When a house goes into foreclosure, the bank is beginning a process of repossessing the property that has a bond. Generally, foreclosure proceedings begin after one or two late payments and can take up to a year or more to complete. While the foreclosure process is ongoing, the homeowner has a variety of options.
Can I Sell My Home During Foreclosure?
Yes, you can still sell your property during foreclosure, as you still have the legal right to the property and whatever value you have accumulated in it. Many times, homeowners will try to negotiate a short sale with the lender. Short sales allow the property owner to sell the home for what they can get for it. The bank generally forgives any outstanding balance or can only claim a portion of the balance in accordance with state law.
You may be able to get a stay of foreclosure
Although selling the property is an option, your lender may stop proceeding with a foreclosure proceeding. This can be done by filing for Chapter 7 or Chapter 13 bankruptcies. During the time of stay, it is possible to work out an alternative payment plan. If you file for Chapter 13 bankruptcy, your debt will be reorganized and the stay will remain as long as all payments are made in accordance with the bankruptcy plan.
Know your rights under the law
You may want to consult with an attorney before taking any steps to sell the home during foreclosure. Ideally, you will work out a payment plan with your lender, sell it short, or sell it outright. Before you sell it short or sell it outright, make sure there are no provisions in your mortgage that prevent you from paying up front or that prohibit you from making a deal. With the help of an attorney, it is possible to delay a foreclosure without filing for bankruptcy while still allowing a borrower to sell their home.
Can I sell my house? That is probably the biggest question on your mind when you first hear that it is being executed. Fortunately, the answer is yes, and there may be no penalties for doing so. So don’t be afraid to put your home on the market instead of leaving your fate in the hands of a bank.