Can I Sell My Home In Oklahoma If It’s In Foreclosure?
Foreclosure occurs when a homeowner is unable to make their mortgage payments on time and has no way to catch up on the missed payments. Because a mortgage is a legal agreement between you and your lender, once you’ve defaulted on the loan, the lender can auction off the property to cover any outstanding debts, leaving you homeless and with terrible credit. If you’re facing foreclosure, it’s crucial to explore options such as sell my home in Oklahoma if it’s in foreclosure to avoid the detrimental consequences.
- Job loss and loss of income
- Divorce or death of a spouse or partner
- Mounting debt, including medical and credit cards
- Moving without being able to sell the home
- Natural disaster
Petit Home Solution-We Buy Houses is a local company that has built its business by buying distressed houses and properties in the area for cash. They promise competitive cash offers without the hassle of dealing with real estate agents, title companies, traditional bank financing, and more!
What is Foreclosure in Oklahoma?
Let’s say you or your spouse recently lost your job. You still have the same bills to pay but unfortunately, you don’t have the money to cover your expenses, including your mortgage payment. What happens now? Even if you find another job the amount of debt you’ve accrued during that time might be too large for you to pay off in a reasonable amount of time. When this happens, the bank starts the process of foreclosure.
How Long Do You Have To Get Out of Your House After Foreclosure in Oklahoma?
The steps for foreclosure in most states are missed payments, public notice, foreclosure, auction, and eviction, but the amount of time for each step varies based on the state. You could have anywhere from 120 days to nine months before the bank can foreclose using either a judicial or non-judicial foreclosure. During this time, your lender will reach out to you by phone, mail, and email to let you know about the process.
The Different Types of Foreclosure in OK
There are two different types of foreclosure you may experience: nonjudicial foreclosure and judicial foreclosure.
What Is Non-Judicial Foreclosure?Â
A non-judicial foreclosure is the fastest and cheapest way for a lender to foreclose on your property. It does not require taking you, the homeowner, to court and can be completed according to state statutes. In the case of non-judicial foreclosure, your lender repossesses your home to sell it and recover whatever debt is owed using what’s called a “power-of-sale” clause in the deed of trust. Not every state allows for this option but, if yours does, the lender will generally choose it to avoid any court costs.
What Is Judicial Foreclosure?
In states that require judicial foreclosure, your lender must file a lawsuit asking the court to issue an order to allow for the sale of the home. The lender must provide you with this letter. Whether you agree or not, you must respond to the letter, or the lender will automatically win the case and be allowed to put your home up for a foreclosure sale. When the house is sold, you are still required to pay the difference between what you still owe on the mortgage and the amount the house sold for.
Auctions are not like regular home sales and generally, the house is not sold for market value. This means that even if your house is in great shape and worth a lot more than what is left on your mortgage, you may still find yourself owing tens of thousands (if not hundreds of thousands) of dollars for a house you no longer own! This is called a deficiency judgment. It’s an expensive and long process for lenders to take to try and recoup their debt, which is why most prefer a non-judicial foreclosure.
How to Sell House Before Foreclosure in Oklahoma
Let’s break down a few ways you can sell your house, depending on your time frame and situation:
Hire A Real Estate Agent
The first step most Americans think of when selling a house or property is to reach out to a local real estate agent. But there are pros and cons to this option when you are in a difficult situation such as foreclosure. Sure, a good real estate agent can list your property on the MLS and help you get it ready for open houses and daily showings, but they do all of this work so that at the end of the closing process a large chunk of your money from the sale of your house goes to them in the form of the agent’s commission. When you’re already suffering from a mountain of debt and need every penny to pay back your lender, a commission of 4% to 6% plus the closing cost of your final sale price may be too hefty an amount to give up.
Plus, there’s the additional fear of not knowing when your house will actually close. Realtors may promise a lot but at the end of the day you still need to find the right buyer and wait 30+ days for a traditional close. For some homeowners who are facing auction and eviction, even waiting one month might be too long.
How Short Sale Works
If you owe more on your house than it’s worth, your realtor may require what is called a short sale. A short sale is necessary when you owe more on your house than the property is currently worth. For example: if you owe $200,000 on your house but in the current market it’s only worth $150,000, you must deal with a short sale. Though it may seem like a good option, it won’t be fast or easy.
To start off, you’ll first need to get your lender’s approval. To qualify for a short sale, you must prove financial hardship using documentation such as W-2s, medical bills, etc. For a situation such as loss of income, the lender will require that you prove that the loss of income is long-term and unlikely to turn around in your favor. If the lender approves the short sale, you will need to find a real estate agent and attorney who specializes in short sales, and they will still charge you the same amount as they would if you were selling your house with a traditional home sale.
If your foreclosure hasn’t dragged on for too long and you’ve maintained contact with your lender, they will likely approve the short sale. This allows them to avoid the time and expense of trying to foreclose on your property, while still recouping some of the loss from the missed mortgage payments. But for the regular American homeowner, the short sale will follow them for the next 5 to 7 years.
You may have sold the house and been able to pay off some of your debt, but the short sale can damage your credit the same as if you had declared bankruptcy. The credit unions include the delinquency on your mortgage(s) to your lenders and the short sale on their records, making it nearly impossible for previous homeowners to get a credit card, buy a car, or move into a new house or property for the same amount of time as a bankruptcy.
Loan Modification
Before considering selling your home to evade foreclosure, it’s wise to discuss potential loan modifications with your lender. These modifications might include extending your loan term, adjusting interest rates, deferring payments, or exploring other repayment options to assist you in managing your loan obligations. However, ensure you submit the loan modification request at least 45 days before the scheduled foreclosure auction to maximize its effectiveness in delaying eviction proceedings.
Sell My Home In Oklahoma If It’s In Foreclosure
Refinancing Before Foreclosure
Should your lender agree to the proposal, they could assist in refinancing your current mortgage before foreclosure becomes imminent. This process involves replacing your existing mortgage with a new loan, potentially offering a lower interest rate, extended term, and the option to cash out any equity you may have.
Sell Your House AS-IS to A Cash Buyer
If you’re under a strict time restraint to sell your house before a foreclosure progresses to auction and eviction, you do have options! You can try to sell your property with a real estate agent, work with your lender to complete a short sale, or – best of all – turn to a trusted and reliable cash investor to help you with your situation.
Some of the benefits of selling to a direct cash buyer include:
- A quick and pain-free closing process.
- Avoid paying any commissions or fees.
- You won’t have to worry about marketing your house and waiting for a buyer.
- No need to clean-up or complete any repairs!
When you sell your home as-is to a direct cash buyer, you not only can avoid losing your home to an auction, but you also may be able to sell the property for enough money to get out of financial debt. Moving on with your life without the burden of a monthly mortgage payment and debt hanging over your head is one of the best gifts you can give yourself!
Can You Stop Foreclosure in Oklahoma Once it Starts?
Pay Off Your Loan & Fees
You’ve found yourself in a difficult situation. Your debt is adding up while your finances remain the same. It’s time to get serious and look at ways to pay down your debt quickly. Do you have any items you can liquidate? Maybe you have friends or family who can gift you money or provide you with a loan until you get back on track. If you are serious about paying down your debt and stopping foreclosure, you may need a financial professional to help you restructure your budget. Use one of these solutions or combine them all to help climb that avalanche of debt and get back to living a life free of stress.
Declare Bankruptcy in
As a last resort, bankruptcy may help you stop the foreclosure of your home but it comes with a high cost. The bankruptcy process is complex and will require a lawyer who specializes in bankruptcy law. If the court approves your petition, you will be entered into a government-approved credit counseling program and the bankruptcy will be reported on your credit report for 7 years. A Bankruptcy affects all areas of your life, including when you try to purchase a car or apply for a credit card or bank account and can disqualify you from future rentals.
The Homeowner Affordability and Stability Plan (HASP)
If your debt is higher than your income, you may be eligible for the Homeowner Affordability & Stability Plan (HASP). HASP is a loan modification program targeted at borrowers who are at risk of foreclosure due to insufficient income. This government program was designed to help homeowners in the United States restructure their monthly payments to fit a limited budget. Apply for the program here to see if you qualify.
Sell Your House Fast to a Cash Buyer
Are you ready to sell your house but don’t have the time to wait 30+ days for a traditional close? Does a short sale seem like a fast way to ruin your credit? Prefer to pay off all your debt at once and get the bank off your back fast? A direct home buyer and cash investor might be exactly the solution you’ve been searching for! When you work with a trusted and reliable investor with a great reputation in your area, you’ll find a helpful company with cash on hand that is ready to purchase your home from your as-is. With a cash buyer, you can skip the lengthy process of foreclosure, eviction, and auction within a matter of days, and save your credit as well!
You may not get full market value for your house or property when you sell to a trusted cash investor, but the timeliness of a fast closing, and the lack of fees, required inspections, and commissions often balance this out at close. Best of all, because an investor can close fast, you can often close before the bank is able to auction off your property! This means you can sell the property for the amount that benefits you versus the pennies to the dollar price the bank will often try to sell your house for just to get it off the books.
Sell My Home In Oklahoma If It’s In Foreclosure
FAQs on Selling Your Home in Foreclosure
Can I sell my home in foreclosure without a real estate agent?
Yes, you can sell your home in foreclosure without a real estate agent, but Selling a home, especially under foreclosure conditions, involves complex negotiations and legal considerations. Given the circumstances, it might be best to work with an agent or an attorney who specializes in foreclosure which might cost you more money. Your other option would be to work with an investor like us who specializes in stopping foreclosure.
What happens if my home doesn’t sell before the foreclosure is completed?
If your home doesn’t sell before the foreclosure is completed, the lender will likely proceed with the foreclosure auction to recover the owed mortgage amount. If the property sells for less than the mortgage balance, you may still owe a deficiency balance unless the lender forgives that amount. If it sells for more, the surplus should be returned to you, after paying off the mortgage and any related legal costs.
How does foreclosure affect my taxes?
Foreclosure can have significant tax implications. If your lender forgives any part of your mortgage debt (as often happens in a short sale or if the foreclosure sale doesn’t cover the full mortgage amount), the IRS may consider the forgiven debt as taxable income. However, under certain conditions and for some periods, there have been exemptions under the Mortgage Forgiveness Debt Relief Act. It’s essential to consult with a tax advisor for the most current information and to understand your specific situation.
Can I buy another house after selling my home in foreclosure?
Yes, you can buy another house after selling your home in foreclosure, but it may take some time. Foreclosure can significantly lower your credit score and may remain on your credit report for up to seven years, affecting your ability to get approved for another mortgage. Lenders typically require a waiting period after foreclosure before you can qualify for a mortgage again, which can vary depending on the lender and the specific circumstances of your foreclosure.
What role does bankruptcy play in foreclosure?
Filing for bankruptcy can temporarily halt the foreclosure process, giving you time to catch up on missed payments or restructure your debts. Chapter 13 bankruptcy, in particular, allows you to keep your property and repay your debts over time. However, bankruptcy has long-term financial and legal consequences, so it should be considered carefully and discussed with a bankruptcy attorney.
How can negotiating with my lender help prevent foreclosure?
Negotiating with your lender can be a viable way to prevent foreclosure. Lenders may be willing to consider loan modifications, forbearance agreements, or short sale requests to avoid the lengthy and costly foreclosure process. Communication is key; reaching out to your lender as soon as you realize you might have trouble making payments can open the door to solutions that can prevent foreclosure.
We Buy Houses in Foreclosure & Pre-foreclosure in Oklahoma
Are you wondering if can I Sell My Home In Oklahoma If It’s In Foreclosure does the idea of finally walking away from a property without the storm cloud of foreclosure hanging over your head? Contact a real professional at Petit Home Solution-We Buy Houses to find out more and get a fair cash offer for your property today.