Selling A Pre-Foreclosure Home In Jacksonville FL

Are you looking to sell a pre-foreclosure home in Jacksonville FL? Losing a home due to not being able to keep with payments is a problem that many homeowners unfortunately come across. Foreclosure can be a traumatizing event to go through, and nobody likes fighting with banks over the possession of their property. The good news is, there are several options to choose from in order to avoid foreclosure completely and avoid losing your home to a lender. Even if you do believe that selling your home will be the best option, it can be beneficial to go over all of your options before you decide on that route. This post will go over those options.

 

What Is “Pre-Foreclosure?”

Pre-foreclosure status begins when your lender files a default notice on your property (usually after missing their fourth payment) which informs the property owner that the lender will pursue legal action toward foreclosure if the debt isn’t paid. Depending on the negotiations between the lender and homeowner, this process takes between six months to a year after which the lender takes procession of the property. In order to maintain possession of the property, the mortgage payments may have to be made current and monthly payments will have to be made on the property going forward.

 

Maintaining Possession Of The Property

There are a few options that can be utilized if maintaining possession of the property is what you’d like to do. Depending on your lenders willingness, these options may or may not be viable. It’s important to work with your lender on a mutual solution or compromise to getting your payment status current and back on track. Here are several routes you can take in order to continue maintained possession of the property.

 

  • Forbearance-

This is the situation where the lender and homeowner come to an understanding which either temporarily suspends payments or allows them to spread the back payments over time.

 

  • Mortgage Modification-

The homeowner is required to apply to the lender for the restructuring of the mortgage to more suitable terms for them. Aspects of the loan that were previously used such as interest, the extension of the length of the mortgage, etc. can be altered to lighten the load on the homeowner leaving them with an affordable mortgage.

 

  • Reinstatement-

This solution by far is the simplest for avoiding foreclosure but again very hard to execute. You are simply required to find out how much money you are required to pay the lender to date and make the said payments. Homeowners don’t require approval from the lender to do this. However to do it, he/she should be able to pay all the fees, penalties and other payments up until the day before the auction.

 

  • Renting Out The Property-

In some cases, homeowners have a  mortgage payment low enough such that the market rent value can pay for their mortgage. They have the option of renting their property out to other people and make their mortgage payments using the rent money they get. This arrangement will allow the homeowner to indefinitely keep the home however many issues are surrounding rental properties considering the rent rarely covers the total cost of ownership as well as maintenance.

 

  • Bankruptcy-

Declaration of bankruptcy is a viable emergency solution to avoid property foreclosure in some states. This as well does not require the approval of the lender, however it may damage the homeowner’s credit and can only be declared at most once in seven years. The foreclosure process nevertheless cannot be completely stopped by declaring bankruptcy but only stalled for a given period giving you time to rearrange your finances.

 

  • Refinancing-

The mortgage can be refinanced by the homeowner to avoid foreclosure if they have excellent credit scores and enough equity in the property. There have been cases in which refinancing has resulted in reduced payments however in the current markets they will most likely increase the mortgage payments of the homeowner.

 

Deciding To Sell The Property

Deciding to sell the home is a viable option for saving your property before it is sold at the auction. You should, however, be able to sell at a price which will allow you to pay back what you owe the lender in full alongside any associated fees and penalties. Even though at this point the house will cease to be yours, you will be protected from the grave damage which being foreclosed on may do to your credit. All in all, it is advisable to let the lender know that you intend to sell the property to use the money to clear the mortgage. The time you have between foreclosure and having your property auctioned off differs from state to state; however you should make sure to ask how much time you have and if you can be given more.

 

 

Selling The Property

There are a few ways you can go about selling your pre-foreclosure property. The first option would be to list it with a realtor. Depending on the condition of the home, listing with a realtor at a fair price will give you the best possibility of getting the most money for your home. Small repairs could also be made to the home to command a higher value. However, a prospective buyer may not have the 30-45 day time period to obtain financing, and the property may have to be sold for cash. In some cases, the homeowner has a debt that is bigger than the value of the property itself. Real estate agents are hired to sell the home however this can only be possible if the house is on the market and the property owner has the qualifying monetary hardships. This will make it possible for the homeowner to salvage some of their credit ratings and qualify for another mortgage in 2 years as opposed for 5 years when foreclosed upon.

The other route to take it to sell the property as-is to a home buying company. These companies pay fast cash for homes as-is. If you are able to find a company who will pay enough cash to cover the mortgage as well as get you some money to walk away with, this may be your best route. We buy pre-foreclosure homes in Jacksonville FL, .and if you are looking for an easy way to sell your pre-foreclosed Jacksonville FL house, simply click here.

Conclusion

When your home goes into pre-foreclosure, there are a many ways to deal with this problem. One way would be to work with the banks to allow you to continue maintained possession of the property. In order to accomplish this, you will have to figure out a way to get your mortgage payments current and back on track. If this is not feasible, another way to deal with a pre-foreclosure property is to simply sell it. Your home most likely has a lot of sentimental value, and selling cannot always be easy. However, in order to save your credit and pay off your lender, selling the property may be your best option. The home can be sold through a realtor, or to a house buying company such as Buying Jax Homes.