- How to sell foreclosure homes?
Selling foreclosed property is a tricky business. However, if you take advice from professional home buying experts like EighteenHomes then this challenging task can be turned into a wonderful home-selling experience.
- What is the average foreclosure rate in the U.S.?
The average foreclosure rate in U.S. for 2024 is 0.26 which is 0.3% higher as compared to the previous year.
- What are the advantages of selling my house during foreclosure?
Selling your house during foreclosure helps you avoid damage to your credit score, settle outstanding mortgage debt, and potentially keep any remaining equity after the sale.
- If my house doesn’t sell before the foreclosure auction. What will happen?
The lender may proceed with the auction if your house doesn’t sell. In such a scenario, you could lose the property but taking quick actions can avoid this outcome.
- Do I need my lender’s approval to sell during foreclosure?
Yes, if your sale price is less than the mortgage balance, you may need your lender’s approval for a short sale.
Over 170,000 housing units in the U.S. had foreclosure filings between January and June of 2024. ATTOM Data Solutions
Foreclosure is a stressful experience for every homeowner and that’s why many people ask, “How to sell foreclosure homes.” It is a concern for someone facing such a situation and only that individual can understand the urgency and complexity of overwhelming circumstances. But before going into this detail, it would be better to first gain awareness of the foreclosure process. What is it, how long does it take, and can you sell a house in foreclosure?
Table 1: Foreclosure Rates by State, including Ohio & Kentucky (Oct 2024)
| State | Foreclosure Rate (1 in every X housing unit) | Number of Foreclosures | Total Housing Units |
| Nevada | 1 in 2,741 | 470 | 1,288,357 |
| New Jersey | 1 in 3,059 | 1,228 | 3,756,340 |
| Florida | 1 in 3,086 | 3,213 | 9,915,957 |
| California | 1 in 3,152 | 4,577 | 14,424,442 |
| South Carolina | 1 in 3,272 | 722 | 2,362,253 |
| Ohio | 1 in 3,450 | 1,522 | 5,251,209 |
| Kentucky | 1 in 6,387 | 313 | 1,999,202 |
Source: ATTOM Data Solutions
What is the Foreclosure Process?
“When most agents hear the word foreclosure, they think that means a bank has taken the house back and is displacing the previous homeowner from the property.” Sean Anderson, A Real Estate Agent
Many people misunderstand it and that’s the reason Sean Anderson is pointing towards people’s unawareness of the foreclosure process.
Actually, it is a legal process where a borrower can lose property rights due to his inability to pay monthly mortgage payments. Usually, this happens when the borrower is overdue by more than 120 days.
Did you know? An average foreclosure rate in U.S. was 0.26% in 2023, up from 0.23% in 2022, as per Money LowDown,
Table 2: Latest Foreclosure Statistics 2024
| Metric | Value |
| Total U.S. Properties with Foreclosure Filings | 89,466 |
| Change from Previous Quarter | Decrease of 6% |
| Change from Same Period Last Year | Decrease of 8% |
| National Foreclosure Rate | 1 in every 794 housing units (0.13%) |
Source: ATTOM Data Solutions
How Long Does a Foreclosure Take?
As per 2021 industry data, the average foreclosure process can take up to 922 days. The process initiates when the borrower fails to make timely payments of the mortgage between 3-6 months, during which the lender notifies them in writing of the default. This is called the pre-foreclosure period. Such cases could start the official foreclosure proceedings at least months later, which on average would not be less than four consecutive months of missed payments.
Before auction, the deficiency payment by the borrower would suffice to end foreclosure, resulting in halting both eviction and sale. If a homeowner can’t pay the default amount at the end of the grace period, the lender puts up the house for auction. The auction is an indication that foreclosure has begun. If the lender is unable to auction off the foreclosed property, it becomes bank-owned or real estate owned, also known as REO.
Effective Ways to Avoid Foreclosures
Here are the key strategies to avoid foreclosure and mitigate the risk of losing your home:
Consult with Home Advisors: The Department of Housing and Urban Development provides affordable and even free access to housing advice. The counselors are sponsored by HUD to provide housing counseling anywhere across the country. They can explain to you various federal and state laws and give you different options for refinancing. Some of these counselors might even correspond with your lender on your behalf.
Refinancing: It is when your lender allows you to borrow a loan less than your outstanding balance and waive of the difference which helps you stay in your home.
Forbearance: Negotiation is the best tool to avoid a complex situation, such as foreclosure, yet many of us underestimate its value. For example, if you are suffering from financial difficulties, you can communicate and convince the lender to halt monthly payments for a certain period until you save up enough money to restart your regular payments.
Repayment Plan: You can ask your lender to create a repayment plan for you. In this scenario, you need to pay some additional amount each month until you have paid out the balance of your missed payment.
An Alarming Fact: The residents of the following states where foreclosure rates were too high in the first half of the previous year, 2024.
Table 3: States with Highest Foreclosure Rate Increases (First Half of 2024)
| State | Increase in Foreclosure Activity (%) |
| South Dakota | 93% |
| North Dakota | 86% |
| Kentucky | 73% |
| Massachusetts | 46% |
| Idaho | 30% |
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How to Sell Foreclosure Homes in 2025? Key Strategies & Tips
Selling foreclosure houses is a challenging task where each move should be taken with caution. Here are the tricks which will enable you to manage this critical situation with confidence:
Lender Engagement: Some lenders will let you sell the house even after they have started foreclosure proceedings. Especially, if it helps avoid further legal complications.
Set a Realistic Price: Pricing your home is the most important aspect before selling the foreclosed house. Foreclosed homes are often sold “as-is,” reducing repair costs but potentially lowering buyer interest if the property is neglected. After thorough analysis of your property, you could set realistic expectations and address buyer concerns effectively. But it’s only possible when you receive approval from your lender and for that reason the following option could be interesting.
Short Sale Option: It enables the homeowners to sell their property for less than what they owe on their mortgage while acquiring approval from the lender. Short of sale option reduces impact on credit scores and eliminates remaining debt post-sale.
Consult a Cash Home Buyer or Real Estate Investor: Find well-reputed cash home buyers and investors who could provide you with practical solutions for your problem. You can contact one of these to get a cash offer for your house. The foreclosure process is highly challenging so to handle it you must take advice from a professional expert. By this you can reduce the hassle, expedite the sale of your house, and save your precious time and money.
Provide Incentives to Buyers: Make your deal more attractive, such as covering some or all the closing costs or including a home warranty to give buyers peace of mind about any potential repairs. Offering incentives shows buyers that you’re motivated to sell and willing to make the process seamless and hassle-free.
Contact EighteenHomes to sell your house fast. No matter what condition your home is in, we buy houses as-is with our hassle-free process.
Conclusion
Are you wondering about how to sell foreclosure homes? For this you need to understand the foreclosure process and after gaining this knowledge you need should use different tricks, such as taking permission from lenders to sell the property, utilizing short of sales option, delivering incentives to buyers, or consulting a cash home buyer. Selling a foreclosed house is never easy but if you make the right moves, it can become a smooth selling experience as well.