Pre-foreclosure home selling financing options prevent foreclosure and help potential buyers.
There are pre-foreclosure home selling financing options that can prevent foreclosure if you are unable to repay your home loan and someone else wants to buy your home. Avoiding foreclosure will help protect your credit and help you get another home loan when you need it.
While exploring the available financing options for selling homes in pre-foreclosure, you may find the following information helpful.
Loan Assumption Option
Depending on the terms of your loan, you may be able to find someone to assume it. This means a buyer takes over payments under the original terms set by you and your lender. The buyer must pass your lender’s credit screenings. The buyer may also be responsible for loan assumption fees and past due payments. If you find a buyer who agrees to these pre-foreclosure home selling financing options, and the terms of your original loan allow it, it is a better option than foreclosure.
Not all buyers will want to assume your home loan. The buyer may get a pre-approved loan from a lender of choice instead, which sets the amount of money that can be borrowed. Although the sale can take longer to close with this option, the end result is the same.
Home Equity Loan
If a buyer wants your home as an investment property, a home equity loan may be a good option to secure the necessary pre-foreclosure home sales financing. Most lenders have no problem giving a second mortgage or home equity loan to borrowers in good standing. Your buyer may start with a higher interest rate on the home equity loan, but after the purchase the home equity loan terms can be re-evaluated using the home as collateral.
Millions of homeowners like you are facing home foreclosure today. The financing options for selling homes in pre-foreclosure can help you avoid foreclosure and the potential damage to your credit.
Visit RealtyNow real estate agents with information about pre-foreclosure home selling financing options for your potential buyers.