How to Sell your Las Vegas House in Pre-Foreclosure When Facing Foreclosure
With inflation and interest rates going up, spiraling costs, and an unpredictable job market, many Las Vegas homeowners cannot keep up with their mortgage payments. If that’s you, know that you’re not alone…many are facing those same pressures. Yes, it can be scary, but if you take control of the situation, you can create a better outcome. In this article, we’ll discuss how to sell your Las Vegas pre-foreclosure house fast so you can make the best of a difficult situation.
Don’t Walk Away with Nothing!
Nevada ranked second in the nation in foreclosure filings as of September 2022, according to data from ATTOM. That’s very unfortunate. However, something else is much more alarming. According to Rick Sharga, Executive Vice President of Market Intelligence at ATTOM, “Over 90% of borrowers in foreclosure have positive equity in their homes.” [i] That means they could sell these properties at a profit rather than risk losing everything to a foreclosure auction or lender repossession.
Put another way, you are far better off selling your property before foreclosure than letting the bank do it for you. You retain any profit instead of leaving it in the foreclosure sale. So instead of walking away with no money and damaged credit, you can walk away with cash in your pocket. That can help you make a fresh start. You also avoid further damage to your credit rating, which can make getting approved for a future mortgage more difficult.
The key? Act quickly before these options disappear.
Ideally, Sell While You are in Pre-Foreclosure
The foreclosure process officially begins when you receive a “breach letter,” a notice from your lender that they will initiate the foreclosure process. Also known as a NOD and/or NOS in Nevada. This initial period leading up to the breach letter is considered “pre-foreclosure.”
Due to recent law changes, you have more time than ever to determine your best course of action. Federal law now requires lenders to wait 120 days after a missed mortgage payment to take any action.[ii]
How to Sell your Las Vegas Home in Pre-Foreclosure
If you can no longer afford the home, usually, your best option is a sale. If you can sell before you go into foreclosure, you can avoid further damage to your credit. And the sooner you act, you also can help minimize foreclosure-related fees that can quickly add up once the bank’s lawyers are involved. These additional costs can take the form of:
- late payment penalties
- inspection fees
- the bank’s attorney fees and costs
- additional delinquent payments on your loan
Here again, time is your biggest ally. The sooner you start the sale process, the less it will usually cost you. That can mean more money in your pocket to make a fresh start.
Traditional Sales Can Take Significant Time
There’s one problem: a traditional home sale takes time. You have little control over the speed. With fewer qualified buyers in today’s high-interest rate climate, sales are taking more time sitting on the market. So waiting around for a buyer could leave you with a problem once foreclosure commences.
Instead, it’s far better to do what you can to preserve your home equity. Fortunately, you do have some options.
Selling Your Pre-foreclosure Las Vegas Home to a Cash Buyer
Cash buyers can often offer you better results when time is of the essence. Typically, selling your home to a cash buyer agency can happen within a short time frame. While a regular sale may take weeks or months, cash transactions can often close within 10-21 days.
But that’s not your only benefit. A cash buyer agency is willing to look past the property’s current state, saving you significant time and money.
- No need to clean or make repairs to the property
- No staging required
- No inconvenient house showings or open houses
- No appraisal required
- No closing costs
- No commission due to a realtor (which can consume your equity)
Especially by avoiding the agent’s commission, you can save thousands of dollars. The only fee you’ll likely end up with is moving costs. (Compare a cash sale with a traditional listing.)
Guess what? Gr8housebuyers® also has a “Local Moving Assistance” program, if you are relocating within the Las Vegas city limits!
Can You Still Sell Once You are in Foreclosure?
As noted, speed is essential. It’s far better to act before you receive that breach letter. Until that notice shows up, you have total flexibility to sell your property.
Fortunately, you still have options even if you’ve already received the breach letter. You’ll be dealing with pending action, so you will need to keep in touch with your lender. Again, working with a high quality cash buyer agency can help you do a fast deal to avoid accruing expenses and other complications.
But bottom line you can stop foreclosure action by paying the lender in full up until your home goes to foreclosure auction. Typically, a payment for the sum of the arrears will also stop or avoid foreclosure. But the longer you wait, the more pressure and stress you’ll likely feel and the fewer options you will have.
What is the Difference between Selling and Letting the Bank Foreclose?
By selling and settling up with the bank, you preserve your home equity, which is significant. Any money you can get out of the deal helps you make a fresh start.
But that’s not the only benefit, even if you have little or no equity, you can still sell it and make a profit and prevent foreclosure. Contact us to learn more about your options.
Another significant benefit is avoiding damage to your credit. A foreclosure will remain on your credit report for seven years. It may prevent you from being able to obtain financing several years in the future. And it may subject you to higher rates since lenders may perceive you as a risky borrower. [iii] By selling first, you can avoid harming your credit further.
By now, you’re probably aware of the most crucial factor here: time. While it’s easy to feel confused and procrastinate, taking action is your best bet. By acting now, not later, you can preserve your options and have the best chance of a positive outcome, making moving on in your life much easier.
Get Even More Options with Gr8HouseBuyers.com
At Gr8HouseBuyers.com, we’ve helped many people in similar situations get a fresh start. We offer two options. First, we can do a straight cash purchase so you can avoid foreclosure and move on with cash in hand. Second, we also can provide a creative solution for those looking for even more support. In these situations, we work with you on all of your home-related obligations (including utilities and home maintenance) off your shoulders. We also refer you to a reputable licensed agent that will help you find a new place during the process.
We do this by prioritizing your and your family’s selling situation. We’re known for providing excellent service and some of the highest and best cash offers in the Las Vegas area. And we understand your situation. Our founder started the firm because he watched his family lose their home due to divorce and job loss early in life as a child. He made it his mission to help families avoid this situation and create a better future.
Ready to sell your pre-foreclosure Las Vegas house fast?
Contact us today for a free, no-obligation quote on your house and to learn more about your options.
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