Can You Sell Your Home in Foreclosure in Florida? Know Your Options!
If you’re a homeowner struggling to keep up with mortgage payments, selling your home and using the proceeds to buy something smaller and less expensive is often the best course of action. Even if your lender has already initiated foreclosure proceedings, it’s not too late to sell. Selling your home during foreclosure may be more complex than it seems, but it’s not impossible. Here’s a guide to understanding the foreclosure timeline in Florida so you can see how you might still be able to sell your home.
Foreclosure makes many homeowners feel like giving up. However, when you take proactive steps like attempting to sell your home, you may be able to minimize the impact on your credit and life.
Understanding the Foreclosure Timeline in Florida
If You Act Quickly, You May Still Have Time to Sell
There are more steps between falling behind on your mortgage payments and losing your home in a foreclosure sale than many people realize. Here’s a brief overview of the foreclosure process:
- The lender notifies you that you have defaulted on the mortgage.
- If you don’t catch up on payments, the lender files a lawsuit against you.
- You receive a notice of the lawsuit and a court summons.
- You respond to the lawsuit within 20 days.
- At the court hearing, you may challenge the foreclosure.
- If the foreclosure is not challenged, the court orders your home to be sold.
The judge will set the date for your home’s foreclosure sale. If you intend to sell your home before the foreclosure sale, you’re more likely to be successful if you do so as early in the process as possible.
Options for Selling During Foreclosure
If you choose to sell your home after the lender has initiated the foreclosure process, you have a few options for doing so. However, you may have certain disclosure requirements that don’t apply to homes sold when not in foreclosure. To make sure you remain compliant with the law, it’s generally recommended that you work with an experienced real estate attorney.
Working With a Real Estate Agent
If your primary goal is to maximize the price you’ll get for the home, working with a real estate agent is usually the best choice. This approach is most likely to be successful if you have ample time before the foreclosure sale. A real estate agent may be able to maximize your home’s value in a number of ways, such as by:
- Conducting a thorough market analysis to set a realistic sale price
- Strategically marketing the home
- Staging the home
- Negotiating with buyers.
This option is most likely to be feasible if your home is in good condition. If it requires significant work, you may find that it’s more challenging to sell.
Selling to an Investor
Many investors make money by purchasing fixer-upper homes and then renovating and renting or selling them to generate a profit. Selling to an investor doesn’t always result in as high a sale price as selling to a more traditional homebuyer. However, it may be the most realistic avenue to take if your home is in disrepair or has other significant issues.
Not sure which sales strategy is best? Call The Law Office of Carlos M. Amor, P.A. at 954-453-7200 for a free consultation.
Short Sale
A short sale may be a good way to do damage control on your credit. If you successfully complete a short sale before your home goes to a foreclosure sale, it will typically be noted on your credit similar to a settled debt. Like a settled debt, a short sale will still negatively impact your credit but won’t damage it as much as a completed foreclosure sale would.
Benefits of Selling Before the Foreclosure Sale
If you are having trouble affording mortgage payments, the best time to sell your home is before the lender initiates foreclosure proceedings. The second best time is before the foreclosure sale. Selling before the foreclosure sale has many advantages:
Reduced Credit Damage
It’s no secret that foreclosure damages your credit. However, if you take the initiative to sell your home before the foreclosure sale, your credit may not be harmed quite as badly.
Maximizing the Sale Price of the Home
This is one of the most important benefits of selling your home before the foreclosure sale. If your house’s sale price isn’t enough to cover what you owe on your mortgage, you may still need to pay the lender the difference between the two balances. This is what’s known as a “deficiency balance.” Selling your home yourself — when you have time to stage the house, show it to potential buyers, and possibly work with a real estate agent — is ideal. While not a guarantee, doing so usually results in a higher price than a foreclosure sale.
A Financial Clean Slate
You may be able to convince the lender not to pursue you for any remaining balance on your loan if you handle the sale before the foreclosure. While some lenders could refuse to consider forgiving the deficiency balance, having the help of an experienced real estate lawyer might improve your chances.
Challenges of Selling During Foreclosure
The Sales Process Is Rarely Easy
It is possible to sell your home after foreclosure, but the process frequently comes with many challenges. These are some of the common difficulties associated with post-foreclosure sales:
- You have a limited time to complete the sale.
- Qualified buyers may avoid the home because of potential title issues.
- You may have to coordinate some elements of the sale with the lender.
- It might be difficult for buyers to secure financing.
Most real estate attorneys have helped buyers navigate similar issues. Hiring an attorney may minimize the impact of these potential issues.
How Can a Real Estate Attorney Help?
In most cases, it’s wise to work with a real estate lawyer when selling a house. When the house you’re selling is in foreclosure, having the help of an attorney is even more critical. Your lawyer may help you avoid costly mistakes and maximize your chances of rebuilding your finances and credit.
Attorney Carlos M. Amor has more than 15 years of experience helping clients navigate real estate challenges, and he may be able to help you, too. Call 954-453-7200 or fill out the online contact form to book your free consultation today.
