Can I Sell My House if It’s in Foreclosure?

YES! But the time to act and stop a foreclosure is NOW before your property goes to the foreclosure auction.

Things like unexpected deaths, divorces, job losses, and unexpectedly high medical bills are all part of life. It is not uncommon for these circumstances to result in missed mortgage payments… When you start getting past-due warnings from your mortgage provider, it’s only natural to feel helpless and panicked at the same time. This is a completely normal reaction. When the notices begin to pile up, you can choose to ignore the situation in the hopes that it will go away on its own. Or maybe you start to think that the only possible consequence is that you will end up having to give up your house. But then a sliver of sunlight carries a question to your mind — “How do I sell my home if it is in foreclosure?”

Understanding the Foreclosure Process in Kentucky

In the eyes of the law, foreclosure is the process by which a mortgage lender attempts to reclaim the real estate property (a home) that is serving as collateral for a loan (a mortgage). This typically happens when a borrower (or a homeowner) fails to keep up with their monthly payment obligations. If you have fallen behind on several mortgage payments, you are certainly curious about when your lender will start the process of foreclosing on your home. The correct response is, “it depends.”

The laws, procedures, and timetables governing foreclosures are different in each state and among mortgage lenders. The first missed mortgage payment often triggers the beginning of the foreclosure process, which can take anywhere from three to six months, as stated by HUD. After you have missed payments for around three months, you will most likely receive a notice titled “Demand” or “Notice to Accelerate.”

This letter notifies you of the total amount that you are responsible for paying and normally gives you 30 days to bring your account current. Most of the time, lenders talk to borrowers through registered mail so that they can keep a record of their conversations. If you do nothing to bring your account current with the mortgage company after receiving the demand letter, the rules provided by HUD indicate that the sale of your property could be arranged anywhere from two to three months after the letter was sent.

States foreclose via judicial sale or power of sale.

Under Judicial Foreclosure:

• Your mortgage servicer must take legal action.
• The court will send you a letter requesting a payment.
• In order to stop the foreclosure process, you have 30 days to provide payment to the court (sometimes that can be extended).
• After this time limit has passed without payment, a judgment will be entered and the lender may request the sale of the collateral.
• The local sheriff will present you with an eviction notice once the property has been sold, at which point you will be required to evacuate the premises immediately.

Under Power of Sale (Non-Judicial) Foreclosure:

• It is not necessary for the courts to be involved, but there may be some level of judicial review, when the lender serves you with a notice requesting payment.
• The control of your property is given to a trustee after the predetermined waiting period has passed and a deed of trust has been created.
• A public auction may be held after which the trustee might sell your property to the lender (notice must be given)

Am I able to sell my home after I have received a foreclosure notice?

You still have time to sell your house on your own before the scheduled auction date, even if the foreclosure process has already started. Selling your property might be the best course of action if long-term financial difficulties are impending. Not only will it free you from your mortgage, but you might also be able to profit from the sale and keep your credit score intact.

Unfortunately, many residents of our neighborhood have had to deal with foreclosure in recent years. Numerous banks have changed how they handle foreclosures as a result of the economic changes. Keep in mind that the bank holding your mortgage doesn’t want to see your house foreclosed upon or sold at auction. By assisting you in avoiding foreclosure by selling your property, the bank stands to gain the greatest money. However, interacting with banks while the foreclosure process is underway can be extremely frustrating. We’ve worked with banks for many years to help halt the foreclosure process, and we’ve picked up a few tips that can be useful to you.

Working With Banks During The Foreclosure Process

1. Always over-communicate with the bank. Maintain communication with them by providing updates and demonstrating the steps you are taking to sell your property.
2. Don’t miss deadlines. Give as much notice as possible by calling in the event that something will run late.
3. Remember that bankers are people too. It’s important to avoid becoming unnecessarily emotional, but if you can explain your situation and show that you’re prepared to make things right by fixing the issues, that will go a long way.
4. Get in the habit of recording all of your interactions with the bank. When it comes to legal matters, only a written document will do. Keep notes on who you’ve talked to, what was discussed, and what promises were made.
5. Explore all your options, including a short sale, debt modifications, and bankruptcy. With enough effort and depending on the specifics of your own case, you may be able to significantly slow down the foreclosure process. Each bank has its own procedures in place to assist borrowers in avoiding foreclosure.
6. Don’t put it off. Regrettably, time is not on your side. The longer you get behind on payments, the fewer options you have.

Bottom line – If you’re facing foreclosure, don’t wait. Act now!

Don’t put off dealing with foreclosure until the last possible moment. The good news is that you have options, some of which can help you keep your credit score and decrease the time it takes to buy another property. Face the situation head-on and work with a firm like Revivalist Homes to maximize your chances of selling the house while it is still legally yours.

If you’re looking to sell your Kentucky house in foreclosure fast, call us now. We specialize in helping Kentucky homeowners in situations including foreclosure. In certain circumstances, we can negotiate directly with the bank to reduce the amount you owe and (sometimes) even help you walk away from your property with cash.

We buy properties in any condition from people who need to sell fast.

The Pros & Cons Of Selling Your House To A Local
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Download our FREE Guide here and contact us anytime with any questions, for a no-hassle Situation Evaluation, or if you would like to learn more about how we help homeowners sell their unwanted properties for cash.

Get your FREE Guide and then give us a call at (270) 799-2409. We would love to discuss what your home is worth and what we can offer to buy it for with our Cash Offer Program.