Just because your home is in foreclosure doesn’t mean you’ve automatically lost it. You still have plenty of options before the auction date, such as selling it. Discover how this process works and what happens to your money after.
Yes, You Can Still Sell Your Home
You own the property until the day of the auction, which means you can still list your home for sale. The lender technically hasn’t taken it yet because the foreclosure process takes a while to finalize.
However, timing is very important. If you’re trying to sell your home, do it before the auction date. Once the lender sells your home, you won’t have the authority to sell it anymore. Doing it as early as possible helps you pay off the debt and have more control over the situation.
What Happens to the Money?
In most straightforward cases, the money you make from that purchase goes towards paying off your mortgage. Anything beyond that is considered profit and goes straight to you. So if you sell your home for $400,000 and the mortgage was $375,000, you’ll have $25,000 left over.
Unfortunately, not every case works this way. If your home is less than your mortgage, you may need to do a short sale. This process allows you to negotiate with the lender to have the remaining balance forgiven. These legal situations are more complex, so speaking to an experienced bankruptcy or foreclosure lawyer can help you with this process.
You Don’t Need To Sell Your Home Just Yet
While you can always sell your home, it’s not the only option. Our Westchester foreclosure defense attorneys can review your case’s details and help you take the next steps to protect your property. Please contact us at (914) 600-5502 to schedule a free consultation today.
