value at the foreclosure auction. Who knows? You might even recoup your equity by redeeming the property for the foreclosure sale price, selling it for the fair market value to another new buyer, and keeping the difference. As we’ve already noted, your financial condition might not be at its best right now, so coming up with a lump sum payoff might be beyond your ability. If settling your debt — whether before or after your home is sold at foreclosure — does not seem like a viable option for you, then it’s time to consider avoiding foreclosure altogether by selling the home first, yourself.
POINTS TO REMEMBER:
• If you intend to sell your home to pay off the full debt you owe on your home, notify your lender. Your lender may be willing to postpone foreclosure to allow the sale. • You must also receive the lender’s permission if you intend to conduct a short sale, which would generate proceeds that are less than what you owe on the property. • Subject to the laws of your state, the pre-foreclosure equitable right of redemption gives you the right to sell your home before your lender sells it at a foreclosure auction. • The post-foreclosure statutory right of redemption grants you the right to redeem your home after a foreclosure. Applicable periods and other specifics vary by state.
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