Can I Sell My Home If It’s In Foreclosure in Nevada?

Foreclosure is a distressing situation that arises when a homeowner falls behind on mortgage payments with no means to recover the arrears. As a mortgage constitutes a binding contract between the homeowner and the lender, failure to meet the obligations may lead to the lender auctioning off the property to settle the debt. This unfortunate event can result in homelessness and severely impact the individual’s creditworthiness.

No one wants to receive a notice of foreclosure and yet, in a nationwide study, nearly 1 million Americans were afraid of losing their homes (U.S. Census Bureau Household Pulse Survey, fielded from July 27 to Aug. 8, 2022). Foreclosure can occur from a number of reasons, including:

• Job loss and loss of income
• Divorce or death of a spouse or partner
• Mounting debt, including medical and credit cards
• Moving without being able to sell the home
• Natural disaster

NLS Homes is a reputable real estate investment firm in Nevada specializing in purchasing distressed properties and houses for cash. Our team offers competitive cash deals, eliminating the need for real estate agents, title companies, or traditional bank financing. Experience a hassle-free transaction with us today!

What is Foreclosure?

Let’s say you or your spouse recently lost your job. You still have the same bills to pay but unfortunately you don’t have the money to cover your expenses, including your mortgage payment. What happens now? Even if you find another job the amount of debt you’ve accrued during that time might be too large for you to pay off in a reasonable amount of time. When this happens, the bank starts the process of foreclosure.

How Long Do You Have To Get Out of Your House After Foreclosure?

Foreclosure procedures typically involve several key steps, including missed payments, public notice, foreclosure, auction, and eviction. However, the timeline for each phase can vary significantly from state to state. This means that the period between missed payments and foreclosure sale could range anywhere from 120 days to nine months, depending on whether the foreclosure process is judicial or non-judicial. Throughout this period, your lender will make contact through various channels such as phone calls, mail, and emails to keep you informed about the proceedings.

The Different Types of Foreclosure

There are two different types of foreclosure you may experience: nonjudicial foreclosure or judicial foreclosure.

How to Sell Your House Before Foreclosure in Nevada

Let’s break down a few ways you can sell your house, depending on your time frame and situation:

Hire A Real Estate Agent

When considering selling a house or property, many Americans instinctively turn to local real estate agents. However, in challenging situations like foreclosure, it’s crucial to weigh the pros and cons of this common approach. While a skilled real estate agent can leverage their expertise to list your property on the MLS, prepare it for showings, and host open houses, their services come at a cost. By the time the closing process concludes, a substantial portion of the sale proceeds is allocated towards the agent’s commission, typically ranging from 3% to 6%. This can be a significant setback for individuals already burdened by debt, striving to repay their lender with every available resource.

Moreover, the uncertainty surrounding the closing timeline adds another layer of stress. Despite assurances from realtors, the process of finding the right buyer and navigating a traditional 30+ day closing period can exacerbate the anxieties of homeowners on the brink of auction and eviction. In such urgent scenarios, even a brief one-month delay could prove detrimental.

Short Sale

If you find yourself in a situation where you owe more on your property than its current market value, your real estate agent may advise you to consider a short sale. A short sale becomes necessary when the outstanding mortgage balance exceeds the property’s worth. For instance, if your house has a mortgage debt of $200,000 but is valued at only $150,000 in the current market, a short sale is typically required. However, it’s important to note that while a short sale may seem like a viable solution, it is neither a quick nor an easy process.

The initial step in initiating a short sale is to obtain approval from your lender. To qualify for a short sale, you must demonstrate financial hardship by providing documentation such as W-2s, medical bills, or other relevant paperwork. In cases where the financial hardship is due to a loss of income, the lender will need assurance that the income loss is prolonged and unlikely to reverse in the foreseeable future. If the lender grants approval for the short sale, you will need to engage a real estate agent and attorney experienced in handling short sales. It’s essential to note that their fees will be comparable to those of a traditional home sale.

If you have not been in foreclosure for an extended period and have maintained communication with your lender, there is a higher likelihood of the short sale being approved. Opting for a short sale enables the lender to avoid the time and costs associated with foreclosure proceedings while still recovering a portion of the outstanding mortgage balance. However, for the average homeowner, a short sale can have lasting repercussions for the next 5 to 7 years.

Although a short sale may assist in settling some of your debts through the sale of the property, it can have a detrimental impact on your credit similar to that of filing for bankruptcy. The credit bureaus report the mortgage delinquency and short sale to lenders, making it challenging for former homeowners to secure credit cards, finance a vehicle, or obtain new housing for an equivalent duration as a bankruptcy.

Sell Your House AS-IS to A Cash Buyer

If you’re facing a time crunch to sell your house before a foreclosure leads to auction and eviction in Henderson, Nevada [market_zip], don’t panic. There are several options available to you. You can opt to sell your property with a real estate agent, collaborate with your lender for a short sale, or – the most efficient choice – seek assistance from a reputable cash investor like NLS Homes for a quick resolution.

Some of the benefits of selling to a direct cash investor include:

• A quick and pain-free closing process.
• Avoid paying any commissions or fees.
• You won’t have to worry about marketing your house and waiting for a buyer.
• No need to clean-up or complete any repairs!

By selling your home as-is to a direct cash buyer in Henderson, Nevada, you have the opportunity to avoid the risk of losing your home at an auction. Additionally, this approach might allow you to generate sufficient funds to eliminate financial debt. Embracing a future free from the weight of monthly mortgage payments and looming debt is a valuable gift you can grant yourself!

Can You Stop Foreclosure Once it Starts?

Sell Your House Fast to a Cash Buyer 

Are you in Henderson and feeling the pressure to sell your house quickly without the typical 30+ day wait for a traditional close? Worried about the negative impact of a short sale on your credit score? Looking to settle your debts in one swoop and move on from the burden of dealing with the bank? A direct home buyer and cash investor could offer the ideal solution you seek! By partnering with a reputable and reliable investor known for their excellent service in Henderson, you can expect a swift transaction with cash readily available to purchase your property as-is. With a cash buyer, you can bypass the time-consuming processes of foreclosure, eviction, and auction, and safeguard your credit status in the process!

While selling to a trusted cash investor may not fetch you the full market value for your property, the advantages of a quick closing, along with the absence of fees, mandatory inspections, and commissions, often make up for the difference. Furthermore, the fast closing timeline offered by an investor can enable you to finalize the sale before the bank proceeds with auctioning your property! This means you can secure a deal that works best for you, rather than settling for a fraction of the property’s worth, as the bank might opt for just to clear their books.