Sell your Minneapolis foreclosure home to cash home buyer

Foreclosure is a tough part of life some of us go through, it’s a sucky time. It’s usually caused by a job loss, divorce, health problems, kids, it’s a tough patch in life. Most the people I’ve worked with and met through the years were in a tough spot but it was temporary, brighter days always come. So if this is you, battle through, you’ll get back on your feet soon.

If you’re facing foreclosure, you might be asking yourself, what do I do? I’m in a bad spot, can’t afford to pay the mortgage, what are my options. I know in my own life when I went through a hardship, it was tough but learning what options I could chose helped me feel better about my situation and taking action to get myself back on my feet helped me feel the circumstance was temporary. In this blog we will explore your options.

Do you want to keep your house

The first question to ask yourself, do you want to keep your home? Sometimes it’s a divorce or sad situation and the home represents a sad memory in your life and your home reminds you of those sad memories so you don’t want to live there anymore. If you don’t want to keep your home, lets explore these options, then we will explore options to keep your home.

  1. You can sell to a cash home buyer. Its super easy, they come out, look at your home, make an offer to purchase with cash as-is and close when you want. With this option, you can leave anything you don’t want to move, coordinate closing that’s convenient for you. This is typically by far, the easiest way to sell your home but typically not a way to get the most money. Make sure you chose a reputable company that can actually close, its good to have the cash home buyer show proof of funds they actually have the cash, many don’t…weird, I know but its true.
  2. List with a realtor, go through the showings, inspections, possible repairs and sell. Typically a buyer who wants to live in your home will pay the most for it, the downside, it’s not nearly as convenient.
  3. If you don’t have equity, you can try for a short sale. This is where the bank will take less than what is owed on the loan. Make sure to consult a tax professional if there will be any tax implications.

If you want to keep your home

  1. Call your lender right away, see if they will work with you on a loan modification, the biggest mistake homeowners make is waiting to long and then running out of time. There are lots of programs that can help you. Many lenders will offer a loan modification, you will still have to show proof you can afford the home. If your loan modification is approved, they may do what’s called forbearance, where the delinquent portion owned is rolled onto the back of the loan and the terms are extended. Sometimes they will set up payments for a period of time and then want a balloon for all delinquent payments, make sure the loan modification makes sense for you.

What happens when you go through foreclosure.

Most banks in Minneapolis, St Paul or twin cities area do foreclosure by advertisement. You can read about it here Minnesota Foreclosure process statues. In general, the bank will serve you notice, then advertise in the paper for a number of weeks, then the sheriff will hold an auction, once the auction takes place, either a buyer will purchase the home or no one will and the bank will keep it. Then the clock will start on the redemption time. You don’t lose your home right away, in Minnesota you have 6 months to redeem, pay the balance in full. If you don’t redeem within the 6 months, typically after the redemption period, the bank will offer you some money called cash for keys (you can try to negotiate this amount) they pay you to move out, leave the home in broom swept condition and give the bank the keys. After the redemption period expires, if you don’t negotiate a successful cash for keys, and don’t move out, the bank will likely, do an eviction process, this is where the sheriff will come and remove you from the home.  Most don’t get to an eviction, I wouldn’t recommend it. This will likely show foreclosure and eviction on your credit, not great when you want to find a rental.

If you have equity, you can still sell your as long as the amount owed to the bank is redeemed before the end of the redemption period. For example.

You own a home worth $300k, you owe $150k and you went through foreclosure sale (the sheriff auction your home off) now the redemption clock started, lets say the redemption date is June 1st 2022, I could buy your home for $225k and close before June 1st and you still get a check for the difference of what is owed to the bank and your equity.

How long does Foreclosure take?

Typically the foreclosure by advertisement process from start to finish, it takes about a year, sometimes longer, sometimes a tad shorter. So you’re in this situation, you have some time to figure out your next move. Some people in this situation will stay in the home until the end making no house, insurance or property tax payments, then ask for cash for keys to move out at the end to help themselves financially recover. Remember at anytime along the way you can sell your home. If you don’t have equity, you can try to do a short sale as mentioned above.

Here are some resource if you’re in foreclosure

MN attorney general facing foreclosure

Department of Housing and Urban Development housing counselor

Ramsey County foreclosure prevention

Thanks for reading, if you want to talk more about your foreclosure and thinking about selling, reach out to us today, let us make you a cash offer.

Minneapolis Cash home buyer
Sell my Minneapolis house
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