If you are behind on your mortgage payments, in many cases you will still be able to sell your property.
The earlier you are aware of your options, the more time you will have in order to make arrangements to sell, speak to your lender, or look into other options.
Selling your house in Louisiana ahead of a foreclosure can help you keep your equity and avoid your property being sold; however, there are various factors to consider based upon the amount you owe on your mortgage, the condition of your property, and how far along the process may be.
This guide will give you an overview of what to consider if you wish to sell your property ahead of a foreclosure.
Can You Sell Your Home Once a Foreclosure Has Been Initiated?
Yes, you may still be able to sell your home even after a notice has been sent. However, it is important to understand where you currently are in the process.
There are a number of different legal processes involved in foreclosures in Louisiana, and you may find that you have less time than you expect.
If you have received any notices or documentation regarding a foreclosure, you should get in touch with your mortgage servicer. It may also be best to speak to a Louisiana foreclosure lawyer in order to understand how much time you actually have to sell your property.
What Happens If You Sell Your Property Before Foreclosure?
Once you are able to sell your property, you will typically use the money to pay off your mortgage and other costs incurred at closing. If your property is sold for the right amount, then you may be able to pay off your mortgage.
If you have equity within your home, you may be able to keep some of the money from the sale.
However, if you owe more than your property is worth, you may need to speak to your lender to come to an agreement. This could be via a short sale.
Selling your property before a foreclosure can help to give you more control over your situation. However, you should speak to your lender, closing agent and lawyer to ensure they are aware of the timescale.
Traditional Sales or Cash Sales?
This will depend on how much time you have and the condition of your property.
If you do have enough time to get your property ready for sale, organise viewings and secure a buyer with finance approved, you may want to look into a traditional sale with a real estate agent. This can also give you more opportunity to receive competitive offers.
However, if you are running out of time with your foreclosure, you may find it more challenging. You may have to invest time into getting your property fixed, inspected, negotiating, and waiting for your financing.
A cash sale can help. As you are selling your property to a cash buyer, they may be willing to purchase your property ‘as is’. This means you don’t have to spend time fixing any issues with your property. Based on your buyer, title, and situation, you may also be able to complete your sale quicker.
Rally Home Buyers buys properties in Greater Baton Rouge and surrounding areas of Louisiana. We work with homeowners who are in tricky property situations and can talk through whether an ‘as is’ sale is suitable.
We cannot guarantee any sales will complete before your deadline, however.
My Property Needs Repairs
When you are under financial pressure, it can be even more difficult to get your property in order. If your roof is damaged, there are water issues, or your property requires significant upgrades, you may not have the money or time to get your property ready for a traditional sale.
You may not need to upgrade your property.
By selling your property as is, you can look into selling your property in its current condition. If you wouldn’t have the money to get your property repaired, this can be beneficial.
Consider how much money you would receive from each option. This can include any repairs, closing costs, mortgage payments, and any other debts.
I Owe More Than My Property Is Worth
If your mortgage is higher than the market value of your property, there may be more complications. However, there may still be options for you.
A short sale can be done. This means that your lender will agree to a lower amount being paid off your mortgage. However, you will typically need your lender’s approval, and it can take longer.
Speak to your lender to see how a short sale will impact any outstanding debt.
If you are running out of time with your foreclosure, seek professional advice. A Louisiana lawyer or HUD-approved housing counsellor can help you understand your options.
What Should I Consider?
Once you know that your mortgage payments may not be manageable, it can be a good idea to look into your options. This does not have to be once your lender has initiated formal proceedings.
Maybe you are behind on your payments, your income has changed, or your property is becoming too expensive to maintain. Or perhaps your property is empty, in poor condition, or you have inherited a property with an outstanding mortgage.
If you can get clarity early on as to how much time you have, you can make a more informed decision.
You may be able to get a repayment plan sorted with your lender, look into other options, or sell your property ahead of a foreclosure. Ultimately, it depends on your financial situation and what you want to achieve.
See our guide on How to Avoid Foreclosure: Tips and Options to Keep Your Home or Sell Fast for a broader overview.
FAQs
Can I Sell My Property After I Have Received Foreclosure Papers?
Typically yes; however, you will need to ensure that you can sell your property in time. Speak to a legal professional to understand your deadline.
Will Selling My Property Stop the Foreclosure?
No, simply listing your property or accepting an offer will not stop your foreclosure. Speak to your lender and lawyer to understand what you need to do to pay off or pause your foreclosure.
Can I Sell My Property in Foreclosure for Cash?
You may be able to sell your property to a cash buyer. However, you will need to ensure that your mortgage is paid off and any approvals are in place.
Is It Better To Sell My Property?
It will depend on your situation. Selling can help you keep your equity and give you more control. However, you should carefully consider your options.
Look Into Your Options
A foreclosure can be daunting to deal with. However, you may have options available to you.
If you are looking to sell your property, Rally Home Buyers can talk through an as is cash sale. We work with homeowners in Greater Baton Rouge, Greater New Orleans, and surrounding areas of Louisiana.
Speak to Rally Home Buyers to have a free chat regarding your property and timescale. You can look into your options.
This article is for general information only. We do not provide legal or financial advice. The process and deadlines regarding a foreclosure can vary. Seek advice from a qualified Louisiana lawyer.