fbpx

Blog

Selling a Home in Pre-Foreclosure in Raleigh, NC

When you hit some bumps in life, it can be devastating. After the hard work and wonderful feeling of buying your home in Raleigh, to find your home in pre-foreclosure is a hard place to be. The good news is that pre-foreclosure is not a dire situation and there’s still time to make a change. There’s a straight line to a positive outcome if you take proactive steps.

Getting market price for distressed properties from real estate investors upon reaching pre foreclosure with a lending institution isn’t out of the question.

What is a pre-foreclosure letter

When you miss several mortgage payments, you home can fall into pre-foreclosure. You’ll know that this has happened because your mortgage lender will send you a letter in the mail notifying you that you’ve entered into pre-foreclosure. In all likelihood, you had an idea that this was happening well before the official notice comes in the mail. 

Though this is definitely a serious situation, it’s not the point of no return. Not by a long shot. You have lots of options when that letter comes in the mail before you lose your house. If this is your situation, step back and take a deep breath before you get emotionally involved. It’s a scary situation, but this notice is still early in the process. Above all, don’t panic!

A property owner who is behind because of unpaid taxes won’t be formally foreclosed on for a while. Making backdated payments or working out monthly installments can prevent a home from getting to the sheriff’s sale or public auction. The foreclosure process begins with delinquent payments, but being served with a letter is not the end of the process.

Just the first step in North Carolina

Pre-foreclosure is the first phase of the long and complex legal process that sometimes ends in a piece of property being taken back by the bank. Whether a family is ultimately evicted from their home in Raleigh depends on a lot of things happening in the interim. 

For homeowners in Raleigh who are behind on mortgage payments, the first step in the foreclosure process happens when the mortgage holder files a notice of default with the Wake County Clerk of Court. 

There are set amount of delinquent payments that a homeowner can fall behind with before they get a notice of default. This is set out in the terms of the mortgage. If you’re a Raleigh homeowner who’s in a tough spot, it’s important for you to look over your mortgage paperwork and find out what the terms of the home loan are. 

Judicial foreclosure in Raleigh, NC

brick house with trees in Raleigh, North Carolina

Image by Kathleen Culbertson via Unsplash

Before a mortgage holder can move out of the pre-foreclosure stage of the process, they have to go in front of a judge to get approval. The Wake County judicial system doesn’t move swiftly, so that leaves homeowners in Raleigh some time to pull the loan out of default before the house goes into foreclosure

There are four kids of foreclosure in North Carolina:

– Power of sale foreclosure

– Foreclosure by civil action

Tax foreclosure

– Homeowners association/condo owner’s association foreclosure

All four of these kinds of foreclosure in Raleigh, NC are handled in the court system. The last two involve a homeowner being behind on either taxes or fees associated with their home. The first two are done by a mortgage company or bank lender. The North Carolina General Statues make provisions for all four of these foreclosure processes in North Carolina. 

What is a short sale?

Short sale sign in Raleigh, NC

Image by Justin Lim via Unsplash

In all four foreclosure situations in North Carolina, the homeowner has the power to negotiate a  short sale of the home or to go through with a traditional real estate sale or an all cash sale.

A short sale is when the home is sold for less than the amount owed on the mortgage. Though this is a preferable outcome to a full on foreclosure, a short sale often means that the homeowner will still ower money to the bank. Sometimes the difference in the price of the sale and the amount still due on the mortgage is forgiven by the bank, but not always. 

Often, a short sale situation involves a homeowner selling to an investor or a home buying company. In any case, the mortgage lender has to approve the sale of the home under these terms. Homeowners in Raleigh, NC facing foreclosure will need to contact their lender to negotiate these terms. 

In many cases, the mortgage holder will agree to a short sale if the homeowner agrees to a default judgement. This pulls the house out of foreclosure, but the homeowner will still have to make payments on the amount due to the lender. 

Pros and cons of a short sale

The benefit of a short sale is that it keeps foreclosure off of the credit rating of the homeowner. There’s no massive hit to the credit rating either, though there is still a detrimental mark placed in the credit file. A foreclosure stays on a person’s credit report for seven years. 

 It can take up to a year for the whole short sale process to go through, and it takes a lot of paperwork. 

 Fair, all cash offers for houses in foreclosure can also be part short sales. Pre foreclosure means that the mortgage loan is behind, but there’s still lots of time before the final foreclosure sale. The lending institution might still be able to work with a home owner to create a plan for affordable payments for people in financial distress. Short sales are not the preference for most lenders. They’d prefer backdated payments for a home in default status.

Banks don’t like foreclosure

One wonderful piece of news for Raleigh homeowners facing foreclosure is that banks don’t want to repossess your house. When a loan goes underwater and the bank has to sell the property, they lose money. The best outcome for the homeowner and the bank is to come to an agreement to keep you in your house. 

You can work with the bank to arrange a short sale. This allows you to get out with your home equity and them to avoid the costs of foreclosure. Whatever they can do to prevent you losing your house, within reason, a mortgage lender will do. 

Pre foreclosed properties are a top priority for banks. There are also government programs that can help pull a pre-foreclosure property out of the negative.

Options for homeowners in pre-foreclosure

front door of a pre-foreclosed home in Raleigh, NC

Image by Jaye Hach via Unsplash

Lenders are generally willing to work with you and negotiate to keep your house out of foreclosure. 

Though the notice of default means that the wheels are turning towards a foreclosure, there’s still plenty of time to get back on track with your home loan. You might be able to catch up payments in a lump sum or to grade them out over time. There’s even the option to potentially refinance your Raleigh house in foreclosure. For that, you might need to get a cosigner or agree to a higher interest rate. 

If you’ve gone into default because of some life circumstance like a divorce, a job loss, or the death of a family member, you should talk to the mortgage company. Life circumstances happen to everyone, and these are usually temporary situations. You can negotiate a loan modification, make backdated mortgage payments, or arrange for a short sale of your house. 

During the COVID-19 pandemic, there were lots of provisions put in place to help homeowners stay out of foreclosure. For government-backed mortgages, evictions and foreclosure proceedings were halted. Though the crisis is past now, there are still government agencies that can help homeowners stay out of foreclosure. 

Is it too late to sell your home in Raleigh?

Selling a pre-foreclosure home in Raleigh is possible if you step into action. All the way up to the final foreclosure auction of the home, it’s possible to strike a last minute real estate sale of the property in Raleigh. 

Mortgage borrowers can connect with prospective buyers to get market value for their home. Short sales are sometimes the only options if you’ve missed payments on your home. Real estate-owned properties are a common, if unfortunate reality in Raleigh, NC.

To avoid foreclosure, either work with a real estate agent or reach out to a home buying company. As soon as you’re behind in monthly payments, it affects your credit history. The outstanding loan balance might seem like a huge hurdle to overcome, but paying down the mortgage balance with a quick, all cash sale can save your pre foreclosure property.

Keep in mind that once the lending bank reaches out to the county recorder’s office, that’s only the beginning. As a property owner, you have a lot of leeway to save your credit score. A foreclosed property isn’t out of the hands of the owner because a default notice is sent out.

Cash home buyers can help Raleigh homeowners in foreclosure to pull out of even the worst situation. 

Tips for Selling Your House Fast in Raleigh, NC

The real estate market in the Triangle has been moving higher for decades, but in the last few years, it’s even easier to sell your house fast in Raleigh, NC. Thanks to the recent housing boom across the country, homes stay on the market for less than thirty days on average. The tightness of the market in Raleigh creates a seller’s market, but you still need to know what you’re doing in order to get the best price for your home. 

Even in this seller’s market, you’ll still need some insider tips if you want to sell your home fast for cash.  To sell your house fast in Raleigh, NC for a fair cash price with a quick closing date, empower yourself with knowledge!

Know your property

What kind of Raleigh, NC property are you trying to sell? The difference between a home that sells quickly and one that takes its time has everything to do with a smart seller who is read to sell their house fast. A real estate agent or real estate investors will often try to leverage their experience to get you to sell your Raleigh house with them, but you can get more money in Wake County if you find an honest price yourself.

The condition of your property, your motivation for selling it, and the location and size of your Raleigh property are all factors that will affect your selling method. Here are some examples of homes that would require different strategies for sale.

  • Abandoned property in Hillsboro
  • Home in need of repair in Zebulon
  • Inherited home in Cary
  • Foreclosed house in Wake Forest
  • Condo in Downtown Raleigh

Unique properties in Raleigh that are surrounded by new residential developments could have special conditions. If you want to sell your house after divorce in the Triangle, you might also have different parameters than someone who’s selling an inherited home. Anyone who wants to buy houses will do some kind of walkthrough for validation purposes before they buy houses in Raleigh.

Know the area around Raleigh, NC

Even if you have a vacant house or a home with bad rental tenants, there are still real estate solutions for property owners in Raleigh, North Carolina, and the surrounding areas. Buyers in Johnston County, Franklin County, and Durham County are all interested in Raleigh houses. The NC house market is not captive to just the immediate area around Raleigh, NC.

If your property address is further afield than the Triangle, you can still complete a short property information form and then have a home visit for validation purposes to sell your house quickly. Unwanted property for any reason can be sold without an agent’s expensive fees. A fair all cash offer from a company who wants to buy houses in Raleigh, NC often doesn’t involve any fees at all.

Think about your situation in the context of the Triangle market. Though your circumstances might seem familiar, competing sellers will have different situations. Factor in what else potential homebuyers in Raleigh are looking at.  Real estate solutions are available for helping homeowners avoid the time-consuming expense of traditional sales.

Know your home selling goals

Depending on your situation, you might just want to sell your house fast for cash or you might want to take your time with an agent. If your goal is to buy another house in Raleigh and move in, then you’ll need to have a timeline that accommodates that. 

Think about your financial goals too. Do you want to make the most profit possible, or are you ok with making less money in exchange for a more hands off process? Is your goal to move out fast or to transition in a few months?

The process of selling a home is not the same for everyone. Your goals might be better served with a we buy houses company or an independent cash buyer if you don’t want to make home repairs before sale. If you need to take your time and have a relationship with an experienced real estate agent, then that might be the way to go. All that hassle with making repairs isn’t necessary to sell your Raleigh house. Your house can be left unchanged and you can get cash quickly if you take control of the selling process.

A burdensome rental property can still qualify for traditional bank financing. Cash buyers are often willing to pay closing costs if you’ll sell your house fast Raleigh. Unlike selling to an investment firm, burdensome houses can get an honest price and a no obligation cash offer from cash buyers. Property simply doesn’t have to sit there. If you’re facing a difficult situation with a family member, sometimes you need to sell quickly. A no-hassle offer is a way of helping homeowners.

Sit down and write out your goals for the sale of your home before you decide on a strategy to sell your house in Raleigh. This will make it easier for you all along the way. 

Know the value of your Raleigh home

Fayetteville Street Condos in Raleigh, NC

Image by David Mirabal via Unsplash

How much is your Raleigh home worth? It’s worth as much as a buyer will pay for it. 

Fluctuations in the Raleigh real estate market change the price of homes constantly. If you sell your North Carolina home today it will go for one price. If you sell your Raleigh home in six months it will go for a different price. You can’t know the exact price ahead of time, but you can get a range. Look at how much comparable homes have sold for recently in your area. 

It can be tempting to look at websites like Zillow and Redfin for estimates of Raleigh home prices, but those are wildly changeable. Don’t look at the projections on websites. Instead, look for the actual sale prices of properties within the last six months. That’s a much more accurate way to find the market value of your home. 

“Comparative analysis” is the method that professionals use to decide the list price of a home. Through this process, they look at sale prices of similar properties. Projections from real estate sites are not generally accurate. You can always talk to an agent to list your home and do this for you. You’ll pay a hefty commission, but it does take the legwork off your plate. 

A cash buyer or a we buy houses company is likely going to make you an offer at the low end of the price range that you determine for your house. That’s not just because they’re looking for a deal. Cash homebuyers generally buy homes “as-is”. That means you don’t have to make repairs to your Raleigh home. The lower price is also a trade off for fewer steps and a faster home sale.

Know how much you want to put into your home sale

Unwanted real estate property in Raleigh, NC

Image by Spacejoy via Unsplash

Do you want to make repairs to your Raleigh home, or do you want to sell the home “as-is”? Maybe you’d like to work with a Raleigh home stager? Do you want to freshen the interior and exterior? Home tours and open houses in the Triangle can get you a higher price for your house, but the trade off is that you’ll put more time and money into the process. 

It’s notable here that you must always, always let a potential buyer know of any issues with the house. If there’s been a flood in the basement every spring due to North Carolina rainfall, let them know. Maybe the HVAC started acting up in the Piedmont heatwave last August. Don’t hide things from a buyer, even if you’re selling your home as-is.

Property information for both traditional homes and rental properties must be communicated. Your property can still be left unchanged if you need to sell quickly. An all-cash offer for an as-is house can be reasonable no matter what its condition is.

Just as you’d like honesty and transparency in the process, so do buyers. Disclosure laws in North Carolina preserve the right of homebuyers to know that’s going on with a house before purchase. It’s much better just to be honest if you don’t want to make repairs. You’ll still be able to sell your house fast in Raleigh if you want to sell it as-is.

Know your options to sell your house fast

Downtown Raleigh, North Carolina

Image by Darpan via Unsplash

It’s easy enough just to throw a “for sale” sign up in your front yard with your phone number on it and see what happens. FSBO isn’t going to get you the fastest sale, the highest price, or the easiest process. However, Raleigh homeowners can list on Craigslist, Facebook marketplace, or in local newspapers like the Raleigh News & Observer. These are all tactics to get the word out about your home for sale. 

If you decide to work with a real estate company, find one with experience. In the fast-changing market in Raleigh, experience matters. There are dozens of independent agents who can help walk you through the process in exchange for a commission. 

Finding a company to buy your house fast

Choosing a home buying company like a we buy houses company is another way to go. These companies will buy your home as-is and will waive some steps in the process. Don’t ever pay anything upfront. A common homebuying scam is to ask buyers for fees before the sale. If a cash buyer or agent asks you for payment, find someone else to work with. 

Selling your home fast in Raleigh doesn’t have to be stressful! With these tips, you can navigate the process quickly and get your Triangle home sold.