The Short Answer: Yes.
A common misconception among homeowners facing financial distress is that once the foreclosure process begins, the bank owns the house. This is false. In Florida, you remain the legal owner of the property right up until the moment it is sold at the county auction. Therefore, yes, you can sell your house before foreclosure.
Why Selling Might Be Your Best Strategy
If you cannot afford to reinstate your mortgage, allowing the house to go to auction is damaging. Here is why exploring a sale prior to foreclosure is advantageous:
- Protect Your Credit Score: A foreclosure remains on your credit report for seven years. Selling your house pays off the mortgage, avoiding the foreclosure on your record.
- Keep Your Equity: If you have lived in the home for several years, you likely have equity. By selling, you can pocket that equity rather than losing it to legal fees and the auction block.
How to Sell Quickly
The challenge of selling before foreclosure is the ticking clock. Traditional real estate sales can take 60 to 90 days. If your auction date is looming, you need speed.
As a licensed Realtor, Sean Tennant can help you evaluate the fastest path to closing. This might involve an aggressive, fast-tracked MLS listing, or presenting your property to a network of local cash investors who can bypass traditional bank financing. We help you compare the net outcomes of each option so you can choose the best path.
FAQ
What if I owe more than the house is worth?
In that case, you will need to pursue a Short Sale. This is where Sean negotiates with the lender to accept the sale proceeds as full payment. Short sales are complex and require strict lender approval.