If you have been through the mortgage process in the last several years, then you know how tedious and time-consuming a process it can be. An increase in banking regulations, federal regulations and other stipulations has made buying a home more complicated than in years’ past. Once the documents have been signed and the key put in a homeowner’s hand, many think they have made it. However, many homeowners can hit a snag if they are unable to pay their mortgage payments.
This can happen to anyone at any stage of their mortgage payment process. So when a homeowner starts to get in over their head, they may think about selling their house. If you are in pre-foreclosure, you may be wondering if it’s possible to put your house on the market.
The answer is usually, yes. However, the process of selling the home can be different for homeowners selling their house who are not in pre-foreclosure. When putting your house on the market in the pre-foreclosure process, the bank will have more say, often in terms of accepting offers, and setting a sale price. If your house sells for less than what is owed on the mortgage, it’s considered a short sale.
For you to be forgiven for the remaining debt owed on the house, the bank must agree to forgive the remaining balance owed. The bank may or may not approve the forgiveness of the balance on the house. If they do not, you may still be responsible for the amount owed remaining on the home mortgage, after the short sale has been approved. Residential real estate sale in pre-foreclosure is possible, with stipulations.