If you live or work in West Sacramento, it probably does not come as a surprise that there has been an increase in foreclosed properties lately. Your neighbors have been feeling the financial strain of the current economic situation, and you may very well be right there with them. But is there anything you can do about it if foreclosure is looming over your head? You may wonder: Can I sell my West Sacramento home in foreclosure condition before the Lender or foreclosure dogs close in on me?
The answer is… it depends. If you have been notified already by the Lender that you are in default and are going to foreclosure, then you have to first have the Lender’s permission, and it may be possible to go for a short sale. If you are only approaching foreclosure, there may be more options available. But in this article, we will focus on already being in default and foreclosure being imminent.
First, Get Your Lender’s Approval
You will have to get permission to be able to try for a short sale. You will definitely want to make sure that you get to speak with someone who has the authority to make a definitive decision, though. There is no sense at all in wasting one’s time with a front desk receptionist who is only going to have to hand you off to yet another person anyway. And if you try to sell without getting this approval first, you are just going to find yourself in hot water. Be honest and up front about why you are behind. They are not terribly likely to let you go with a short sale if you have not already defaulted. Show them that you aren’t behind because of irresponsibility or that you have hidden any of your financial info from them.
Be Sure to Have a Good Realtor
You may also even want to have a lawyer to help with the process of selling. Even if you are having financial difficulties, having these professionals in your corner from the beginning may pay off in the end. After all, you want to try to be able to sell the home for as near to what is owed on the home as possible. If the market is a bit weak, this may not be a possibility, so be sure to check with the pros.
Present Your Bids to the Lender
Unlike in a traditional home sale situation, the Lender has to approve. So, you have to take that highest bid to the Lender and get them to sign off on it before you can finalize the sale. Be ready and willing to give them even more details about your finances, explaining and proving that, if the sale doesn’t happen, there is no way you can pay off what you owe.
Some Things to Keep in Mind
If you get less from the sale than what is owed, you can still get hit with what is referred to as a deficiency judgment. There are some ways to avoid this, so be sure to talk with your Lender and stay in touch with them throughout the entire process.
Sometimes, you can work out a deal with them to get them to not go after a deficiency judgment, which is better for you. But if they do go for a deficiency judgment, you will still owe much less than if they had foreclosed to begin with.
A Final Note or Two
A short sale should always be your last resort. Do your research and make sure you have absolutely no other options to save your West Sacramento home before you pursue this option. There may be some government programs out there even that can help you, such as Keep Your Home California program, that you have not yet explored. Be sure to check out all options first.