Want to sell a Foreclosure house? Is it possible in Jacksonville, FL?
Yes, one can sell the foreclosed house in Jacksonville, Florida, but only if they have signed a house offer. Make sure to have an offer before the date of the auction.
Asking for a cash offer is the easiest way to begin. If you are willing to sell a house in foreclosure, there are various things you must know about.
Foreclosure House Selling In Jacksonville, FL
Undoubtedly, foreclosure can be very stressful. This situation happens especially with those suffering from financial crises due to the owner’s death, selling a house during a divorce, being jobless or medical bills. This time is very hard, and most people think they can’t do anything to escape it.
But it’s not like that; you can sell your house in Jacksonville before the auction starts. Although you can sell the foreclosure house in Jacksonville, the bank and the lender must be informed about selling.
Usually, banks of most states get ready to make legitimate offers.
Still, talking to your lender would help because each state has its rules and regulations. Once the bank gets ready, arrange the closing immediately and offer great cash.
It would be best to never let the bank sell your foreclosure house in Jacksonville. Instead, sell it yourself before the auction. This is because there are plenty of benefits to selling a house yourself. But remember, you will not get the market value for the structure. However, read the complete guide to know more about selling a foreclosure house in Jacksonville.
Understanding of Foreclosure
Foreclosure is when a mortgage company takes ownership of the house with the help of a legal process. In simple words, banks or a lender repossesses the house.
Foreclosing on a home usually happens when an owner fails to repay the loan. After the foreclosure, usually, the owners sell their property to repay the mortgage.
Some impacts of foreclosure include:
- Home eviction – The biggest thing a person loses in foreclosure is their house. Usually, the value of an entire house is used to pay the mortgage, which means you have to start again from scratch.
- Decrease in credit score – When a bank or Len foreclosure your property, it significantly decreases your credit score. Appropriately, you cannot take credit, a new house, or a job again.
- Deficiency balance – Sometimes, the value of foreclosure property is not enough to repay the entire mortgage amount; therefore, you will be left with some deficiency balance. Remember, the bank can take legal action again to collect the remaining payment.
Foreclosure Process Timeline in Jacksonville, FL
If you want to know the entire process of foreclosure house in Jacksonville, you must know about the timeless processes. According to Forbes, the foreclosure process is done in six phases each person should know about.
Phase 1 - First Time Missed Payment
When the homeowner fails to pay the payment for the first time, the lender gives them a 15 days grace period. The owners are penalized even if they do not pay the payment within the grace period. Suppose you are very rigid with the mortgage contract.
In that case, you can also inform the credit bureaus about the payment delay so that you will not be charged an additional penalty.
Phase 2 - Default
Missing one or two payments can be quite common. Still, if the owner misses them continuously, they fall under the default category. In most cases, an owner is considered Default when they fail to pay after 30 days of the notice.
Once the owner is titled Default, the lender will take further steps based on the homeowners’ foreclosure process type. Some homeowners have non-judicial-hale others have judicial.
In the non-judicial foreclosure process, lenders can foreclose and sell the property without notice. While on the other hand, in the judicial process, the lender files the case in the state’s court because they need legal notice to sell the property.
Phase 3 - Foreclosure Lawsuit or Default Notice
In the case of non-judicial foreclosure type, the house owner will get the legal notice NOD (Notice of Default), which tells how much they are liable to pay. This includes all the charges, including:
- Foreclosure fees
- Late fees
- Amount of mortgage
Usually, in most cases, the owner gets 90 days to pay back the entire amount. However, if they agree, you can ask a lender to create a new payment contract. Otherwise, they have the power to take ownership of your house.
However, in the case of judicial foreclosing, a lender files a foreclosure Lawsuit in the court. If the owner does not want the case to go in favor of the lender, then they must reply to the notice as soon as possible. Once the owner replies to the notice, they will get time to consult a Jacksonville attorney to find a solution.
Phase 4 - Pre-Foreclosure
Pre-foreclosure is a time between the NOD Issuance and the house auction. This time is crucial because, during this time, the owner can repay the amount or talk to the lender and find a solution for the situation.
However, if you need more money to repay the mortgage or the bank is not ready for the new repayment contract, the only option is to sell the property. Selling land yourself is the most recommended option because it has numerous advantages.
Phase 5 - Sale Notice
When the debtor fails to pay or make a new contract doing the pre-foreclosure period, the lender publishes the Notice of Sale in the local newspapers. The time for the NOS to the auction is usually around 2 to 3 months, but most people usually do it in less time.
Phase 6 - Home Eviction
Once the house is foreclosed, the owners will get the order to leave the house within a certain period. Usually, they only get a few days to find a new house. First, higher authorities will ask them to leave the house, but they will take their belongings if they do not leave or refuse.
Although one can easily sell their foreclosure house, it differs from selling an ordinary property. This is because the owner has a time limitation, considering the bank is waiting to get paid.
Selling a house before action has various benefits, including:
No Decrease in Credit Score
The main benefits of selling the house yourself are that your credit score will not be affected. Generally, when a house gets foreclosed, it stays for seven years on credit score. You must work hard to take feature loans, even if you take money or medical procedures.
Buy New Property Soon
When a property forecloses, you will not get a mortgage for your new house. This means you cannot make a new house on loan. But if you sell the house yourself, you can avoid this and purchase a new property very soon.
No Deficiency Balance
If more than the house’s value got in an auction, it is needed to replay the entire mortgage, including all other fees. The bank and lender can ask you to repay the deficiency balance. But on the other hand, if you sell your home during the pre-foreclosure period, you will get enough money to repay the mortgage. To get good value, hire a reputed real estate agent.
However, if you are facing issues of foreclosure, then the decision must be taken with the consent of everyone. Put, include the house’s co-owner if you have one. The mutual understanding of both the owner and the co-owner must make the decision to sell a house.
Also, make sure you have realistic expectations while selling a house. Remember, your main goal is to repay the mortgage. But if the value of your house in Jacksonville is less than the amount you have to pay, you will even face problems even after selling the house. In such a situation, a short sale is the most effective option. We will discuss this term later in the article, so keep reading.
How Many Days Usually Does the Owner Has Before Losing It In Action In Jacksonville, FL?
The exact time you will be having for selling your house in Jacksonville before foreclosure depends on various factors such as:
- Foreclosure type (whether it is non-judicial or judicial)
- A lender or loan servicer
- Rules and regulations of Jacksonville
In most cases, the foreclosure process takes six months to one year. You can sell your house during this period. Selling the house in the open market before the auction has a higher chance of getting an amazing deal. You will probably get your house’s real value, which is impossible in the auction.
How Much Time Does It Take To Sell A Foreclosure House In Jacksonville, FL?
There is no fixed time for selling a house in Jacksonville. It is almost similar to the time needed to sell a specific property. If the real estate market in Jacksonville is hot, selling your property will take no time; you can easily sell it in a few months.
But remember, the real estate market is not the only factor affecting the selling timing. Various other factors affect the selling time of foreclosure property in Jacksonville.
Some of the most common are:
- Real-estate agent, you are hiring
- Property’s state
- The neighborhood
While selling a house in Jacksonville, one can follow the falling steps:
- Identify the real and fair price for the home
- Finalize the price
- List on the market for sale
- Negotiate the offer
- Make the deal if profitable
But there is a difference while selling a foreclosure house. It would help to tell a lender that you are selling the property. Also, you have to show him the offers you are getting agree on. This shows the lender that you are not delaying the foreclosure process.
Step-By-Step Guide to selling a Foreclosure House in Jacksonville, FL
After knowing that you can avoid foreclosure by selling the house before the auction, investing your energy and time in selling a house makes more sense.
As discussed above, the process f selling a foreclosure house is similar to the specific property.
Therefore it will be very easy for you if you have ever sold a house in Jacksonville. You must know the following things while selling a house before it gets foreclosed.
Find the Fair Price for the Property
Having an appraisal is the best way to find the actual price of your house in Jacksonville.
But you need help finding the appraiser within the giver’s time limit. In that case, you are suggested to use real-set tools or hire a professional agent who is well-versed and experienced enough in the financial aspects of selling a house.
Decide a Final Price
The next step is to decide on the final pricing for the house, depending o the market value. Make sure setting the price of a foreclosure house is more challenging than a typical house; therefore, properly research and finalize the fair price. Try to get a price that is enough to repay the mortgage, late fees, interest, and other expenses. Also, there are various other expenses associated, such as:
- Staging
- House repairs
- Agent commission
- Closing fees
An owner should always ask for a fair and realistic price and sell the house at a bit loss instead of asking for too high a price and not finding any customers.
Inform the Lender
Although it is difficult to talk to a lender about the foreclosure, you still have to inform them that you are selling the property and have started finding a potential buyer. Usually, the lenders allow the owners to sell the property before the auction because it makes their process very easy.
Even the government of some states does not allow the lender to foreclose the house if the owner has a legitimate offer for them. The homeowners get 30 days’ grace to sell their property before the auction. However, you must check the local laws of Jacksonville to see whether it is all for you.
Start Finding an Agent
After notifying the lender, start finding a customer to purchase your property. Either you can hire a professional real estate agent, or you can find them yourself.
We suggest you hire a professional agent or work with a house cash buyer because you need more time to sell a house, which makes the selling process even more complex. Also, working with cash buyers will eliminate all the taxes on selling the house.
Negotiate an Offer
When you are facing the problem of foreclosure, there is little negotiation. Even you have to sell your house at a loss because you are time bound, and you have to give your property in action if you cannot sell yourself on time.
We recommend you approach the cash buyers who buy the homes for cash and fast. Get various offers from the trusted home buyers of Jacksonville, and compare them based on various factors, including:
- As-is sale
- Closing cost
- Pricing
- No fees
Let the Lender Know About Buyer
Once you have selected a potential buyer and agreed on the cash offer, contact the lender immediately and let them know about the deal so that you can eliminate the foreclosure. Mostly, foreclosure is eliminated if the lender has a legitimate offer.
Usually, the lender will allow you to sell the property if you ensure the amount is enough to pay the entire mortgage, including all other fees. This is because the lender only wants their money back without hassle.
Close the Deal
It is recommended to avoid foreclosure by making a short sale in Jacksonville. As you have already noticed, the lender about you is selling the house; therefore, you can make a deal with a home buyer and later inform the lender about the deal being done. The house is sold, and pays what you have to pay.
Sometimes, an owner gets more price than he has to pay the lender, so you can keep that ash and go away. However, it happens very rarely.
What Challenges Does the Seller Face While Selling a Foreclosure House
While selling foreclosed homes in Jacksonville, various factors must be considered.
This makes tee process of selling easy for some people a nod hard for others. Selling a house in foreclosure is equally hard as selling a fire-damaged house.
Therefore, before selling a house, you must know about the challenges you may face while selling a house.
Death of the Owner
If you own an inherited condemned property that is getting foreclosed, you may have to face various challenges. However, the project’s nuances will depend on your city’s probate process. You can contact multiple attorneys to learn about the rules and regulations of Jacksonville. Also, they will help you in both probate and foreclosure.
Bounded By the Litigation
If your foreclosure house is tied to any litigation, such as bankruptcy, you will face difficulty selling the house. Unfortunately, the duration of the bankruptcy process is almost impossible to predict. Therefore you cannot precede the sale.
Selling Alone
Always sell the foreclosure house with the help of a professional real estate agent. Only try to sell it yourself once you are a professional agent. Before your land gets sold, there are various hoops the property must face, and handling all the pressure alone can be very challenging and overwhelming. One can consider doing the following things if one wants to sell the house fast in Jacksonville, FL.
- Leave all the repairs and renovation.
- Avoid closing cost
- Work with a professional real estate agent with years of experience and knowledge.
What Other Options Does A Foreclosure House Owner Have Other Than Selling In Jacksonville, FL?
Are you suffering from financial hardships but do not want to sell a foreclosure House? If yes, then don’t worry. Other options include refinancing, loan modification, and short sale.
Generally, people choose to sell their house in the last when no other option is working for them. Before you sell your house, know about these five options discussed below.
Pay the Missed and Delayed Payments
Paying the all-due amount is the best way to come out of the default category. You have to pay the entire amount including:
- Mortgage amount
- Late fees
- Interest
- Penalties
If you can arrange the money without selling the house, you can easily escape this hassle in no time. Also, it will not affect your credit score, so you can take future loans easily.
Modification of Loan
Before selling a foreclosure house to avoid the auction in Jacksonville, FL, consider talking to a lender about loan modification. The lender can do various things to help you; they can increase the timing for repayment, decrease the rate, or provide you with additional offers to repay the loan.
Undoubtedly, doing this will delay the eviction. But remember, submitting the modification form before 45 days of the auction date is essential. If you do not, your form will not be accepted.
Refinancing
If you ask your lender, they can replace your existing loan with the new one so you won’t have to foreclose your prompt. In simple words, the lender will provide you with another one to repay the existing loan.
But the refinancing must be done before the auction; otherwise, you can’t do anything.
The conditions of the new loan will depend on the lender; you can expect changes in the existing loan plan so that you can pay it easily. Also, there are chances of getting a new loan at less interest rate for a longer period.
Deed in Lieu
Getting a deed in Louie is another great option that homeowners can consider. It is a process of transferring the ownership of the property to the lender. Bu doing this, you can save your credit score, as your property is not getting foreclosed. Although you don’t have to make additional payments in this process, you will lose your property.
Short Sale
When a homeowner sells their house for less value than they own to the lender, considered a short sale. Usually, this is considered when the property’s value is much lesser than the amount you owe to the lender.
However, it will not save your credit score. It will also impact the score, but smaller as a foreclosure. If you are also willing to short-sale your property in Jacksonville, FL, fix a meeting with a professional Jacksonville attorney who knows everything about this process. We always suggest you consider selling your home before foreclosure.
Frequently Asked Questions
What is the foreclosure rate in Jacksonville, FL?
With a 10.9 percent foreclosure rate, Jacksonville is ranked 18th overall, but 14 other Florida cities had higher rates.
How long can a house be in foreclosure in Florida?
In Florida, the time limit for a foreclosure case is five years from the date of Default, the same as the statute of limitations.
What is the foreclosure process in Florida?
The foreclosure process in Florida begins when the lender files a complaint with the court and serves it to the borrower, along with a summons. The property will be sold to settle the debt if the court rules in favor of the lender and enters a judgment of foreclosure. It should be noted that judicial foreclosures in Florida typically take considerable time.
Is It Possible To Sell A Property In Pre Foreclosure In Jacksonville, FL?
Yes, one can sell their foreclosure property during the period of pre-foreclosure. Even this is the most suggested and best time to sell the property in Jacksonville. This is because the pre-foreclosure period has some months for the auction, giving a homeowner enough time to sell the property.
This means you have enough time to negotiate, so you won't be pressured to finalize the deal below the asking price. However, a short sale is the best option if your property's value is far lower than the money you owe to the lender.
Ending Words
Until now, no law r rule in any country stops an owner from selling their foreclosure property. However, due to the short deadline, selling a foreclosure house is very complex compared to selling an ordinary property. Remember to take immediate action after getting NOD (notice of Default).
Immediately hire a professional real estate agent in Jacksonville. Doing this will increase your chances of a good cash offer according to the market value. Do not wait for the auction date to come close. However, if you can still find a good buyer for buying your property, you can conect us at right here.
Till now, we helped various owners to avoid foreclosure just the night before the auction. We provide instant cash for the foreclosure property the owner is willing to sell. To know more details, you can call us at (904) 906-9024.