Is It Too Late To Sell My Home if It’s in Foreclosure?

Is It Too Late To Sell My Home if It’s in Foreclosure?

It’s hard not to panic when facing foreclosure, but know that you do still have options and you still have time to take charge and sell your home.

Unexpected events like a job loss, illness, divorce or an accident can cause a sudden influx in bills and leave you temporarily unable to keep up with certain costs of living.

This could soon leave you months behind on your mortgage payments before you receive the heart-stopping notice that your house is facing foreclosure. It’s hard not to panic in this situation, but know that you do still have options, including selling your home. 

Know your rights and understand the process.

Your home is considered to be in a state of “pre-foreclosure” prior to the lender actually seizing the property or selling at an auction, and you can use this time to work with your lender to satisfy your debt – if you think you can. It’s also important to note that in the state of Florida, foreclosure is a judicial matter.

This means your lender needs to go through the rather costly and time-consuming process of filing a lawsuit before foreclosing on your property, a step they would surely rather avoid if they knew you could make payments. So if you’ve fallen behind on mortgage payments, it is worth it to first contact your lender to discuss your options. They may be willing to work with you on a timeline that would allow you to pay them what you owe over the course of a more generous time period.

Selling while facing foreclosure doesn’t have to be stressful.

Remember, you still have time to take charge and sell your home before the lender seizes the property or sells at a public auction. Once that happens, your credit score receives a significant mark, making it difficult, and sometimes impossible, to borrow money to purchase another home or other items like a vehicle. Avoiding foreclosure can help you avoid this headache and preserve your credit score, or at least minimize the damage.

Given the time constraints you’re facing, you have a couple options for selling your home during this time:

Sell to your mortgage lender through a “short sale”

If it looks like you won’t be able to sell for the total amount owed, your lender may agree to accept this lesser amount. This is referred to as a “short sale” and can be beneficial in that the lender may agree to waive the deficiency, and your credit won’t be impacted as severely as it would if you just let the foreclosure process unfold. But at the end of the day, a short sale isn’t good for your credit either (it could lower your credit score by as much as 160 points(1)).

Other disadvantages of going through your lender include the extra time this adds to the process and the fact that they will take a percentage of the sale’s price if they sell your home and may even be able to make you pay the difference if they sell for less than what was owed.

Sell for cash to a developer or other company like Hamby Housing

Selling your house for cash is a lower-stress and more efficient option, especially when you are facing the time-sensitive ordeal of a foreclosure. Selling for cash helps you close quickly since you avoid going through house inspections, executing home improvements and, perhaps most importantly, you bypass the hassle of dealing with your lender in a situation where you likely won’t see any profit and may end up owing money / filing for bankruptcy.

Ready to Sell Now? Talk to Us!

Working with a direct buyer is a fast, safe way to sell your home before it is foreclosed so you can settle your debts and move on with your life. It is also much less stressful and less time-consuming than going through your lender.

Hamby Housing, in particular, offers several benefits: you’ll receive a competitive cash offer in 24 hours, and you won’t be responsible for any repair costs (cleaning, painting, staging or other repairs). You can close as quickly as two weeks after accepting our offer, a crucial benefit given the tight timeline you are facing with a foreclosure.

Whatever the reason for your foreclosure, we know it is a stressful time. We are here to help! If you decide selling your home for cash is the best option for you, contact us to get started.

DISCLAIMER: This article is meant for educational purposes only and is not intended to be construed as financial, tax or legal advice. As you consider your foreclosure options, Hamby Housing encourages you to reach out to an advisor regarding your own situation before making any decisions.


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