People wish to have every comfort and luxury of life, but not everyone is affluent, and many people rely on loan options to fulfill their financial obligations. There are loans available whether you want to start a business, buy a house, get a new car, or pay your tuition fee. But there are certain considerations that you must know about and follow the rules to obtain a loan. The most important aspects that nearly every lender analyzes before giving a loan are a person’s credit score, monthly income, and debt to income ratio.
According to the credit score, a person has to pay some money as a down payment, and then pay scheduled monthly payments along with the interest rates. If a person fails to pay the monthly payments for consecutive months due to financial hardships, then chances are he/she may default on his loan amount. The lender, on the other hand, to avoid financial loss may apply for a process known as ‘foreclosure’ which helps the lender to recover the remaining loan amount from the borrower that he owes.
Foreclosure is a legal activity where the lender has the right to recover the remaining balance he owes by taking ownership and selling the mortgaged house of the borrower. The borrower usually defaults on the loan when he/she misses loan repayments for many months in succession. Foreclosure can also happen if a person does not follow the mortgage rules. The foreclosure rules vary from state to state, but many times the lender gives an opportunity for borrowers to pay the remaining balance to avoid any legal proceedings.
The average number of days that are specified for the foreclosure process to begin is 673 days which comes to be nearly one year and 10 months. If the borrower is facing any financial hardship and crisis due to any ongoing pandemic such as Covid-19, then he has the opportunity to pay the balance for another 12 months with no obligation of any late fees.
As a homeowner, when the chances of foreclosure become a reality, then you have the option to sell the home and that too quickly as selling a house is not simple and may take months. The three factors you need to consider to sell the home to avoid foreclosure are marketing, pricing, and the condition of the market. The steps you need to take are pricing your house correctly and then marketing the sale of your house. Some of the essential things to consider are
Do not Overprice the House
One of the most common mistakes that homeowners do when faced with foreclosure is to demand more money for the house than it is worth. Many potential home-buyers already are clear about the price range and would not even look at your house. The homebuyers will also look for other houses at the same price and then look at which house gives them more value. Your house can sit on the market for months if the pricing is not done carefully.
Ensure what your Home is Worth
You need to ask the real estate agent to set the price, which depicts the worth of the house. The real estate agent can also perform a Comparative Market Analysis (CMA) that helps to know the prices at which similar houses in the neighborhood are sold. If you want to sell the house fast, then one of the most important steps is to keep the price of the house 10% as when the house is underpriced it attracts many potential home-buyers.
Know the Lowest Price you can Accept
A homebuyer is always looking for a deal where he/she can save money and not pay the full premium price. If the remaining balance you owe is more than the value of the house, then you need to apply for a short sale application to the lender and ask the lender the minimum price that can be accepted.
Place ads For Sale of your on the Internet
It is the job of the real estate agent to use every possible channel to market the sale of the house. The most cost-effective way is using online sources as most homebuyers are now looking at websites, social media pages, and forums to get informed of houses that are up for sale. There are many listing websites that can be used to advertise the house.
Make Arrangements to Improve the looks of The House
One of the most necessary things to sell the house is to prepare the house for viewings. The preparation includes all the activities and steps such as looking for all the minor or major faults and doing the repairs, and also cleaning the house and improving its look. Many home-buyers make up their mind to buy or not just take the first glance at the house. You should also repaint the house as it makes the house look pristine and clean. You should also think from a buyer’s perspective and see any negative factors that can affect the sale of the house.
One of the drawbacks of involving a real estate agent for the sale of the house is that it is a long process as the house will be listed and then there are several factors that you need to do before the actual sale of the house. You also need to pay a handsome amount of money in terms of fees and commission to the real estate agent.
The most effective solution to not only sell your house quickly but also avoid paying any fees is to sell the house to a real estate investor. The home investor is always looking for foreclosed properties that they can buy and then use it as an investment. A home investor will simply view your house and give a price at the same time which you can accept or reject, but most homeowners accept as they have to sell the house quickly to avoid foreclosure. The home investors also pay all the closing costs, and within two weeks you also get the payment for selling the house. But you have to contact the home investor swiftly to avoid any hassles and timely prevent any foreclosure.