Can I Sell My House To Avoid Bank Foreclosure in Savannah, GA?

Foreclosure is a terrifying prospect under any circumstances. Missing mortgage payments negatively impacts your credit score and if the bank forecloses, it will take years to rebuild your credit. To make matters worse, a foreclosure on your credit report will discourage landlords from renting to you after you’ve lost your home. Lenders will also be much less likely to offer you any financing because of your lack of credit worthiness.

There are several guaranteed ways to prevent foreclosure.  First, you can pay back the loan in full, or if the bank allows, you may pay back the missed payments to cure the delinquency.  This option is often the most difficult because limited financial resources often led to the foreclosure in the first place.

The second option is to file for bankruptcy.  We urge extreme caution if you’re considering this route.  A foreclosure on your credit record is second only in severity to a bankruptcy filing.  Worse yet, you may still end up selling your home while in bankruptcy in order to pay off existing debts.

The third option is to sell your house before the foreclosure auction.  There’s no time to list your home on the open market, nor will traditional buyers be able to easily secure financing to purchase a distressed property.  Selling your property as-is to a cash buyer will terminate the foreclosure, but only if the sale occurs before the auction. If you need a quick sale, we buy houses in Savannah, GA, providing a fast and efficient solution. Once the bank auctions off your home, you’ve lost all your equity and your right to live on premise.

What if I owe more money than what the house is worth?

Unfortunately, many homeowners find themselves underwater when facing foreclosure.  If the loan is new and the homeowner put little money down, the amount of equity is likely lower than if a homeowner has been making payments for years.  Moreover, if a loan was in forbearance or was modified, it’s likely that the interest and fees accrued wiped out whatever equity was in the home. 

Fortunately, we can still prevent foreclosure through a concept known as a short sale, but this arrangement must be negotiated between us (cash buyer) and the bank.  These scenarios are tricky, but not impossible, and the outcome is much preferable to foreclosure.  Even in the event of a short sale, we will work with the homeowner to develop a transition plan.  It is also possible that the homeowner may remain in the home and rent back to the investor. 

Missed mortgage payments happen for all kinds of reasons, whether it is a medical condition, job loss, or unexpected interest rate hike. In all cases, losing your house at auction is devastating and it’ll take years to repair the damage to your credit.  So even if you don’t have equity in the home, we can still purchase the home and prevent the foreclosure.

Steps to To Avoid Foreclosure in Savannah, Georgia

When facing foreclosure, you’ll want to follow these steps:

1.    Confirm the Foreclosure and Payoff Amount Immediately

There are instances where banks have incorrectly notified homeowners of foreclosure.  As soon as you receive any notice of foreclosure, call your bank and confirm the foreclosure.  Be sure to confirm the auction date, as well as the full payoff amount.  It is also wise to ask the bank whether satisfying the late payments will cure the delinquency.  Don’t skip over the fees and interest charged by the bank, as they can sometimes amount to a significant sum.

2.    Consider your options and timelines

Time is crucial.  Whatever you decide, you must act fast.  In Georgia, bank foreclosure auctions occur on the first Tuesday of every month on the courthouse steps of each respective county.  When the banks publish the first public notice of foreclosure in the newspaper at the beginning of the month, the auction is usually less than 4 weeks away.  We also strongly recommend you check out the resources and information provided by the Attorney General of the State of Georgia.  If you’re going to sell the home, you must involve the cash buyer immediately because we will have to coordinate with the banks to close before the auction. A few days delay can be the difference between getting cash for your equity or losing everything.

3.    Make a decision

If you’re going to sell your home, sign a purchase agreement as soon as possible and open up the lines of communication between the buyer and the bank.  If you’re going to file for bankruptcy, hire an attorney that specializes in bankruptcy protection.  If you’re going to scrape together the money to pay off the loan, make sure you know exactly where to send it and transfer the funds as fast as possible to avoid delays.  Finally, if your bank is amenable to a loan modification or forbearance, be sure to capture any agreement in writing.

Tax vs. Bank Foreclosures

Concerning foreclosure, there are two types: bank foreclosures and tax foreclosures. Both involve an auction, however after a tax foreclosure auction, the original homeowner has 365 days to prevent the highest bidder from redeeming the right to foreclose.  On the other hand, the highest bidder at a bank foreclosure auction takes ownership immediately. There is no second chance to purchase your home back once it has been sold at a bank foreclosure auction.

Considerations for Selling to Prevent Foreclosure

If you’re living beyond your financial means in a house you cannot afford, starting over in a more affordable home may be a good option.  You may be able to sell your home and earn some cash to jumpstart your transition to a new place. 

When facing such a tight timeline, selling your home on the open market can be challenging.  There’s no time for weeks of negotiation, repairs, tours, etc… You’ve got to sell the house for cash and fast.  Moreover, traditional buyers will likely be unable to secure financing to acquire a property in foreclosure and under distress.  Selling your property as is and without any financing contingencies is the safest way when time is of the essence.

We specialize in preventing foreclosure.  Nobody should lose their home at a foreclosure auction.  If you’re facing foreclosure, please call us.  We help everyone who reaches out and we’re always eager to lend a hand even if we don’t end up buying your home.  What’s most important to us is helping our neighbors.

Trust Home Buyers of Savannah, GA

Can I sell my house to avoid foreclosure? Yes, but make sure you sell to a cash buyer that knows what they are doing.  At Home Buyers of Savannah, we give you the best possible price for your home and a lightning-fast turnaround. Call 912-513-8744 to learn more about how it works and talk to a real person about your home-selling needs and conditions, like selling a flood-damaged house.

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