Not too long ago, I emailed a homeowner who had shown interest in selling her Pasadena property. I told her that I purchase properties for cash and, because of that, can close escrow very quickly. I was surprised (but then again not) at her response: “That would be nice, but my home was auctioned off this AM.” I began writing a long email back that I deleted shortly thereafter. It was too late and all that was left to say was how sorry I was.
For the rest of the day after our email exchange, the same question replayed in my mind. It’s the same question that I always contemplate after seeing homeowners lose their properties due to foreclosure. Why didn’t they reach out before it was too late?
I did my research before I emailed her. I knew that she had equity in her home. She could have sold the property, saved her credit, and possibly walked away with some money to help her get back on her feet.
That being said, she still might see some profit from the auction. The problem is, that check may take a while to see it’s way into her mailbox. And don’t forget about the hefty auction fees that will be taken out of it.
I really don’t know why she chose to not reach out. If she had, things could have gone much differently for her. I can only hope that others will learn from this and realize there are MUCH better alternatives to having their home auctioned off. (Check out a few options here)
It truly breaks my heart to see people lose their homes, especially this way. If you’re facing foreclosure, don’t ignore the situation. If you do, you may find yourself writing a similar email to the one the Pasadena woman sent me. Take the first step by reaching out to a real estate professional, who can show you your options and help you decide what your next step should be.