Can you still sell your home if you get a foreclosure letter?
Receiving a letter from a mortgage lender indicating that it may or repossession in the future does not limit your rights to sell the house should it occur. Usually, you have the right to sell your home at any time before the foreclosure sale is conducted. The letter notifying a potential foreclosure can be one of several types of formal notice required by state law.
A foreclosure is a limited and very specific process closely regulated by state law. Generally, the mortgage lender must send several messages before the foreclosure sale is conducted. As a result, the implementation process will usually take several months to be carried out by the mortgage lender. This means that you will have at least one or more months from the date you receive the first letter of the lender and the date it conducted the foreclosure sale.
The letter of foreclosure the lender can receive a formal notice of default or notice of sale. The first informs you that the lender considers you in default because you failed to make your payments on time, and this triggers the right of the lender to begin the foreclosure process. The notice of sale is the last notification you will receive while they proceed to foreclosure, and gives you the time, date and place in which they held the foreclosure sale on your home. This action takes the form of an auction, in which a home is sold to the highest bidder.
Title your home
Even if you are in arrears on your mortgage loan, yet you’re still the owner of the legal title of your property. This means that your name is on the deed to the house, which in turn means that if you want you can transfer it to someone else. You can only prevent the foreclosure sale if you get enough time to fully settle the outstanding balance of the mortgage lender money. As long as you do the payment, you can sell your home at any time before the foreclosure sale to occur, since the time-until-you’re still the homeowner.
You can offer
Another option for the homeowner who is facing foreclosure of this type is allowed to perform the foreclosure sale, and then appear to be the highest bidder. The law does not prevent the borrower can bid at the foreclosure sale. This means you can buy your house for a smaller amount than originally paid for it. Potentially, you can buy the property at the foreclosure sale and immediately sell it to someone else. Of course, this assumes you have the money to pay the purchase price of the home in foreclosure sale.