Can I Sell My Distressed House to Avoid Foreclosure?
Once your house goes into foreclosure, you may have a period of 90 to 120 days to get caught up on your payments or work out a payment plan with the lender. If you can’t catch up on your payments, your house may go to auction, where the bank sells it at a cheap price. Once the foreclosure goes through and is on its way to auction, you have what is known as a distressed house.
The good news is that you can still sell your house distressed house fast while it’s in foreclosure. The question is whether you can sell it fast enough to pay off the mortgage before the house goes to auction. It may not be possible with a traditional sale. However, you can sell your house fast as-is for cash when you work with a company that buys houses.
What Is a Distressed House?
A distressed house is a property that is on the verge of foreclosure. Once the foreclosure goes through, the bank will try to recoup the mortgage balance by selling the house at auction. If the bank cannot sell the house, it assumes ownership of the house. The lender may hire a realtor to sell the house or a property management company to maintain the house.
Sadly, foreclosure does not always cancel your mortgage debt. When the bank sells a house at auction, the price can be lower than your mortgage balance. The bank may come after you for the remaining balance. If so, you will have to pay the bank back the remaining balance. For this reason, your best option is to try to sell the house before the house goes to auction.
Can I Still Get My House Back After It Sells At Auction?
You may still be able to get your house back even after it sells at auction. Many states allow a redemption period, which is the period after the bank sells your house at auction. Each state has separate laws regarding the conditions and length of the redemption period. So, check your state’s foreclosure redemption laws.
How can a redemption period help you with your foreclosure? A redemption period can last anywhere from a week to a year, depending on the state laws. The period gives you the time you need to reclaim your property and sell it so that you can get the cash you need to pay the lender and close the mortgage. The lender may even be willing to reverse the foreclosure and have it pulled from your credit report.
How Do I Sell My Distressed House Fast?
If you are trying to sell your distressed house fast, you have limited time before the bank repossesses your house. Therefore, you need a solution that can help you close a deal quickly and put cash in your hands. The best solution for selling your distressed house is to sell your house fast to a company that buys houses in your area.
The process is simple.
- Contact a company that buys houses in your area.
- Schedule a walkthrough of the property.
- Get a cash offer from the buyer.
- Accept the offer.
- Schedule a close date.
The transaction is known as a cash sale, and it has several advantages over a traditional home sale.
- Get a fast cash offer within 24 to 48 hours of showing the house.
- Work with a buyer that is experienced, trustworthy, and pre-qualified.
- Pay zero closing costs or realtor commissions.
- Make zero repairs or upgrades to the property.
- A cash sale can stop or reverse foreclosure and help you save your credit.
The average timeline for a traditional sale is 60 to 90 days. It does not include the time you have to spend repairing the house or going through the closing process. Do you have the kind of time during foreclosure? A cash sale allows you to expedite your sale, preventing your house from going to auction.
Contact Local Guy Buys Houses to Sell Your Distressed House
At Local Guy Buys Houses, we are in the business of helping homeowners find fast solutions to avoiding foreclosure or bankruptcy. We can look at your house, make an offer, and close the sale in as little as seven to 21 days. Call 855-205-5999 to get a fast cash offer.