If you’ve fallen behind on your mortgage payments and feel like you’re drowning in bills, you may be thinking that your only option is to sell your home. Is this even possible? Yes, as long as the bank hasn’t started the foreclosure process yet.
Foreclosures happen incredibly fast. If you miss one mortgage payment you might receive a notice of foreclosure from your lender within that same month. If you miss payments for four months in a row, they are able to legally reclaim your home and you will have to vacate immediately. This situation is less than ideal, but it can be avoided.
If your house gets foreclosed on, this can cause so many problems in the future. Your credit score can drop as much as 300 points, maybe even more depending on how far behind your payments are. This will severely damage your credit borrowing ability in the future, whether it be applying for phone service, an auto loan, or a credit card. You are also completely unable to apply and qualify for another home loan for seven years.
Can I Sell My Home if I Am Behind on My Mortgage?
The number one factor that determines your ability of selling your home with behind payments in Oklahoma to avoid a foreclosure is the value of your home. Is it worth more or less than what you owe on your mortgage?
If you have fallen behind on your payments, but your house is worth more than what you owe on it, you can sell your house and use the money received to pay back the balance of your mortgage. This will give you the opportunity to pay off your whole mortgage while saving your credit score from foreclosure. If you are lucky, you may even walk away from the situation with a little bit of extra cash.
If your home is worth less than what you owe on your mortgage, you will need to sell your home as a short sale to avoid foreclosure. If you accept the offer on your home, you will come up short of the balance you owe. The only way this is okay is if the bank approves and accepts you for a short sale before you list your home.
We Can Help You
If you are interested in selling your home to avoid foreclosure, we can help. Give us a call and we can go over all of the options available to you and what we can do to help you. If your home value is more than what you owe, that’s great. We can absolutely help you by buying your home.
If your home value is less than what you owe, you will need to get approval from your lender for a short sale. This will allow you to give the lender less money than you owe, but you will be considered even and not owe any more money.