the help of a Realtor often generates the highest sales price. This is because of the exposure Realtors can generate to qualified buyers. The higher the sales price the more money you receive at closing.
- If you’re ready to move, selling your property can put thousands, even tens of thousands, of tax free, no questions asked dollars in your pocket while you pack.
- Payoff the foreclosure. Selling will satisfy the sheriff’s deed balance and possibly your mortgage note, making good on the full debt that was owed.
- A fresh start. While selling your home might be a bit of work, doing so can bring you peace of mind, and perhaps end a long struggle with the bank.