Pre-Foreclosure Sale
Frequently Asked Questions

Q: When should I sell my home?

A: If you can no longer afford your home and you don't see your financial situation improving in the near future, your best option would be to sell the home prior to a completed foreclosure.

Q: Is my lender likely to help me in this situation, or give me any leeway?

A: Your lender will usually agree to give you a specific amount of time to find a purchaser and pay off the total amount owed. You will be expected to obtain the services of a real estate professional who can aggressively market the property.

Q: How much should I sell my home for?

A: You should always try to get as much as possible for your home but there are really two deciding factors. The timeframe you have in which to complete the sale, and how much you owe on the property.

If you have little time to sell before the foreclosure is completed, you may have to discount your price. In a slow market this may require a large discount if possible. If you see that you're not getting much response from buyers and you're running out of time, lowering the price will usually lead to a faster sale.

The price you sell your home for will need to cover all of the principal balance left on the loan, plus missed payments, interest and fees from the foreclosure proceedings. Your lender give you this figure so that you sell your home for the right price.

The price that you sell your home for should take into consideration these two factors. Your sales price needs to cover the entire amount that is owed to the lender, and the time with which you have to sell.

Q: What if I owe more than the home is worth?

A: This is a common occurrence in markets which home values are falling. If you find that your home is worth less than what you owe, your buyer may ask your lender to consider selling short, or more commonly referred to as a Short Sale. More information is provided on our Short Sale page.