CHAPTER 8 How to Avoid Foreclosure by Selling Your Home
Can you sell your house to avoid foreclosure? Yes! You have the right to try to save your home until that point when it sells at an auction. By selling your home, you can manage to pay your lender what you owe, including missed payments and any penalties. Take note that once the Notice of Default has been filed, you might have only a few months to sell your home before your lender auctions it. Once you list your home, notify your lender. Selling your house before it forecloses is often the best option, especially in cases in which you have equity in the home. Why is that so? Having equity in your home means its value is higher than what you owe your lender. Therefore, you can sell the house, pay off the loan, and pocket any balance left. The advantage of selling your home before the foreclosure process is over is that if you play your cards well, you can sell it at a high price that allows you to have some money left after paying your lender. However, if the lender gets to sell your home at an auction, they will only be interested in making what you owe them from the sale. You don’t stand to make any extra money from the sale.
EXCESS MONEY
Once your property has been sold at the auction, you have the right to any remaining funds once the lender has recovered the 51
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