How Long Does It Take To Sell a Foreclosed Home?
Foreclosure is a long and emotional process for a homeowner, but it’s not hopeless. Selling a foreclosed home is an option many homeowners who have defaulted on their loan don’t know much about. When looking for a solution to defaulting on their mortgage payments, many homeowners wonder “can I sell my house fast in Seattle even if it’s in foreclosure?” The answer is yes.
Home will be foreclosed upon when a mortgage lender exercises its right to sell a property that the owner hasn’t kept up payments upon. The lender gives the homeowner some time to make payments or other arrangements before selling the property. Up until the home is sold at auction, you can rescue your home by selling it and paying the lender everything you owe, including back payments.
How Does Foreclosure Work?
Foreclosure is generally a slow process. If you make one payment day or a week late, you’re probably not facing evictions. However, you may face late fees in 10 to 15 days. The foreclosure process itself varies from lender to lender and laws are different in each state. The entire process could take several months at a minimum.
- Notices start: As soon as you miss one payment, you will start to receive communications, including a notice of intent to move forward with the foreclosure process. In general, lenders initiate foreclosure proceedings three to six months after you miss your first payment. After three missed payments, you may be given a “Notice to Accelerate” requesting payment within 30 days. If by the fourth month you still haven’t made the payment, lenders will consider your loan to be in default and refer you to the lender’s attorney.
- A foreclosure ensues: You will be given a written notice to make payment followed by a “Notice of Default.” You can fight the foreclosure in court to stop the process. The lender might say that you can reinstate the loan after this notice up until the foreclosure date and stay in the home if you make all of your missed payments and cover fees and penalties.
Selling Your Foreclosed Home
If you’re unable to prevent foreclosure, the property will be made available to the highest bidder at an auction. If nobody else buys the home, ownership goes to the lender. At that point, if you’re still in the house, you face the possibility of eviction. A foreclosure also is expensive because the lender may charge late fees and you need to pay legal fees for fighting it.
The best option when dealing with foreclosed properties is selling them. You avoid the expenses of the whole foreclosing process and hurting your credit scores. If you’re simply ready to move on but want to at least try to minimize the damage, you can talk to your lender about your wanting to sell the house to pay off the mortgage.
You have a few options when selling a foreclosed property: a short sale, selling it the traditional way with a real estate agent or selling to a home buying company. But, how long do each of these options take to sell your house?
- Short Sale: The way most sales agents would predict a timeline for your short sale is by determining the type of loan you have and your lender’s identity. On average, it takes 30 days to find a buyer and receive an offer, 60 days for approval, and 30 days to close escrow, for a total of 4 months.
- Selling With a Real Estate Agent: Selling a foreclosed home is no different than selling a regular home. According to statistics from the National Association of Realtors (NAR), the typical U.S. home was on the market for an average of 24 days. The average time to close on a purchase loan is 46 days. That’s from 2 to 3 months from listing to closing.
- Selling To a Home Buying Company: Home cash buyers can make an offer on your property within 24 hours. Since they do not need any type of lender and pay cash for your house, you can close the deal in less than a week.
Selling Your Home To a Home Buyer Is Your Best Option
When dealing with a foreclosure, the best thing to do is to sell your property: it doesn’t ruin your credit, makes you able to pay off your mortgage, and, if you can sell for a higher price than your loan, even keep some cash. However, when you’re in this situation, you don’t have the time nor the energy to deal with a traditional house sale.
This is why selling your home to Seattle home buyers is your best option. If you’re wondering “how can I sell my house fast in Seattle?” I Will Buy House is your answer. We buy houses in Seattle in any condition and fast. Forget about the hassle and uncertainty of selling your house the traditional way, especially if you’re dealing with a foreclosure. We’ll buy your house for a fair cash price in as little as 7 days.
At I Will Buy House, we buy houses in Seattle and make the deal a win-win for both parties. We’re dedicated to helping homeowners in difficult times. Since 2015, we are the locals’ trusted Seattle home buyers!