Sell Your Home Before it is Auctioned: Taking a Step Ahead From Foreclosures

Sell Your Home Before it is Auctioned: Taking a Step Ahead From Foreclosures

Having to lose your home is a disheartening experience. While there are a number of different situations that may cause you to lose your home altogether, there are some situations that may bring about more feelings of distress and helplessness than others. Perhaps the worst way any homeowner can lose his or her home is through a foreclosure. This is because not only would they be losing their home. They would need to face the long-term effects of the foreclosure to their credit standing that could last for years after the foreclosure incident. It is for this reason that, once a homeowner receives a notice of foreclosure, they begin to look for a number of options which could help them prevent the foreclosure from taking place and save their home. However, there are situations when despite the numerous options available, none would be able to be a realistic option for the homeowner. In these situations, the only viable option left is to sell his or her home altogether before this is foreclosed and sold off to auction. Benefits of Selling Your Home Apart from saving you the long-term effects brought about by a foreclosure, selling your home in order to get out of debt does offer a number of different benefits. One such benefit is that you would be able to pay back your loan or mortgage as well as other financial obligations. Because you are the one who sold your home, and not the creditors, you would be able to get the money after paying the real estate agent for his or her services. This would allow you to make a fresh start after selling your home. Moreover, because selling your home to pay back the money you owe to the creditors and financial institutions, you would not be blacklisted from their shared systems and as such, would be able to take out another loan or mortgage when the need arise. What to Consider when Selling Your Home Once you have decided that selling your home in order to pay off your outstanding debt to avoid a foreclosure is the only option that you have, there are some things that you would need to first take into careful consideration. Your Real Estate Agent's Reputation. Although reputable real estate agents do not come in cheap, they would be able to ensure that you get the best deal for your home. This is particularly important since you would always have to take into consideration that the primary reason you are selling your home is to pay off your outstanding debt in order to prevent a foreclosure. As such, you need to have a real estate agent who would be able to sell your home at a high market value within the time frame imposed to you by your creditor or financial institution. Determine Your Property's Value. The price you are willing to sell your home would also determine on just how soon you would be able to sell it. Remember that in house hunting, many potential buyers would try to haggle with you for a lower price. As such, it is important to provide yourself with a buffer so that even if your potential buyer haggle the price down, you would still have enough to pay your outstanding debt with your creditor and get a new home for you and your family. Limitations of Selling Your Home While selling your home may already be a drastic measure for any homeowner facing an impending foreclosure to do, it still has its limitation. This limitation is dictated by the amount of your outstanding debt. If you determine that your home is going to be selling for an amount lower than the total outstanding debt you currently have, selling your home would do you no good. One way you can go around this is through the use of a Deed Foreclosure in Lieu. Instead of selling your home, you are offering the deed of your home directly to your creditor or financial institution as a form of payment for your outstanding debt. While you still lose the ownership, you would still be allowed to live in your home until you are able to find a new home.