Do you meet the Alabama pre-foreclosure home selling regulations?
If you are an Alabama homeowner facing foreclosure, you need to look into Alabama pre-foreclosure home selling regulations to see if you qualify to sell the home before the foreclosure process begins.
Pre-foreclosure is a viable solution for many homeowners facing foreclosure. If you meet the Alabama pre-foreclosure home sales regulations, then you can stave off foreclosure by selling your home.
Homeowners approved for pre-foreclosure sales can use the proceeds to pay off the mortgage lender. This eliminates the negative impact a foreclosure has on the homeowner's credit ranking. A foreclosure on your credit may prevent you from being approved for another home loan in the future or cause the lender to lend at a higher interest rate on your next loan.
To sell your home under Alabama pre-foreclosure home selling regulations, you must first receive a notice of default (NOD) by your lender. The NOD is the first step your lender makes in the foreclosure process. Typically under Alabama pre-foreclosure home sales regulations, you will have three to five months to get your home loan out of default or sell the home after you receive this notice.
If you cannot repay the loan to get out of default, you can list your home with a realtor who specializes with Alabama homes in pre-foreclosure.
It is also important to note that you must be in default for at least two monthly payments before you can sell your home under pre-foreclosure terms. While this is typically the case when the NOD is issued, some homeowners make a payment or two after they receive the NOD, which can negate the sale as a pre-foreclosure.
Regulations also require your home's appraised value to be at least 70 percent of the amount you still owe on the mortgage. The house must sell for at least 95 percent of its appraised value during the time specified in the NOD.
RealtyNow is an excellent resource to find realtors who are experienced in pre-foreclosure sales and who can help ensure that you meet the Alabama pre-foreclosure home-selling regulations prior to listing your home for sale.