In any city, foreclosure is a scary thing, and you want to avoid it at all costs- but if you’re already facing it, you might think you’ve got no other options. Modesto has a great housing market, and selling under foreclosure is a perfectly okay thing to do, especially if you’re selling to a cash-offer service like Rapido Home Buyers. Let’s hop into what to do if you’re looking to sell while your home is being foreclosed on.
What is Foreclosure?
Foreclosure is a state on a loan- specifically, the state the loan is in when you’ve missed several months’ worth of house payments. This can happen to your home, your business, an empty field behind your house- anywhere that someone currently has bought with a loan. Oftentimes, foreclosure begins after the fourth missed payment, and foreclosing on a home can take from six to twelve months.
Selling A Home After Foreclosure
Right up until the bank takes possession of the home, you still have the ability to sell it. If you manage to make enough money, you may even be able to pay off the overdue loans you’ve got on the house. While you won’t own the house, you also won’t have the massive damage to your credit score that foreclosure can bring. Selling a home while you’re being foreclosed upon runs a lot like any other home sale- you can choose a real estate agent, a cash offer, or a short sale. Short sales are great when you’re being foreclosed upon, because they enable you to sell the house for less than it’s worth, and let the bank have all the money you net from the sale. Then the bank is free to sell the home again, without the unpaid loans hanging around.