Selling a home during foreclosure
Florida residents who are facing foreclosure may understandably feel nervous and afraid, but there are many options available that could slow or stop the process. One option involves selling a home.
Foreclosure typically starts after four missed payments and a notice of default. The process might last for about six months or a year but could be longer if negotiations occur between the homeowner and the lender. People can sell a home even after the foreclosure process has started, and this remains true until the bank takes possession of a house or it is sold at auction.
One option is to sell a home and then pay the mortgage company what it is owed. If the house is taken over by the lender, some states might allow a statutory right of redemption. This is a period after the sale where a homeowner can repurchase the property. Intentions to sell a home can give owners more time when explaining to a lender that they wish to pay off the mortgage.
If a home is valued at less than the amount that is owed, an owner could ask for a short sale. Lenders may agree to a short sale because then they do not have to spend time foreclosing and selling property. This process costs money, which makes short sales a possibility and allows individuals to avoid poor credit due to foreclosure.
When a mortgage is in arrears, people may wish to consult a real estate attorney. This could help them negotiate with lenders or restructure a loan. An attorney might be able to go over a contract to find options that could help work something out with a lender.