Selling Your Home Before Foreclosure

If you’re not in foreclosure proceedings yet, but you know they’re coming you may be considering selling your home. This usually happens if you’ve missed payments and you know you’re not going to be able to get caught up.

Other homeowners in your position will sometimes try to sell their homes quickly. This can get rid of the debt and help you avoid having a foreclosure on your record. It also means the bank won’t simply reclaim your house, so you may get your money back out of it — depending on how much you paid and what the current market looks like. Below are some tips to help you sell when you want to do it quickly.

1. Be realistic

Be realistic about the value. You’re trying to sell quickly. If you’re facing foreclosure and the loss of your home, you’ll probably just be happy to break even. Don’t try to overprice the house and get every cent that you can if it’s going to drag the process out and let the bank swoop in.

2. Make the home look good

Make the home look good. Charming, inviting pictures draw buyers in. People may never come see the home in person if it’s cluttered, dirty and if the pictures are taken in poor lighting. Spend a weekend cleaning up and making minor repairs so that the home looks pristine in the photos. Buyers know what a lived-in home looks like, and that’s not what they dream of purchasing.

3. Offer perks

Offer perks. For example, maybe you know you’re going to make a few thousand dollars on the sale. Offer to use that money to cover the closing costs. Sure, you lose your small profit, but buyers love this because it means they can turn around and spend the money they saved for closing costs on home furnishings, updates, and other things that they think of as more exciting.

If you’re not able to sell before the foreclosure, make sure you understand how the legal process will play out and what rights you have.