The problem with waiting to sell your home

Real Estate Agent with Fathom Realty 0583209

If you are in default on your mortgage or at risk of going into default, the sooner you reach out for assistance the better.

Many home owners just simply wait until it is too late to ask for help many times because they don't know they have options to short sale and at that point it is near impossible to do anything.

At the first sign of trouble a home owner should consult with a Realtor and visit with their lender to explore their options to sell their home.

Even if trouble never happens, at least you are armed with knowledge should that occur.  A job loss, an illness, divorce or reduction in pay can throw a home owner into a fast tail spin in a short period of time.

In Texas, most lenders have about a 90 day tolerance for delinquency and then they get very serious very fast about recovering their collateral, your home.

It takes a 20 day demand for payment of the amount your are behind and then they are required to give you 21 days notice before conducting a foreclosure sale against your home if you fail to bring your loan current.  

Once a mortgage falls behind, almost all of the time a payment for the full amount due is required. Some home owners can successfully modify their home loans if there is a temporary situation.

Warning, you should not agree to an unreasonable repayment plan, ie: your regular payment is $1,200.00 per month, your lender agrees to freeze foreclosure action if you repay them $1,800.00, usually they allow 6-12 months to make up the defaulted payments, but you know at the time they make the offer that $1,800.00 per month is not realistic with your expenses.  If you sign a repayment agreement and then default on the agreement, your home almost immediately goes back into foreclosure.

It is recommended that you be realistic when accepting a repayment plan.  Otherwise you are just prolonging your distress.

If you can manage it for 60-90 days, that may allow you enough time to get your home on the market and delay foreclosure activity.  If you decide to go this route, it is recommended you contact a short sale specialist right away and begin preparing your home to be offered for sale.  It is a good idea to purge, clean and do any repairs that you can to improve the sales price your home will bring from a buyer.

My best recommendations are, don't wait to consult a Realtor who is a Short Sale Specialist, don't vacate your home and work to keep the mortgage current while you are in the process of selling your home.  Time will sneak up and take you right off of your feet.

If you have a home in Ellis County and need to consult, call, email or text me.  Many home owners are embarrased and that is why they wait to reach out, but many times it is too late. Don't put yourself in that position, get help now with the short sale of your home.  Your information is confidential, there is no judging, bad things happen and we just work to help in the best way we possibly can.  There is also no obligation or charge for our services, we are paid when your home is sold out of the proceeds at closing.  You will not write any checks for services.

We service Red Oak, Tx, Waxahachie, Tx, Midlothians, Tx and surrounding cities including DeSoto, Lancaster, Cedar Hill, Mansfield and Grand Prairie.

We also work with tradional sellers with equity that are not in a distressed situation as well as home buyers.

Comments (3)

Dan Hopper
Dan Hopper - Gold Way RE - Westminster, CO
Denver Broker / Real Estate Advocate

Sandy / Ashley, good reminder to the public about "waiting" to take pro-active action to avoid foreclosure of their home.  By the time, they are behind 60 days, it's time to get corrective action in place.

Apr 12, 2014 12:14 AM
Tracy Oliva
West USA Realty - Arizona - Fountain Hills, AZ
The Oliva Team Arizona Agents

Good Morning and this is some good Info for all in the business,  keep up the good work and good luck with your sales.  E

Apr 12, 2014 12:14 AM
Sandy Wickware
Fathom Realty - Red Oak, TX
Realtor®, Broker Associate

Good morning Dan, Ed and Tracy,

Texas is so quick and so many home owners wait until the last moment that it is difficult to help them.  We so badly want to make everyone aware that even if it turns out ok, the more they know and the earlier they take action the better their situation will be.  We have a big problem with home owners contacting us after they have moved out, so we really want to make sure they stay in their homes.

Apr 12, 2014 12:19 AM