QUEEN CREEK PREFORECLOSURES
Facing a pre-foreclosure
is incredibly stressful. We know this, because we personally avoided
foreclosure by doing a short sale on our home in 2009 when the real estate
market went downhill. Taking control of the situation now by listing with a
realtor is almost always a better financial and personal move than letting the
bank foreclose. All banks prefer you list and sell your home with a Realtor
before you do a foreclosure, because a foreclosure costs the bank more money to
carry. You may have equity in your home and may not realize it. We are SFR
certified specialists (Short Sale and Foreclosure Resource.) Time is of the
essence!
Here is a breakdown of the most
compelling reasons to list your home with a realtor instead of walking away to
foreclosure.
1. Protect Your Credit Score
Foreclosure is one of the most
damaging events that can happen to your credit profile, second only to
bankruptcy.
- Foreclosure:
Can drop your credit score by 100 to 150 points or more, and the
mark stays on your credit report for 7 years.
- Selling/Short Sale:
While a short sale will still affect your credit, the damage is typically
much less severe, and your score can begin recovering much faster because
you took proactive steps to settle the debt.
2. Buy a New Home Much Sooner
If you want to own a home again in
the future, the timeline looks vastly different depending on how you handle the
pre-foreclosure.
- After a Foreclosure:
Traditional lenders (like Fannie Mae or Freddie Mac) typically require a
waiting period of 5 to 7 years before you can qualify for a new
mortgage.
- After a Successful Sale/Short Sale: The waiting period is often reduced to just 2 to 3
years (and sometimes even less under certain FHA guidelines if you
weren't in default prior to the sale).
3. Avoid a Deficiency Judgment
When a bank forecloses on a house,
they sell it at an auction—often for a rock-bottom price. If the sale doesn't
cover what you owe, the bank can sue you for the difference. This is called a deficiency
judgment.
- An experienced realtor can market your home to get the
highest possible market price, minimizing or eliminating that gap.
- If it turns into a short sale (selling for less
than the mortgage balance), a realtor can negotiate with your lender to
have the deficiency waived entirely as part of the sale agreement.
4. Control the Timeline and Your
Privacy
Foreclosure is a public and often
embarrassing process. Legal notices are published, a sign may be placed on your
lawn, and you have zero control over when the sheriff or bank marshals show up
to evict you.
- Listing with a realtor allows you to keep the situation
discreet.
- You get to decide when people view the home, and you
can negotiate a graceful move-out date with the buyer, preserving your
dignity and privacy.
5. Potential to Walk Away with Cash
(Equity)
Many homeowners in pre-foreclosure
assume they have no equity left, but due to recent market appreciation, you
might be surprised.
- If your home is worth more than you owe, a realtor can
help you sell it quickly, pay off the past-due balance, and walk away with
a check at closing to help you start fresh.
- Even if you have zero equity, some lenders offer
"Cash for Keys" incentives or relocation assistance to
cooperative sellers who choose a short sale over a lengthy foreclosure
process.
Don’t
delay, call us today. Queen Creek Realty Homes and Rentals – (623) 275-3774
QueenCreekRe.com - Not intended to solicit a listed property
