Pending foreclosures can feel heart-wrenching, especially if you missed payments because of a tragedy. Moreover, foreclosure can wreak havoc on your credit score and damage future purchasing prospects. Can you sell a house in foreclosure to mitigate that outcome?
At IPS Cash, we buy houses in various physical and legal conditions. You still have a chance even if your mortgage lender has started the foreclosure process. Learn about your options below, or visit our “Get Your Cash Offer” page to sell your house in New Hampshire.
Foreclosure Basics
Foreclosure occurs when a mortgage lender takes possession of property bought using the loan. Lenders can only start foreclosure after the borrower defaults on, or fails to comply with, the promissory note or mortgage terms. In most cases, this happens because the borrower missed too many mortgage payments.
However, they can also default on the agreement for other reasons:
- Failing to pay property taxes
- Failing to pay HOA dues
- Allowing the property to deteriorate
- Damaging the property in a way that lowers its value
- Transferring the property’s deed to a new owner without the lender’s approval
The first two don’t happen as often because most lenders create an escrow account. Escrow accounts collect extra money with each mortgage payment to pay property taxes or HOA dues. The lender pays the taxes and dues on the borrower’s behalf.
How Can You Sell a House in Foreclosure?
In most cases, lenders must wait about 120 days of missed payments before beginning foreclosure proceedings. This waiting period, established by federal mortgage servicing rules, applies in New Hampshire and Massachusetts.
You can sell a property during that pre-foreclosure timeline while you aren’t in complete loan default status.
Often, the hardest thing to do is acknowledge the situation. However, the sooner you establish whether you can make up missed payments, the sooner you can see whether a sale will work best. This will also give you more time to prepare your home, put it on the market, and fulfill any disclosure requirements.
For official foreclosure process details, homeowners can review resources from the New Hampshire Judicial Branch or the Massachusetts Trial Court. Consulting with a housing counselor or attorney is always recommended.
Short Sales and Why You Don’t Want Them
Thirty days after the Notice to Accelerate, you may have to short-sell the property.
When you sell your house before foreclosure begins, you must pay the remaining loan balance, late fees, and other costs. The foreclosure process further lowers your credit score and reduces the time you have left to sell.
A short sale means you sell the house for less than you owe on the mortgage. Depending on the circumstances, the lender may forgive the remaining balance, or you may have to pay it.
Avoid Credit Damage With IPS Cash
Avoiding foreclosure has never been easier. IPS Cash can step in quickly with a cash offer on your house, whether you’re in pre-foreclosure or days away from it. Our team can get from the offer to closing in just seven days.
Can you sell a house in foreclosure? Yes, and with a fair cash offer from Joe Theriault and his team at IPS Cash, you may be able to avoid the lasting damage of a completed foreclosure. Call us at 1-888-893-7188, or visit the Get Your Cash Offer page to start today.
