Facing foreclosure can be incredibly difficult, but it’s more common than you might think. Generally speaking, a lending institution will send a foreclosure notice after a homeowner misses three or four payments. Upon receiving this notice, the homeowner will typically have a period of time to make good on their payments before their home is put up for auction. During this time, they can explore different options — including selling their homes and pursuing legal action.
Though it may be tempting to explore legal options, these aren’t always the best ways to deal with the issue at hand. In order to keep your home, when seeking how to avoid foreclosure, you may discover that it’s more difficult than it may initially appear. Not only would you need to pay for the aid of an attorney during a time of financial stress, but you would also need the monetary resources to remain in your home. If you’re already having difficulties in paying off your house, these issues will not disappear simply because you’re keeping your house. Therefore, it’s often a better idea to sell a house for cash rather than attempt to keep your home.
What Should I Do If Need to Sell a House for Cash?
If you’ve decided to attempt to sell a house for cash as opposed to having it foreclosed upon, you first need to contact your lender. It’s ultimately up to your lender to decide whether or not to give you time to sell your home. If they approve your request, you will typically be given a limited period of time during which you can sell your house.
However, your lender may not immediately approve your request. At that time, it may be worth it for you to get in touch with a lawyer. Both you and your lender will benefit from you selling your home. As long as you make your request in a timely manner, it’s not unreasonable to attempt to sell your home before it is auctioned off by your lender.
After the request is approved, you need to consider how best to sell your home. If you’re planning on selling your house for cash, you will probably be avoiding the traditional market.
How Can I Find a Cash Buyer?
In order to sell a house for cash, you first need to find a proper cash buyer. When selling your home on the traditional market, you’ll often work with a real estate agent. But if you’re attempting to sell your house for cash, you’ll need to consider other options, especially if you’re trying to avoid foreclosure. Avoiding foreclosure means attempting to make as much money from the sale of your home as quickly as possible.
This is one problem that can arise when you work with a real estate agent. A realtor will be paid a commission fee, which represents a percentage of your home’s sale price. The average Wisconsin seller will give their real estate agents a 6% commission, but this percentage can vary. Therefore, it’s a good idea for you to sell your home on your own, choosing to pursue what is called the “for sale by owner” option.
But as you attempt to sell your by yourself, you also won’t want to entertain individual cash buyers. For one thing, these buyers are few and far between. For another, they’re often too good to be true. Unfortunately, individuals purporting to give cash offers on homes often fall through at the last minute. It’s especially devastating for you to lose these types of offers while attempting to avoid foreclosure.
As such, it’s a better idea for you to work with a company that offers cash for homes. Companies like these work in a systematic manner and have cash ready to offer. Once your home is approved and an offer is extended, you can simply set a closing date and prepare to sell.
How Should I Prepare to Sell My Home?
After you’ve agreed to sell your home for cash, you typically won’t need to make any repairs or renovations. Cash buyers often buy homes as-is. For that matter, the sales process will likely move faster than it would if you were selling your home on the traditional market.
Cash buyers do not need to be approved for home loans, so you can move forward with your sale fairly quickly. By using the profit from your home to pay off your debts, you can avoid foreclosure and the resulting hit that your credit would otherwise take.