Worried about Foreclosure In Alabama? Selling your home when going into foreclosure is an option that most homeowners have no idea about. Foreclosures can be a very straining and disheartening process that homeowners may experience. This is probably why most homeowners think it is an impossible situation.
In the quest of finding a solution to defaulting on their mortgage loans, the question that comes to the mind of many homeowners is, “Can I sell my home when going into foreclosure?” Well, the answer to that question is yes. Yes, you can sell your home when going into foreclosure, but how? This article answers the question of how to sell your home when going into foreclosure in Alabama.
Until your home is sold at the foreclosure auction, there is more than enough room for you to redeem your home by preventing it from going into foreclosure and ruining your credit score. You can do this by selling your home and paying your lender everything you owe, including penalties and back payments.
In Alabama, the law grants you a “statutory right of redemption” for one year. This means that within a year of your home going into foreclosure, you can repurchase it. If you can pay off your debt with the mortgage company, plus fees and interests, you can get your home back. You can also choose to sell it if you have an available buyer.
How Does Foreclosure Work?
A process of foreclosure begins the moment the mortgage company issues a notice of default to the homeowner. The entire process can run for as long as six months to a year or even more in some instances. This depends on the negotiations between you and the mortgage company serving as the lender. This period between when the mortgage company issues you a notice and the foreclosure auction sale, there is still enough room for you to pay off the debt and avoid foreclosure.
Foreclosures can significantly damage your credit score. It makes it hard for you to borrow some money later in the future. This means it is necessary to avoid your home reaching a foreclosure as much as possible.
How To Sell Your Home When Going Into Foreclosure In Alabama
Although there are several options available to a homeowner who wants to avoid foreclosure, selling your home during the pre-foreclosure period is one of the most advisable. It typically creates a win-win situation for both the homeowner and the mortgage company. The homeowner can avoid the potential damage that a foreclosure will cause to their credit score. Also, the lender gets to avoid paying the costs associated with foreclosure proceedings.
Most lenders are open to working with homeowners to prevent a foreclosure. Therefore, one of the first things you should do is reach out to your lender and find out when they plan to hold a foreclosure auction on the home. Additionally, If they are open to working with you, you can ask them to postpone the auction to give you some time to get a buyer. This will allow you to get a fair price for your home.
During your interaction with your lender, you can discuss the proceeds from the home sale that they are willing to settle for. If you are proactive in contacting your lender and working with them, you will make a positive impression. This makes you more likely to get favorable responses, including the option of a short sale.
You can then list the house for sale, and when you get a buyer with a fair price, you can close the deal. Doing this will achieve a win-win situation for the lender and, more importantly, for yourself.
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