Selling Home While in Foreclosure in Florida

[kmattin]

Has anyone had the experience or know of any that have sold or is attempting to sell their while the home is in foreclosure. I am not talking about a short sale, but a regular sale. Is there a process? Is there any tips? Should I, if this decision to sell is made, need to notify the bank prior to discussing the sale with an agent? Thanks in advance for all your help.

[LadyInTheRed]

I don't have any experience with this, but the process should be the same as if there were no foreclosure. The home is yours until the foreclosure sale. You just have to make sure your sale will close and your mortgage will be paid in full, including all fees and penalties, before the foreclosure sale date and the sale contract will have to be contingent on that happening.

How soon is the foreclosure sale?

[kmattin]

I don't have any experience with this, but the process should be the same as if there were no foreclosure. The home is yours until the foreclosure sale. You just have to make sure your sale will close and your mortgage will be paid in full, including all fees and penalties, before the foreclosure sale date and the sale contract will have to be contingent on that happening.

How soon is the foreclosure sale?

Thanks for your reply. There is no sale date at this time. I did not know until yesterday that we could sell our home while it is in foreclosure. I know better now. I just want to get an agent on board and get them talking to the bank so no further action is taken. I want to see the bank is paid what they are owed and enough earned through the sale to get us out and into something else.

[LadyInTheRed]

Don't count on the bank not taking action just because you put the home on the market. You may just need to get it sold before they do it first. Isn't Florida a judicial foreclosure state? Have you been served with a complaint yet?

My first response may not be correct in a judicial foreclosure. My first reaction was to look at it from a Deed of Trust perspective, because that is what I am used to. Once they get the judgment, I doubt you can sell even if the foreclosure sale hasn't taken place. Just filing the complaint might also prevent you from selling. I bet Justbroke will come along and shed more light on this. I just edited the title to include "Florida" to help draw attention of those with knowledge of Florida procedures, including JB.

[kmattin]

Don't count on the bank not taking action just because you put the home on the market. You may just need to get it sold before they do it first. Isn't Florida a judicial foreclosure state? Have you been served with a complaint yet?

My first response may not be correct in a judicial foreclosure. My first reaction was to look at it from a Deed of Trust perspective, because that is what I am used to. Once they get the judgment, I doubt you can sell even if the foreclosure sale hasn't taken place. Just filing the complaint might also prevent you from selling. I bet Justbroke will come along and shed more light on this. I just edited the title to include "Florida" to help draw attention of those with knowledge of Florida procedures, including JB.

Florida is a judicial state. Those that I have talked to today say that there are no guarantees that the bank will not continue foreclosure. They have said however, once an agent and title company start looking and talking, the bank is less likely to continue prosecution, but will expect reasonable communication. I truly feel that once an agent is chosen and communication is made, the bank take a wait and see status for a short period. No communication or progress, I believe all bets will be off.

[Drazil65]

I will add, make sure you know the current payoff (including all the arrears, any late fees, bank attorney fees etc.) as an appraisal from a potential buyer will have to cover everything the bank expects in a payoff. If you are at all under water and the new appraisal cannot support everything that is owed, you will end up having to go to the table with a check to pay the balance of all owed. Things can turn very quickly into a short sale situation unless you have plenty of equity already build in.

The bank will more than likely give you a certain amount of time to make the sale but will be ready to go forward after that with foreclosure. Just make sure you know the numbers, do some research on your own for homes selling in your neighborhood and the true value of your home (all things considered like updates, any other foreclosures in area etc. this all affects the bottom line). You may want to consider getting an appraisal up front just so you have supporting documentation of what the home is worth in todays environment. Good luck.

[kmattin]

I will add, make sure you know the current payoff (including all the arrears, any late fees, bank attorney fees etc.) as an appraisal from a potential buyer will have to cover everything the bank expects in a payoff. If you are at all under water and the new appraisal cannot support everything that is owed, you will end up having to go to the table with a check to pay the balance of all owed. Things can turn very quickly into a short sale situation unless you have plenty of equity already build in.

The bank will more than likely give you a certain amount of time to make the sale but will be ready to go forward after that with foreclosure. Just make sure you know the numbers, do some research on your own for homes selling in your neighborhood and the true value of your home (all things considered like updates, any other foreclosures in area etc. this all affects the bottom line). You may want to consider getting an appraisal up front just so you have supporting documentation of what the home is worth in todays environment. Good luck.

I have, in the works a title company and an attorney working on the payoff amount. The attorney with the title company will be negotiating fees and penalties, etc.. I understand from this attorney this is done on a regular basis for homeowners in my situation. The results are varied, but any fees and penalties that can be negotiated away are a good thing.
Banks, in my opinion are a necessary evil. They will cooperate with me up to a point. I am sure I am not the only one who has decided to tell them where to stick their modification offer and sell. They will view this with a suspicious eye until they receive a firm closing date. My job is to do just as you stated, look and see what homes values in my area are. I Have done this with the help of two agents and have found my home to be very sellable and worth more than I originally thought.
Thanks for you reply. I hope to hear more from you.