Do you have a Fort Worth TX house that’s in foreclosure right now? Many people going through the TX foreclosure process want to get out from under that burdensome house and wonder if they can sell the house in foreclosure. The short answer: yes. The long answer: it’s a little more complicated, but usually you can sell your property prior to foreclosure. Generally, the sooner you start, the better.
Can I Sell My House in Foreclosure in Fort Worth? – How it works
There are a lot of folks in Fort Worth who have faced foreclosure in the past few years. Since the changes in the economy, a lot of banks have been shifting the way that they deal with foreclosures.
Remember, the bank that carries your mortgage doesn’t want to see your home abandoned or auctioned. The bank stands to make the most amount of money by helping you to avoid foreclosure by selling your property. However, dealing with banks during any part of the foreclosure process can be a huge pain. Over many years of working with banks to help stop the foreclosure process, we’ve learned a few tricks that will help you.
Working With Banks During The Foreclosure Process
- Always over-communicate with the bank (but don’t be annoying). Call with updates and show them what you’re doing to get your property sold.
- Don’t miss deadlines. If anything will be late, call with advance notice.
- Remember that bankers are people too. Don’t be overly dramatic, but explaining your situation and demonstrating your willingness to fix the problems to make it right goes a long way.
- Start keeping careful records of every conversation you have with the bank. Nothing counts unless it is in writing. Make sure to keep track of each person you speak with, what they said, and any promises made.
- Explore all your options, including short sale, loan modifications, bankruptcy and a deed in lieu of foreclosure. Depending on the details of your personal situation, you may be able to dramatically slow down the foreclosure process with enough effort. Each bank has its own policies to help borrowers avoid foreclosure.
- Don’t wait. Unfortunately, time is not on your side. The further behind you become on payments, the fewer options are available to you. As soon as possible reach out for professional advice and contact your lender to discuss your options. At any point in the foreclosure process before the final day, you can work out an arrangement with your lender or pay them what you owe, according to HUD. HUD recommends working with a housing counselor as soon as you miss a payment to advise you of all your options. Many people are able to sell their home and walk away with money before foreclosure happens.
Steps For A Pre-Foreclosure Home Sale
You are allowed to sell your home after you have received a foreclosure notice prior to your scheduled auction date. If you have equity built up in your house, it could be a big help in your current situation. Taking action as quickly as possible will increase your chances of being able to sell your home and avoid foreclosure.
Step 1. Find out how much your home is worth. Consult with a local experienced real estate agent before actually pricing your home.
Step 2. Figure out what you owe on your mortgage, plus any late fees and any mortgage company attorney fees for your delinquency. Contact your lender and ask exactly what you’ll owe if you decide to sell. Determine what’s owed in fees, plus outstanding principal and interest, and subtract that from your estimated sales price.
Step 3. Subtract What You Owe Plus House Selling Fees. It costs money to sell a house. Subtract fees for preparing the house for sale, the real estate agent commission, closing fees, seller concessions, and moving costs from the final sales price.
Hopefully you will even have some cash left over. But if your sale proceeds won’t cover your mortgage and other costs, another option is to bring some money to the table to cover them. If that isn’t possible then you may be looking at a short sale.
Step 4. Find and work with a local agent who has lots of experience with successful pre-foreclosure home sales. They will be able to help you price your home so that it will sell quickly ( in one or two weeks) while getting the highest dollar possible for the sale of your home.
Step 5. Both you and your real estate agent will need to be in close contact with your lender and keep them up to date especially as situations and plans change. Many lenders will prefer to work with you so that you can get your house sold, rather than foreclose and possibly lose money selling your house.
A Short Sale May Be the Best Option if you are behind on payments due to extenuating circumstances like losing a job and you are upside down on your mortgage. In a Short Sale the bank would give you permission to sell your house for less than you owe. You can request forgiveness for any loan amount you still owe that is above the selling price. Forgiveness isn’t guaranteed. In some states there still might be a deficiency judgment. But sometimes lenders are ok with writing off the difference in a short sale.
Any forgiven debt in a short sale will be considered taxable income and short sales can actually take longer and cost more if there is an attorney involved. Getting approved for a short sale is a process. You have to prove that you can no longer afford the house and that you don’t have any other assets that you could liquidate to pay the mortgage.
At Texas Best Homebuyers we specialize in helping homeowners in situations including foreclosure around Fort Worth and surrounding areas get out of difficult situations and avoid foreclosure. In certain circumstances, we can negotiate directly with the bank to reduce the amount you owe and (sometimes) even help you walk away from your property with cash.
If you need to sell a property near Fort Worth, we may be able to help you. We buy properties like yours from people who need to sell fast. And we also have the ability to help you price and list your house to sell quickly on the MLS (Multiple Listing Service) It’s completely your call. We would be happy to discuss your options with you.