The experience of foreclosure can send anyone into a tailspin. You worked so hard to get into your current home, and now you’re not only going to lose it, but you also have to act quickly to save your credit and give yourself a decent shot at moving forward.
First, take a deep breath and remember that there are options, and you still have time. No matter where you are in the foreclosure process, you can still sell your home for cash and close in only five days.
Your next step is to determine where you are in the foreclosure process and what your timeline is. When you know what to expect, you know how to strategize. Always remember that the date you’re counting down to is the date of auction. You can sell your home up until that specific date.
Here are some tips for determining how much time you have left before your house’s future is out of your hands.
Talk to Your Lender
It’s very common for homeowners to avoid their lenders when they know they’re going into foreclosure. This is a natural instinct. Who want to connect with the person who’s threatening to take their house out from under them?
The truth is, you’re not going to make the process worse by speaking with your lender. However, you probably will get some clarity. They should be able to give you a sense of your timeline, and you may even find they’re willing to do a short sale negotiation so it’s easier to sell your house quicker. (More on that later.)
Is it a Judicial or Non-Judicial Foreclosure?
Many factors can influence the length of the foreclosure process, including the laws of your state and how many other foreclosures your lender is currently working with.
Another major factor is whether your foreclosure is judicial or non-judicial.
If a foreclosure is “judicial,” that simply means the lender is handling foreclosure through the court system. If your home is located in California, yours is most likely not a judicial foreclosure. It’s far more common for lenders in the state to choose a non-judicial path. That said, if you happen to be one of those rare homeowners looking at a judicial foreclosure, you can expect the process to drag out a little longer, giving you a little extra time to sell your home. How long exactly is difficult to predict. But probably longer than the timeline we’re about to lay out for you.
The downside to a judicial foreclosure is that you will ultimately be held responsible for paying the difference between what you owe on your home and what the house sells for at auction.
Non-judicial foreclosures don’t involve the court system, which means fewer hoops to jump through and a much more streamlined process. In other words, things can move fast. On the flipside, the lender can’t hold you responsible for the deficiency if the house sells for less than the value of your loan.
If yours is a non-judicial foreclosure, here’s how to figure out how much more time you have before auction.
Have You Received a Notice of Default?
If you’ve missed a payment or two on your mortgage, you are in what’s called “pre-foreclosure.” The terms of your loan lay out how long you can remain in this state until you are officially in default. The most common timeline is 90 days.
Once you receive a Notice of Default, you are given 90 more days to pay what you owe and bring your account current. That doesn’t mean you only have 90 days to sell your house. But you should also know that things can move pretty fast once those three months are up. If you already know you won’t be able to make your payments, now is the time to start looking for a buyer and negotiating a short sale, if necessary.
Upon receiving a Notice of Default, the average California homeowner can expect about 110 days until their home is sold at auction.
Have You Received a Notice of Trustee Sale?
After your 90 days are up, the lender is cleared to schedule your home for auction. You’ll know they’ve done this because you’ll receive a Notice of Trustee Sale.
This part of the timeline is harder to predict. The turnaround can be really quick, with auction set for as little as 20 days later. However, it has happened that houses have waited months—even years—to be sold at auction.
Nevertheless, your safest bet is to count on 20 days.
Sell Your Home Quickly
The most important thing to realize is that, while there are some standards in the foreclosure timeline, each situation is unique. Only your lender can give you crystal clear picture of how much time you have.
The good news is that there are options for selling your home quickly when you’re in a bind. Your lender may even be willing to negotiate a short sale amount with you. A short sale is when you sell your home for less than you owe, and the lender agrees to accept that amount as full payment. It may seem like a hard deal to get, but the truth is, foreclosures are costly to your lender. Sometimes they can save money in the long run by accepting a short sale.
Whether you manage to swing this deal or not, MAC Properties is a great resource for homeowners who need to sell their house quickly. We pay cash and can close in as little as five days. There are also no commissions or hidden fees. Every dime is yours, so you can pay off your loan, protect your credit, and move forward with a clean slate.
We know this is an overwhelming time, and we want to help in any way we can. Please don’t hesitate to contact us with questions. We’re always here for you.