Being issued a foreclosure judgment is a distressing moment. You may feel like you have failed or that the world has cheated you. However, lashing out or shutting down will do nothing to help your current situation. Instead, prepare for the coming storm by learning about what to expect from the process.
A Foreclosure Auction Can Take Months to Occur
Foreclosure auctions occur after a foreclosure judgment is issued by the court. In Indiana, auctions must occur within 120 days from the judgment date, and receive a formal notification informing you of the date of auction.
While you may have some time before the auction occurs, it is important to use this time to begin preparing for the inevitable. Some important steps are to:
- Begin packing your belongings for a quick move
- Familiarize yourself with your rights
- Review your foreclosure documents
- Seek out ways to sell your home before the auction date
What is a Deference Judgment?
A deference judgment is a court order that you will have to pay the difference in the loan if your home is not sold for more than the loan amount. These are not always issued, but it is important to establish early on if you will be facing a deference judgment, as you may need to dip into savings, sell off other assets, or speak with an attorney to file for bankruptcy to avoid a bill you cannot afford.
Prospective Buyers Need Permission to Enter Your Property
Up until the foreclosure auction, you are still the lawful occupant of the property. As such, prospective buyers cannot enter your premises without your permission. Sometimes, foreclosure bidders will try to get a leg up on their competition by attempting to inspect your home before the auction date, but keep in mind they will ALWAYS need permission to enter your property.
An exception to this rule will be your lender. They will likely receive court permission to send an inspector to your home before the auction date to determine the current state of the home and set a fair market value for the auction. In most cases, this will be the only inspector you should expect to arrive at your home before the auction.
Other investors may also approach you during this time. These are not prospective auction bidders, but rather individuals or corporations that are attempting to buy your home before the auction occurs. It is up to you whether you allow these individuals to inspect your home, but some general guidelines are to:
- Ask for proof of funds
- Ask for a lender letter to be provided
- Only sell as-is
- Compare their offer with that of a reputable company (such as WCC Properties)
- Review their online presence and business ratings
You Can Sell Your Home Up Until the Auction Date
Yes! Selling your home before the auction date is an option. You have up until the date of the auction to sell your home. During this time, you should seek out buyers to give a better offer than you would receive from a foreclosure auction. This carries a few potential benefits:
- Fewer fees will be incurred from a direct sale vs. a foreclosure auction
- You have a higher likelihood of receiving a fair price for your home, which can result in surplus funds. This can help you walk away with your built-up equity
- You will have easier access to your surplus funds
- You will avoid heavy credit hits incurred from foreclosure auctions
It is important to begin looking for prospective buyers, like WCC Properties, as soon as possible. The longer you wait, the harder it will be to get your house sold in time.
WCC Properties Can Give a Quick Offer to Avoid Foreclosure
If you are coming down to the wire and need to sell your home within a few days, WCC Properties can step in to help. We will inspect your home within 24 hours and offer a fair cash as-is offer on the spot. This will save you the headache and potential financial ruin from a foreclosure.
