Regular Sale While Home is in Pre-foreclosure?

Can you do a regular sale while your home is pre-foreclosure?

2 Answers

YES - you can do a regular sale while the home is in a pre-foreclosure status.  As long as you have equity in the property, enough to pay commissions, title insurance, escrow fees, and pay off the outstanding mortgage liens, you can definitely do (and SHOULD DO) a regular sale.  Contact your lender right away -- they do not want your home!  Al \l theyreallt\y want is their money, so they may work with you to extend the sale date... I recently helped a seller with this exact scenario.  They netted $90K that would have been lost in the foreclosure process.  Do not wait on this -- be proactive and get the money you deserve!

The lender wants their money. If you can do a regular sale and pay off your mortgage note then all the more reason to sell it.

If you are in pre-foreclosure it is generally an indication that the mortgage company has not been paid their monthly installments and unless the payments are brought current (barring any other undisclosed circumstances surrounding non payment) you are headed for foreclosure.

A regular sale means you can sell the home for what you owe your mortgage company as well as the cost to sell it and the market will bring that price to you - the seller.

A short sale is when you have to sell it due to hardship and the market cannot bring the price you need to pay off your mortgage and the cost to sell. The difference between what you owe your lender and what you can sell it for is known as the "shortage" and hence the short sale. Think of it as Market vs Mortgage.