Sell your home before it’s auctioned

Having to lose your home is a disheartening experience. While there are a number of different situations that may cause you to lose your home altogether, there are some situations that may bring about more feelings of distress and helplessness than others.

Perhaps the worst way any homeowner can lose his or her home is through a foreclosure. This is because not only would they be losing their home, but they would also need to face the long-term effects on their credit standing, which could last for years after the foreclosure.

Once a homeowner receives a notice of foreclosure, they should begin to look at a number of options that could help them prevent the foreclosure from taking place, saving their home. However, there are situations when none of the numerous options available would be realistic for the homeowner. In these situations the only viable option left is to sell the home before it is foreclosed and sold off at auction.

Benefits of selling your home
Apart from saving you the long-term effects brought about by a foreclosure, selling your home in order to get out of debt does offer a number of different benefits. One such benefit is that you would be able to pay back your loan or mortgage, as well as other financial obligations. Because you are the one who sold your home, and not the creditors, you would be able to get the money after paying the real estate agent for his or her services. This would allow you to make a fresh start after selling your home. Moreover, by selling your home to pay back the money you owe to the creditors and financial institutions, you would not be blacklisted from their shared systems and would be able to take out another loan or mortgage when the need arose.

What to consider when selling your home
Once you have decided that selling your home in order to pay off your outstanding debt is the only option you have, there are some things that you would need to take into careful consideration, including your real estate agent’s reputation and your property’s value.

Although reputable real estate agents do not come cheaply, they are able to ensure that you get the best deal for your home. This is particularly important since you always have to take into consideration that the primary reason you are selling your home is to pay off your outstanding debt in order to prevent a foreclosure. You need to have a real estate agent who would be able to sell your home at a high market value within the time frame imposed on you by your creditor or financial institution.

The price you are willing to sell your home for would also determine how soon you would be able to sell it. Remember that in house hunting, many potential buyers will try to haggle with you for a lower price. Thus, it is important to provide yourself with a buffer so that even if your potential buyer haggles the price down, you still have enough to pay your outstanding debt with your creditor and get a new home for you and your family.

Limitations of selling your home
While selling your home may already be a drastic measure for any homeowner facing an impending foreclosure, it still has its limitation. This limitation is dictated by the amount of your outstanding debt. If you determine that your home is going to be selling for an amount lower than the total outstanding debt you currently have, selling your home would do you no good. One way you can get around this is through the use of a Deed Foreclosure in Lieu. Instead of selling your home, you are offering the deed of your home directly to your creditor or financial institution as a form of payment for your outstanding debt. While you lose ownership, you would still be allowed to live in your home until you are able to find a new residence.

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