This seems like this is a bad idea for a cash buyer to tell you to use an agent to avoid foreclosure… but that’s really what I’m about to do. Disclosure ahead though, I am also an agent. So I can speak on this from an area of expertise. Don’t just take my word for it though. Ask your local, trusted agent. I’m sure they’ll guide you and help you the right way.
So now back to the foreclosure issue. You got a notice saying that your lender is starting the foreclosure process. You shouldn’t be completely shocked. You haven’t made payments in a few months. It doesn’t make it any less crappy though. No one wants to face that feeling. So it’s very important to…
STOP AND TAKE A BREATH.
Don’t be ashamed. It has happened to lots of people. Even has happened in my family. And I’m here to help you out.
The first thing you need to do is decide what caused this to happen. Was it something innocent and something you wanted to hide from, like an illness or injury that caused you to stay in the hospital for a longer period of time? Was it a divorce and now you don’t have dual incomes to make the payments? Or was it something worse, like a death that was hard to deal with, both personally and financially? Or maybe it was something just plain lousy like a change in jobs and therefore a change in income?
Any way you look at it you have to figure out if you really can keep the house. Innocent and able to be fixed would allow you to keep the house. That is easier to go about fixing. We’ll address that another time. So watch for when that comes out. Now with something more difficult to deal with comes having to sell your house. That’s what we’re going to talk about right now.
One really big thing this really hinges on is the amount of equity you have in your home. So guess what your next step is! That’s right. Get the records for your loan and start talking to agents. Hopefully, you have one in your life that you trust. If it was me, and I wasn’t an agent, that would be the first person I called, well besides my wife.
That’s one of the big reasons why I recommend listing your house with an agent. If you don’t know what your equity is, they can help you figure that out and can give you some insight into what to expect throughout this process.
So now back to that equity. You haven’t really paid attention to the market over the last few years and even more recently, most homes have had a huge increase in equity. According to CoreLogic, for the third quarter, we have seen an increase on average of 15.8% year over year. This is always very regional, and a big reason why I recommend you check in with an agent ASAP.
So now you know your equity is up, but why should you still sell with an agent? Well, that’s because there are still so few listings on the market. Days on market are going up. Prices are dropping. But we’re still seeing lots of buyer activity. There is still a huge demand for buyers even with affordability continuing to decrease.
So what does that tell me? That if you stage your house and price it correctly, you will still sell the property. It may take a little longer. So you start working on trying to sell it as soon as possible.
So the big advantage of it is that you get to keep the money you made by investing in real estate for yourself. And you still avoid foreclosure. By attacking it early in the process, you also avoid any bigger issues that come with that, like financial or wealth changes, finding a new place to live, or evening ruining your credit. You get to control the timeline and how much it sells for.
Don’t worry, it’s really not something to be ashamed of. As I said above, even my family has gone through it. But the key is to not hide from it and address it quickly.
Watch our YouTube video to see what other options you have to get rid of your foreclosure.
If you think selling with an agent isn’t for you still, and you want the convenience of a quick, cash sale, and want to see what you could get for a cash offer. Just fill out the form below.