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A foreclosure is a legal proceeding whereby a lender attempts to recover the amount owed by the homeowner on a defaulted loan. They do this by seizing or taking possession of a mortgaged property, usually followed by selling that property. 

Foreclosures typically occur when the homeowner is unable to keep up with and repay their monthly mortgage payments.

If you have missed one or several months of mortgage payments and are incurring your lender’s late fees, you might want to consider selling your house to get over the tide. 

Regardless of your situation, you may feel a sense of panic, despair, and depression. However, it is vital that you stay focused and carefully think through the steps, intervene quickly, and take prompt action. If you ignore the problem and delay, more issues and expenses might surface as a result.

Generally, mortgage companies begin the foreclosure process when you have fallen behind on your payments and have repeatedly missed three to six months of mortgage payments. 

You will also receive a notice of default from the lender informing you of details about the foreclosure and its consequences. The foreclosure details vary depending on the state, the type of home you live in, and other various factors. 

The letter should also include additional information like the total amount owed and additional charges the lender can charge, such as attorney fees, etc.

When Can I Sell My House?

The ideal time to sell your house would be during the foreclosure period, where you still have the benefit of time on your side to start preparing for the sale of the house. 

As mentioned previously, you should not let stigma and fear get in the way and interfere or influence your decision to sell your home. Remember that you aren’t alone in this situation, and many before you, have been through this phase of uncertainty.

Once you have received the formal notice for foreclosure, your mortgage company can initiate the foreclosure procedure. However, you would still have the option of selling your home before the scheduled auction date. 

Unless you have a clear-cut path to recover from your situation, you should strongly consider selling your house to give yourself a fresh start.  Your mortgage problem isn’t something that will miraculously disappear overnight and will only worsen with time. 

Not to mention, it is highly likely that you have some equity built in your house over the years. Selling a home with equity means you could walk away with thousands of dollars in your pocket that can be used to settle into a more affordable location. 

What Steps Should I Take?

First and foremost, you should consult with a professional real estate company to estimate the value of your house and avoid being shortchanged and misguided. They can also help you determine how much cash you would be able to keep in your pocket after the sale. 

An experienced real estate company like Modern Feather Properties can assist you in closing the sale before foreclosure. They’ll also ensure you get the best price for your home in the shortest amount of time.