I have been told, by an attorney, that an individual can sell their home, as long as it is closed prior to the Foreclosure Auction date posted on the Foreclosure notice? An individual who is being foreclosed on has to be given 3 - 4 months prior notice from their lender.
It would be most advantageous to most consumers to put that home on the market at a price lower than price of all other comparable homes currently on the market in their neighborhood and stipulate the home must close within 30 days!
Ex: You owe $100,000 on your mortgage. Homes like yours have been selling for $140,000 in your neighborhood. In order to cover your closing costs and a 5% real estate commission, you may need to get around $108,000 for the home. (Tell your Real Estate agent what you need to get YOUR PART!). Put the house on the market for around $115,000.
Make it a "Real Deal" for someone and you will get it sold fast!
This will help save your credit and keep a "Foreclosure" from showing up on your credit report, although the late payments will still show up!
Worst case scenario, even if you declare bankruptcy, I have been getting people into another home within 2 - 3 years, depending on the type of loan. The bankruptcy wipes out all other debits at the same time, such as credit card debit. A Foreclosure would not wipe out other debits, if you had them. If you are lucky, you might even qualify for a "First Time Homebuyer Tax Credit" if it had been 3 yrs since you owned a home.
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