Sell before Foreclosure Auction
We have been selling and buying houses since 2004 and have plenty of experience in the business. Here are some of the reasons why you want to avoid foreclosure:
You will not be able to obtain a conventional loan for the next 7 years. What does that really mean for you? It means that if you want to purchase another property you have a few options – contract for deed, cash, or FHA financing 4 years after FC sale if your credit score is above 640. If you have never done one you need to know that contract for deed comes with a hefty % and if you miss a single payment the owner can revoke the contract and take possession of the property. Another option for you will be to rent for the next 7 years. Is it really worth it?
As soon as the foreclosure is reported to all creditors your credit score most likely will drop by 200-250 points. Also, most of the creditors such as credit cards, insurance, etc. will most likely close your credit lines immediately. How will you pay your bills?
If you owe more on your house than what the banks sells it for on Sheriff’s Sale, you will receive a 1099 from your bank asking you to pay taxes on the deficiency.
If you can’t make mortgage payments, many people try loan modification, which is a very time-consuming process, and based on our experience less than 5% of loan modifications get approved. Some people also try to sell the home in a traditional way. Using a realtor and waiting 1-4 months for the home to sell passing inspection, waiting for the buyer to obtain financing and for the closing to actually happen. Realtors will charge you anywhere from 5-7% commission fee and you will have to really get your home in order.
Most of the buyers would ask you to fix things after the inspection or reduce the sale price of the property.
If you are not in hurry and OK dealing with multiple showings, buyers, inspections, waiting for buyer’s financing to go through, then listing the property on the open market will give you the highest possible selling price. We recommend contacting Ryan Fischer, Ryan has sold many properties for us and he is one of the best Realtors in Minneapolis.
If you need to sell fast because you are facing foreclosure, divorce, bankruptcy, health issues, inherited the property, don’t want to deal with multiple showings, City’s orders, don’t want to do any repairs, and just want to come at closing and get your check, then contact us now. We we’ll be happy to listen to your story, understand your case, and propose the best possible solution for you.
Call us, don’t wait. We have the answers and the means to help.