An exit that protects you
Selling before the foreclosure sale
If keeping the home is not realistic, selling before the auction is almost always better than letting it go to sale. At a foreclosure auction you generally receive nothing beyond what is left after the debt and costs are paid, and in several of our states any shortfall can still follow you. A sale you control protects whatever equity exists.
This tends to work when
- There is equity in the property that would otherwise be lost at auction
- The monthly payment is genuinely unaffordable going forward
- You have enough time before the sale date to close, or the lender will postpone for a signed contract
This tends not to work when
- You owe more than the property is worth, in which case a short sale or deed in lieu fits better
- You want to stay and a modification or reinstatement is achievable
How it actually goes
Establish what the home is really worth
Get more than one opinion. A listing agent's comparable market analysis is free, and so is a cash buyer's offer. They are different numbers and you should see both before deciding.
Decide between a listing and a direct sale
A listed sale usually nets more but takes longer and involves showings and repairs. A direct cash sale closes faster and as-is but typically at a discount. With a sale date on the calendar, timing is part of the price.
Tell your servicer a sale is in progress
Lenders will often postpone a sale for a signed purchase contract with a realistic closing date. They cannot consider what they do not know about.
Straight answer
Our conflict of interest
Homeowner Recovery Options is affiliated with Property Seller Solutions, a company that buys homes directly. If you decide to sell, you are under no obligation to sell to us or to anyone we suggest, and we will tell you plainly when listing with an agent is likely to net you more than a direct sale. You are entitled to get multiple offers, and you should.