Top 5 Mistakes to Avoid When Selling a Home in Foreclosure
Facing foreclosure in Florida can be stressful and overwhelming. There are a number of ways to avoid the process, such as by paying off your mortgage or redeeming your debt. However, these options are often not a possibility for those dealing with potential foreclosure. Still, that doesn’t necessarily mean you will need to go through court proceedings. Many lenders are willing to negotiate alternatives like short sales. If you choose to sell your home to prevent the consequences of foreclosure, it’s important to take steps to avoid common pitfalls. From mistake #1 (ignoring the problem) to mistake #5 (not hiring professionals), the following are some of the biggest mistakes you want to avoid when selling your home before foreclosure.
Mistake #1: Ignoring the Problem
Selling your home, either traditionally or through the short sale process, is a foreclosure defense option that you may be able to take, but only if you act quickly. Once the courts have gotten involved, you may be prohibited from selling your home. If you are still allowed to sell your home, unless you receive a very good price for it, you may be on the hook for paying off the entirety of the remaining mortgage even if the sale price didn’t cover that amount.
Instead, it is often better to take action as soon as you realize that you are having difficulty covering your mortgage. If you haven’t yet fallen behind on mortgage payments, you may be more likely to get a better price for your home, even if you need to take out other loans to cover them.
Alternatively, if you need to short-sell your home, you can potentially negotiate with the lender to accept the value of that short sale as compensation without seeking a deficiency judgment. Lenders may be less likely to agree to such friendly terms after the foreclosure process has been initiated.
The longer you wait to act when facing foreclosure, the fewer options you may have.
Mistake #2: Not Understanding Your Options
Perhaps the simplest mistake that many people facing foreclosure make is not getting advice from an experienced Florida real estate attorney. The foreclosure process is complicated, and the federal rules for loss mitigation procedures create several checkpoints and safety nets to allow you to redeem your loan. Furthermore, lenders typically prefer to negotiate alternatives rather than take on the time and expense of the foreclosure process.
But it can be challenging to navigate this process without understanding your options. Even if you are certain you want to sell your home instead of having it foreclosed, it’s vital to know the legal limits on when and how you can do so.
To ensure you make the best decisions for your circumstances, ensure you consult with a trusted attorney first. You can take advantage of a free consultation with attorney Carlos M. Amor to discuss your options in full.
Are you considering selling a home that is facing foreclosure? Contact The Law Office of Carlos M. Amor, P.A. at 954-453-7200 to schedule a free consultation by phone, online, or in person today.
Mistake #3: Setting an Unrealistic Price
One way to avoid foreclosure is to sell your house for enough money to pay off the remainder of the mortgage. As long as your home is still worth more than what remains on your mortgage, this option may be possible. However, unless you have a lot of equity in your home, you may not end up with much left over after the sale.
You may be tempted to set a higher price to get more from the sale. Unfortunately, doing so can easily backfire. The higher you set the price, the longer your property may take to sell. But the lender isn’t likely to wait. By setting an unrealistic price, you could end up in court with your house facing foreclosure, even if you are making a good-faith effort to sell the house. Because of this, it is often better to accept a lesser value and make the sale than to have your credit harmed by the foreclosure process.
Mistake #4: Neglecting Necessary Repairs
If you are falling behind on mortgage payments, you may not be able to afford to make repairs to your home. However, selling a home without first making necessary repairs can be costly.
When your home needs repairs, the assessed value may be reduced by more than the cost of those repairs. Spending $20,000 on repairing your roof, for example, could net you more than twice that amount on the sale price of the home. If you have acted preemptively, the bank might even be willing to lend you additional money to make those repairs with the promise that the house will be sold and the mortgage cured.
Mistake #5: Not Hiring Professionals
Too many people make the mistake of not hiring an experienced real estate attorney before selling their home. An attorney can advocate for your interests at every step and protect you from making mistakes that can jeopardize your future. With a lawyer’s in-depth knowledge and experience at your disposal, you can give yourself the best chance of obtaining a positive outcome.
Attorney Carlos M. Amor has over fifteen years of experience handling foreclosure cases involving home sales. He can guide you through the process and work to connect you with trustworthy appraisers, real estate agents, and contractors. While hiring professionals can cost more up front, it’s an investment that can pay off significantly in the long run.
Contact The Law Office of Carlos M. Amor, P.A. for Trusted Legal Help
Are you considering selling your Florida home to avoid the consequences of a likely foreclosure? Attorney Carlos M. Amor may be able to help you get the results you need to recover from financial distress after that sale. He offers a comprehensive range of services to South Floridians facing foreclosure, and he is also a licensed real estate broker. Don’t leave your future to chance.
The right legal advocate can make all the difference when you are dealing with foreclosure in Florida. Contact The Law Office of Carlos M. Amor, P.A today at 954-453-7200 to schedule your free consultation to learn more.
