Am I Allowed to Sell My PA Home to Avoid Foreclosure?
If you have received a notice of foreclosure filings planned by a certain date on your PA home, there is another way out.
How the Foreclosure Process Works
Foreclosure is a legal process that a mortgage lender takes to take full ownership of a home when the homeowner has struggled to make their mortgage payments on time. The lender cannot just take possession of the home without these legal steps. It requires that the lender prove the homeowner has not made payments to the loan for a certain amount of time and has not made arrangements to pay the money. The lender must then go to the court for permission to begin the foreclosure process and then supply notice of the foreclosure plan to the homeowner after filing with the court.
The notice of foreclosure tells a homeowner the lender has filed or has plans to file and proceed with taking full possession of the home. In this notice, the bank will provide dates of a foreclosure timeline plan. This leaves a homeowner with time (but not much) to pay what they owe and get back in good standing on the loan, sell the home, or face the foreclosure process.
The Impact It Makes on Homeowners
Foreclosure is something that shows up on your credit report. Different items reported negatively on your report can impact you in different ways. Some report items can have a bigger impact than others. Foreclosure is one of those big items. Going through the foreclosure process will impact a person’s ability to take out a loan on anything else not just a home. It can also impact a rental application. This impact can last for several years.
Selling A PA Home to Avoid Foreclosure
There is somewhat positive news if you have been given a notice of foreclosure. A homeowner has options to avoid it. You do not need to just let foreclosure happen to you and ruin your credit for many years to come. There is, of course, the option to pay the money owed and resume regular mortgage payments. But you can also sell your home to pay the loan in full and avoid foreclosure.
You have the option as the current homeowner to sell your home through traditional means, but you are in a time crunch racing against the dates set in the foreclosure timeline. Another option to guarantee you sell your home in time is to talk with a cash homebuyer.
A cash buyer will come and take a look at your home, they will discuss the financial situation regarding your mortgage, and they will talk over the next options of selling your home to them. Depending upon the market value of the home and how much you owe on your mortgage, you might have to seek permission to short-sale the home. This is the process of gaining permission from the lender to sell your home for less money than you own on your mortgage loan. This is not always a needed step but in some cases, it could be.
Regardless of short selling or selling to pay the loan in full, both will allow a homeowner to avoid foreclosure and more easily move on to recovering from financial hardship. Working with a cash buyer to sell your home instead of listing it traditionally will help guarantee the home is sold in time to avoid foreclosure.
A Cash Buyer May Be Able to Help Communicate
If you are not sure how to approach your lender about the possible sale of your home, a cash buyer may be able to help. Talk with the cash buyer and let them know about the foreclosure process. In some cases, they may be willing to communicate with the bank about their interest in purchasing the home to avoid foreclosure from happening.
Receiving a notice of foreclosure or an intent to file for foreclosure can be a scary and stressful situation. But there is an alternative to taking a large negative hit on your credit report that will impact your ability to make future large purchases or rent your next home.
If you are interested in selling your PA home for cash to avoid foreclosure, contact us any time. We are here to help you navigate a tough financial situation with as little impact on your future as possible.