Real estate investments are tricky. If you’re living in a home you can no longer afford, you may need to sell it quickly. You may have trouble doing so, since even an experienced real estate agent will occasionally work with a home that fails to sell, for all sorts of reasons. Maybe the market isn’t favorable, maybe they just need more time to get a great deal.
That said, if you can’t find someone who’s willing to buy your house when you need them to, you may be wondering if you can live in your distressed home. Below, we’ll let you know what you need to consider when trying to stay in your home, what timeline you can expect for the foreclosure, and more.
Have You Filed Bankruptcy?
If your personal finances aren’t in order, you may be able to file for bankruptcy in order to delay the bank from foreclosing on your property. Depending on your situation, this may not give you much time to sell the home. But it can be useful for saving money or finding a good deal before the bank seizes your property.
Why is the Property Distressed?
As we’ve previously discussed, a distressed property is one that’s being sold because it’s been foreclosed, or one that’s in danger of foreclosure.
Along with the financial consideration of whether or not a lender is willing to let you stay in a home you no longer own, you also need to consider the condition of the home itself. If mortgage payments are unaffordable, there’s a good chance that repairs also weren’t affordable.
If your home has experienced major damage or is in a state of disrepair, it may not be advisable to live in it anymore.
How Long is the Lender Going to Give You?
How long you have to live in your home after it’s been foreclosed will vary depending on the lender. Generally speaking, you can expect to get kicked out anywhere from three to 30 days once the foreclosure process is finished.
That said, there are several signs before this point that you may not be able to afford your home. A lender can’t start foreclosing your property until you’re a minimum of 120 days late on your mortgage payments, and the foreclosure auction will generally take longer than that.
That’s why it’s important to find real estate investors who will purchase a distressed property. Short sales (i.e. sales made where the value of the property isn’t able to compensate for debts secured against the property like mortgages and tax liens) are less favorable than regular sales.
Rather than letting tax bills get bigger and mortgage payments go unpaid, it’s more advisable to sell the home when you can no longer afford it.
Looking for a Way to Get Rid of Your Distressed Property Fast?
At Freedom Home Buyers, we’re interested in buying your distressed property. We understand how difficult distressed sales can be, even if you can afford to acquire the services of a real estate agent.
We’ll offer a fast cash offer that takes into account home prices in the area. We make offers on all properties, which allows you to rest easy knowing that your property is sellable.