Selling Your Home

First, we have a potentially simple form of curing a foreclosure: selling your property. This is where our focus will be. When I say, “potentially simple,” I’m implying that selling your home on the MLS may not always be as easy as you think while being in foreclosure. Selling your house privately via an off-market sale may be your best option. Let’s discover some reasons why.

Distressed Properties Have you ever heard of the term, “distressed property?” Unfortunately, there is no clear-cut definition as to what a distressed property is. However, there are certain factors that are considered when potentially labeling your home as a distressed property:

1. Condition of the home
2. Availability of utilities (inactive service)
3. Being in foreclosure or pre-foreclosure.
4. Overgrown vegetation
5. Boarded windows

Yes, even just being on the brink of foreclosure can influence your home’s distressed status. This is where selling on the MLS may be difficult.

Currently, over 70% of the homebuyer market is comprised of conventional buyers. Meaning, most people who are buying homes are using conventional mortgages. Conventional terms have become stricter ever since the market crash in 2008. This was done purposely to ensure that lenders are lending to actual qualified buyers and lending on homes that meet certain condition requirements. Generally, conventional lenders and even VA and FHA lenders, will not approve a mortgage on a distressed home. This is because of the risks associated with distressed properties.