Job loss and major life events can sometimes cause people to fall behind on their mortgage payments. If you find yourself in that situation, you may be wondering if you will ever be able to catch up on regular payments again. Something that you might want to consider when behind on payments is selling your house.
Many people do not know it is still possible to sell their home if they are behind on mortgage payments. If you are in that situation you can still sell your home, but it is important to understand exactly what this means and how it will affect the money made in the sale.
First, realize that the fees and the penalties that you have to pay are not going to vanish just because you decide to sell the house. You are still responsible for all of the payments that were missed, and you will have to pay for any penalties associated with them. The lenders expect you to provide a full repayment. If you have equity in your home, you may be able to break even or make a small profit on the sale.
One of the options that you may want to consider when you are selling your house that’s behind on payments is a short sale. However, in order to qualify for a short sale, you need to have approval from the lender, and they do not always give you this option. Lenders may not be willing to let you do a short sale if you are not far behind on their payments. They prefer to get you back on track with your payments.
When you go through a short sale, it doesn’t necessarily mean that the house will sell quickly. However, it’s sometimes easier to get people interested in the house because the prices are generally a bit lower.
Going through a short sale can have a negative effect on your credit report, but it may not be quite as bad as actually going through the foreclosure process.
Keep in mind that most of the lenders will not begin foreclosure procedures until you are at least 90-120 days behind. This is not always the case though, so make sure you understand the policies of your lender.
If there is a chance that you could catch up on the payments, whether it is through saving some extra money, selling some possessions, or even borrowing from the family, you can stay in your home. However, if you do not see the situation getting better quickly then you might find that selling the house is in your best interest. Of course, if you are going to sell, you need to make sure the house is in good condition so you can get the best possible price.
When many people fall behind on their payments and start to worry about the foreclosure process, they tend to neglect maintenance and upkeep on the house. In some cases, people even damage the property out of frustration. If you want to sell the house though, it helps to be in fairly good shape. Most people do not want to buy a property if it has damage and is in need of repair.
Those who want to sell and who are behind on their payments may not have the money to pay for repairs. There are likely a number of small things that you can do to make the property more appealing though. Painting, cleaning, removing clutter, and improving the curb appeal of the house should help you make the house look better when you are showing it to prospective buyers. Also, if possible, have the home staged properly so that it looks inviting.
If you are behind on payments and need to sell your house, we can help you. We can stop the interest and fees from adding up by buy your house for cash and closing quickly. Give us a call as soon as possible or fill out the form. We will be happy to talk about your unique situation.
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