You have a mortgage loan on your Orange County home and have fallen behind on your payments. The lender has scheduled a foreclosure sale date, and you want to know how much time you have before the sale. If that’s your case or you are afraid it could be, this article is for you.
We’ll go over the basics of foreclosure and your options to make a sale in time.
How Long Do I Have Before A Foreclosure Sale?
The foreclosure process in Orange County can take several months. First, the lender must send you a notice of default, giving you 30 days to update your payments. If you don’t, the lender can file a notice of sale, which starts foreclosure.
Once they file the notice of sale, you have a grace period of 120 days before the foreclosure sale can take place. That time allows you to sell the house, refinance the mortgage, or work out a repayment plan with the lender.
Selling Before Foreclosure
You might be wondering how much time to sell the house you have. It doesn’t matter how much time remains for the foreclosure sale; as long as it is before the auction date, you can sell your property. You don’t need the lender’s permission to do so, and you can keep any proceeds from the sale.
If your financial issues were temporary, and you now have the money to bring your payments up-to-date, you can avoid foreclosure by paying off the entire loan balance. But, if you still can’t afford the payments, selling before the foreclosure is a perfect way to avoid having a foreclosure on your record.
Steps For A Pre-foreclosure Home Sale
- Get A House Estimate
Before you list your house, research the Orange County market to find out how much your home is worth. To do this, you can look up recent sales of similar properties in your neighborhood or get a professional appraisal. Don’t underestimate this step; if you set the price too high, your house will sit on the market, and if you put it too low, you’ll lose money.
- Estimate Your Debt On Mortgage Plus Late Fees
To know how much you need to sell the house for, you must first calculate how much money you owe on your mortgage. If you’re behind on payments, late fees are probably tacked on as well. To get an estimate of this number, contact your lender and ask for a payoff statement. Mortgage lenders have to give you this information upon request.
- Subtract Selling Fees
Now that you know how much your house is worth and how much you owe on the mortgage, it’s time to subtract the selling fees. These include the real estate agent’s commission, any outstanding HOA dues, and other miscellaneous costs associated with selling a property. Don’t forget to factor in these fees when setting your asking price.
- Continue With A Qualified Agent
Selling your house before foreclosure is a different process than a traditional home sale. You’ll need to work with an experienced real estate agent who knows how to handle these types of situations. If you attempt to sell the house on your own, you’ll likely end up losing money in the end.
- Stay In Touch With Your Lender
Don’t make the mistake of thinking that because you’re selling the house, you no longer have to communicate with your lender. In fact, it’s quite the opposite. You must stay in touch with them throughout the process and keep them updated on your progress. If you can’t sell the house in time, they might be willing to work out a different arrangement with you as long as your effort is visible.
Does A Short Sale Work For Me?
When you’re too far behind on payments and selling the house before the foreclosure sale is no longer an option, you might be able to make a short sale. A short sale is when the lender agrees to let you sell the house for less than what you owe on the mortgage. For a short sale to work, all parties must agree to the terms; this includes the lender and the buyer.
To get approval for a short sale, you must prove to the lender that you’re in a difficult financial situation and can no longer afford the payments. You won’t get the approval just because you want to sell the house for less than what you owe.
Avoid Foreclosure with OC Home Buyers
How about we take the hassle and buy your home before foreclosure? At OC Home Buyers, we’re experienced in working with homeowners in pre-foreclosure. If you’re interested in learning more about how we can help you, visit our website now!