Foreclosure. The idea of foreclosure is terrifying for any homeowner. This process leads to eviction and will make it more difficult for you to buy a house in the future or even rent properties.
The last thing anyone wants to deal with is a foreclosure. However, even once the foreclosure process has started you still have options.
A very common question that we hear from homeowners looking at foreclosure is “Can I sell my house if it’s in foreclosure in Florida?” The quick, simple answer is yes.
The Foreclosure Process in Florida:
Judicial Foreclosure
A judicial foreclosure is simply when the mortgage lender files with the courts to repossess the home.
Obviously, if foreclosure can be avoided it is best to try and work with the lender. However, if the foreclosure process has already started there is not much you can do to stop it.
It typically takes around 4 months (or 4 missed mortgage payments) before a mortgage lender will file foreclosure. Sometimes it can take longer before a foreclosure depending on your mortgage lender and other factors.
If you can’t pay what you owe then the mortgage lender will want to sell the home at auction to try and make back some of the money they have lost.
If the house is sold at auction then you will be served an eviction notice and forced to leave the property.
Can I Sell My House Before It Is Foreclosed On?
Yes, you can absolutely sell your property before the foreclosure is complete. We just went over the foreclosure process and by law, the property still belongs to the homeowner up until it is sold at auction.
So you can sell your home at any time before the auction even if the mortgage lender has already started the foreclosure process. Even once an auction date is set you can still sell your home.
Really there are two different ways in which you can work to sell your home before the foreclosure process is over.
Listing With a Realtor
Listing your home and working with a realtor to sell your home has advantages and disadvantages. When your home is in foreclosure you are going to be more pressed when it comes to time to sell your home.
Not to mention homebuyers will want to try to price gouge a bit in order to get the best price for themselves knowing that you’re in a rush to sell.
The biggest advantage to selling your home with a realtor is that this is going to be the best way to make the most money on your home. And if your home is in foreclosure getting the most money out of it is going to help you when it comes to your relationship with your mortgage lender.
Selling to an Investor
Selling to someone who is looking to invest in the property or flip the property is a great idea but comes with its own set of advantages and disadvantages.
If you are nearing your auction date selling to a property investor is by far the quickest and easiest way to sell your home. However, they aren’t going to pay you market value for the property.
They will be looking for something that will provide them with a return on their investment and will often be willing to pay cash for the property. If you are in a tight spot and nearing the end of your foreclosure then this could be the only option that you have when it comes to selling your home.
Working With Your Lender
Your mortgage lender more often than not will be willing to work with you if they know you are trying to pay them back what they are owed. So if you are behind on your mortgage payments and fear that foreclosure is right around the corner you should talk with your mortgage lender.
If you tell them you are looking to sell the property with a realtor and need more time to list the home and get it ready to sell, your mortgage lender might be willing to hold off on foreclosure. The truth is that even your mortgage lender would rather avoid foreclosure if they can.
Dealing with the court, the fees, and selling the home at auction are not ideal things for your lender. So if they know you are willing to work with them they will be willing to work with you.
We Can Help
We know that in life things happen that you don’t expect. Losing your job, a loved one or other situations can drastically affect your life including your ability to pay your mortgage. Don’t be fearful of what the future holds because we can help.
If you are struggling or unsure of what your options are, we are here to help you. Simply give us a call at (941) 743-3700 and we can discuss with you what your situation is and help you to make an informed decision on how you would like to move forward.
No matter what, you have options, so give us a call today to find out more about how we can help you.
