How To Sell Property Before Foreclosure In California?

 

Default in the loan payment or non-compliance with the mortgage term can result in a foreclosure notice. It is surely disheartening news that you can expect to receive. After all, you have created countless memories in your beloved house.

 

But now, you are left with two options. The lender will take possession of the house. Or, you can save yourself by selling the foreclosed property. Perhaps, you might want to learn more about the second option. But before we get started, let’s know how foreclosure works.

 

Foreclosure Process

Generally, the process starts when the homeowner misses one payment of the mortgage. The lender will send a “missed payment” notice to inform the borrower. However, if the default continues, the lender will send a “demand letter.” These are to give the borrower a chance to make the payment and safeguard the property.

 

However, if the borrower fails to pay the mortgage for 90 days, the lender will issue a “Notice of Default” to the foreclosure department. After the notice, the borrower has 90 days to protect the property by repaying the missed payment and the penalties. If the borrower ignores this notice, the situation might become more complicated.

 

Type of Foreclosure

 

In California, there are two types of foreclosure, i.e., judicial and non-judicial. In a non-judicial foreclosure, the sale is made by auction. It is an easy way out for the lenders as it doesn’t include any court costs or debt collection agency. Therefore most of the lenders prefer this.

 

However, judicial foreclosure is more lengthy and complicated. The lender needs to take permission from the court to foreclose. It requires several formalities. Thus lenders usually avoid it.

 

Selling The House In Pre-Foreclosure

The 90 days that the borrower gets to redeem is known as pre-foreclosure. If you sell your house in the pre-foreclosure, you’ll be able to protect yourself. You can use the sale amount to pay the lender every single penny that you owe. It includes missed payments and penalties.

 

Now the question is, who will buy a foreclosed property?

 

Fortunately, there are several home buying companies or flippers that are interested in such types of property. They generally purchase houses for cash in california that might help you in settling your debt. Moreover, you don’t need to spend money on repair and maintenance as they buy the property in the exact condition.

 

Apart from this, you’ll get instant cash too without any commission or agent fee. That means you’ll actually save money. If you are worried that you might not get a reasonable price for the property, then you don’t have to take any stress.

 

The buyers will schedule a property visit and conduct a property assessment to offer a genuine price. It’ll be easy, fast and help solve all your issues.

 

Beware of scam

Due to your current situation, some people might try to scam you. They might offer unbelievable amounts of money to lure you in. However, you should practice due diligence while contacting them. Check if they have any websites and also read the testimonials and reviews. In addition to this, you should also read the agreement offered to ensure that the company is authentic.

 

Final words,

A foreclosed property is not only disheartening, but it might also affect your future credits. Therefore, you should sell the property as mentioned above and safeguard your future.