Selling Your Home
Selling the home is often one of the last
choices a homeowner has, when other options such as negotiating
a payment plan or home refinancing have failed. Even though
selling may be the least desirable option, you should consider
it early on in the foreclosure process to avoid losing all
your equity to the lender.
Selling the home can take 30-90 days, or
even longer, depending on market conditions. In a foreclosure,
you need a competent
real estate broker who can sell your property as soon
as possible, and for the best price.
It is important to know how much you can
expect from the sale of the home. Expect your net proceeds
to be reduced by
- The loan balance
- Foreclosure fees, interest and late charges
- Title insurance
- Unpaid utilities and assessments
- Estimated costs of necessary repairs
- Real estate commissions
- Real estate transfer taxes and fees.
Among these, only real estate commissions
are usually negotiable, ranging from 4%-7%.
Is it worth to sell when I expect
minimal proceeds?
It is better to sell your home and pay off the
mortgage than to have a foreclosure on your credit report
for a long time. Future lenders will prefer to work with a
borrower who has a “paid” rather than an “unpaid
foreclosure” on their credit report. In the future,
you will eventually need credit for a home, car, or other
needs. A "paid foreclosure" demonstrates that you
are willing to live up to your commitments.
Need
advice?
See one of the professionals
in our Resource Directory.
|
