Hey there, this is Mike from Mike Buys Houses.
Recently, we were talking with a homeowner who was asking if they can you sell your house during foreclosure. The timeline was getting a little tight for them and they were wondering if it could get done. So, we looked into some of the options if you’re looking to sell your property while in the foreclosure process.
Option 1: For Sale By Owner
The first option is going to be to just sell the property for sale by the owner. This will help you save on realtor commissions, which is great as those can get as high as 5-7% of the sales price. However, you may be limited with interested buyers as you will not have access to the MLS.
So while you may need to do some additional marketing work, if you have enough time and you can price the property properly, then you may be able to sell the property before foreclosure. Therefore, where you’re at in the process will be critical for this option.
Option 2: Sell with a Realtor
The second option available to you to sell your property before foreclosure is to sell with a realtor. This is the most traditional method of sale and will make most people feel pretty comfortable with the process. Most people we speak with also feel better during the foreclosure process when they have a professional they can rely on for some help and guidance.
As mentioned above, realtors also have access to the MLS, so they can generate the most interested buyers for your property. However, it comes with a price, which will end up being about 5-7%.
Additionally, you’re going to need at least 10% equity in your house, spread between what it sells for and how much you owe on the property. If you have at least that much equity in the house, then you can definitely consider this option, as it will likely get you the most overall money.
Even if you have less than 10% equity, you still might be able to consider this option, but you will probably need to bring some money to the table. So, selling with a realtor can be a great way to sell your property before a foreclosure.
Option 3: Sell for Cash
Your third option to selling your house before foreclosure is to sell it for cash. This is a great option if you are in an ‘As-Is’ sale situation. What I mean by that is you either are up against the clock and need to sell immediately and/or the property needs significant work.
Option 4: Sell on Terms
The fourth option for you to sell your property before foreclosure is to sell it on terms.
This is typically how we like to help homeowners because it allows us to have the most flexibility and allows us to actually sculpt every deal around what homeowners actually need. There are so many options that, if this is something that sounds interesting to you, it is easier for me to hear your situation and tell you how we can structure your deal.
Give me a call at 267-984-4765 or fill out the form below and we will reach out to you.
Looking forward to helping you out!