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Does it make sense to list my house
with a realtor if I am in foreclosure?
When a property owner is trying to avoid foreclosure, there
are many options available. Some of them may work and others
may just be a waste of time in a given situation.
The person facing foreclosure needs to look at the circumstances
and the availability of various options.
One option that makes a lot of sense is to list the home
with a realtor.
There are few things to realize when listing a home in foreclosure
with a realtor. The amount of time available to list and market
the house is crucial to making it work.
If the house is in foreclosure and going to auction in less
than a month, listing with a realtor is not a hopeful option.
But if the foreclosure process has just begun, listing with
a realtor may be the way to go.
The first step to take is to call the lender and communicate
your intentions. Contrary to popular belief, most lenders
do not actually want to foreclose on a home. It is costly
and time-consuming. Because of this, if the borrower is willing
to work with the lender and keep the lines of communication
open, a lender will generally work the borrower.
Ask for a mortgage forbearance and list the house with a
competent realtor as soon as you decide this is what you want
to do. A forbearance means that the lender is giving a short
time to bring the mortgage current before proceeding with
the foreclosure. Usually the time period will be around 60
days, but some lenders will give more or less time.
Realtors have many tools at their fingertips and a good realtor
can give a property owner a realistic idea of how feasible
it is to sell the home before it is foreclosed upon.
A realtor will have access to the average number of days
on the market (DOM) it takes for a home to sell in a particular
neighborhood. Be sure to ask the realtor for an adjusted DOM
for the home that is in foreclosure.
An adjusted DOM will give you an idea of how long it will
take to the sell the home and at what price it should be listed
given the unique qualities the home has. For example, if most
homes similar to your property are being sold in 45 days at
the price of $120,000, then that gives a starting point for
what the house should be listed at and how long it will take
to sell. Adjusting for differences in the property is crucial
because a major problem or major renovations can affect these
calculations.
Listing with a realtor is best for someone with equity in
the home. In fact, the more equity there is in the home, the
more likely that an offer will be made on the home that is
sufficient enough to accept. An ideal situation would entail
enough equity to cover the amount of any liens against the
property and closing costs.
To get started, look for a realtor who has experience in
the business and who has a good track record for selling homes
without the listed properties spending too many days on the
market.
The only major drawback is that most realtors will charge
a commission fee of about six percent. Nevertheless, the benefits
definitely outweigh the expense here. Get the best realtor
available who is willing to work with you. It is better to
sell the home than to end up with nothing.
Click here to learn how to
choose a realtor to work with.
We already have a list of reliable
realtors that work with homeowners in foreclosure. If you
are interested in selling with a realtor, do not reinvent
the wheel. Call us for a FREE Situation Evaluation. Choosing
the wrong realtor can be the difference between getting money
for your equity or losing it all.
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