Selling your Alabama home in foreclosure: financing options through the government may be the best choice
Foreclosure home selling and financing options in Alabama can be daunting to figure out. Homeowners have various selling options that help preserve credit, yet few financing options. Buyers, however, have many of the same financing options for Alabama homes in foreclosure as they would for a traditional sale.
To find out options you and your buyers have for Alabama foreclosure home sales financing, you’ll want to talk to your lender and the US Department of Housing and Urban Development (HUD). You’ll want to know what options your lender prefers and if you qualify. Pre-foreclosure sales are generally less harmful to your credit than a foreclosure. A federal program may be your best option if the sale price of your home will not cover what you owe on it. In Alabama, lenders do not have to forgive a deficiency balance and may demand the rest of the mortgage owed. Talk to your lender about pre-foreclosure sale programs that forgive balances. You may also qualify for the Homes Affordable Foreclosure Alternatives (HAFA) program, which typically waives a deficiency balance.
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If your lender won’t forgive the remainder of your balance after a pre-foreclosure sale, there are still Alabama foreclosure home sales financing options open to you. Your lender may authorize an unsecured loan, which allows you to make installment payments on the deficiency after the house sells.
Alabama state law does not require you hire a real estate agent to help you with a foreclosure or pre-foreclosure sale. However, your lending institution may require that you list the property with a local agent as proof that you are doing all that you can to sell your home. Reply! has real estate agents experienced with the financing options for selling Alabama homes in foreclosure.