How to Stop the Foreclosure Process and Sell Your House Fast
Can You Negotiate with a Bank When The House Is In Foreclosure?
When it comes to foreclosure, banks are primarily focused on recouping the outstanding mortgage balance including interest, back payments, penalties and legal fees.
Typically, when a homeowner is behind on mortgage payments and the bank has started foreclosure, they are not willing to negotiate. This is because our court system has created a guaranteed way for the bank to get their money back.
In a foreclosure where no payments have been made for over nine months, the property has no equity, or the homeowner has abandoned the home, the bank will get a court order giving them control of the house. The Bank will then sell the house and recoup their mortgage amount (plus a huge amount of fees!) from the proceeds.
Often, they are not willing to negotiate with homeowners who are behind on payments. However, having a cash offer in place from a buyer, will often get the Lawyer for the Lender to slow or back off on the Foreclosure. There is no point for the Lawyer to Obtain a Judicial Listing or apply to the Courts for an Order for Foreclosure, if He or She knows the property is being sold.
Having a cash offer in place gives the homeowner more leverage.
The bank knows that if the homeowner can sell their house quickly, they will be able to receive the mortgage balance from the sale. This avoids the bank from having to waste time in court and then on the open (and unpredictable) housing market.
In some cases, banks will even discount the loan amount due to the benefits of selling to a cash buyer! We typically see this when the property is in poor condition, or there is a soft Real Estate Market.
One caveat is, if there is Mortgage Insurance on the Mortgage, the Bank will not discount. The Bank knows that if there is a shortfall between the sale price, and the amount owing, they will get paid by the mortgage insurance.
Dealing with a foreclosure can be a extremely stressful process.
The idea of trying to communicate with a bank or their Lawyer may seem unrealistic. However, if a cash buyer has an offer on a property they can easily communicate with the bank or their Lawyer for you. This enables you to keep your focus aimed at moving on to the next chapter in your life.
How to Stop the Foreclosure Process and Sell Your House Fast…Banks will typically only stall a foreclosure if there is a cash offer in place. One of the best steps you can take if your property is in foreclosure is to contact a reliable cash buyer who has experience buying homes and review what options they have for dealing with banks.
We Buy Houses Edmonton has been buying homes in Edmonton and Alberta for over 20 years, and we are here to help you navigate the process. Call us any time at 780-483-2006 with any of your questions, and we are here to help you with a quick and easy sale of your property!
