Given the global economic upheaval of the last few years, it’s no surprise that many in the U.S. are struggling to keep afloat. Rising prices across all sectors plus the Federal Reserve’s response in raising interest rates in an attempt to fight against inflation mean that many homeowners across the country are having a hard time keeping up with their mortgage payments and other bills. And if one unexpected life event occurs, what little breathing room you might have in your budget can vanish seemingly overnight.

Unsurprisingly, U.S. foreclosure filings have increased 62% between September 2021 and September 2022. Getting that notice that your mortgage lender has begun formal foreclosure proceedings against your property can feel devastating, but you might also be wondering if there’s some light at the end of the tunnel—if you can only sell your home!

But can you sell your home in Las Vegas, Nevada, if it’s already in foreclosure?

The answer is in many cases, a (somewhat qualified) “yes.” Here’s what to know about selling your home either before or after you get that formal notice from your lender.

Pre-Foreclosure vs. Foreclosure

Timing is everything here. There are different legal, financial, and practical concerns depending on where you are in the foreclosure process.

Before foreclosure proceedings have officially begun with the filing and formal service of a summons and complaint or a Notice of Foreclosure (depending on your state’s procedure), you’ll still probably have a good idea what’s coming, especially if you’ve missed more than a few mortgage payments or anticipate that being the case in the next few months. This is generally considered the best time period in which the owner can sell the home, resolve the debt with the mortgage company, and avoid the negative marks on their credit reports that come with a foreclosure filing.

After you’ve received that formal notice, you can still sell your home if the auction hasn’t yet occurred. If you have built up equity in your home—which is a very real possibility after the rising home rates of recent years, even though they’re starting to drop a bit—then you can even turn a bit of a profit. After the auction, of course, no further sale can take place because you are no longer the owner of record.

Is Selling the Right Move?

Given those rising values and tight inventory levels in many parts of the country, you may well be better off selling your home than attempting to negotiate a settlement with your mortgage lender or simply walking away. That’s especially true if the source of your financial stress is likely to be ongoing, and not simply an immediate obstacle that a little planning and budgeting can rectify.

Look carefully at what other homes in your neighborhood are selling for, especially ones that are similar to yours in size, age, and style. You can also use an online value estimating tool to get an informal idea of your home’s value. If you’ve owned your home for several years, and the recent comparable sales in your area reflect higher than usual prices, you may well have some equity that can help shield you against financial stressors and start fresh somewhere else, without taking a ding to your credit scores.

Calculate What You Owe

Figuring out the total debt on your mortgage should be easy, but sometimes it’s not so straightforward. The best way through this process is to contact your lender for an accounting of what you owe, including missed payments and late fees.

If you’ve already received a formal notice of foreclosure proceedings, it’s very possible you’ll also be on the hook for the lender’s attorney’s fees incurred in preparing and filing the paperwork. Don’t forget to include that in the total, as these fees can rapidly add up. You’ll need to sell your home for a price that’s sufficient to cover all of these costs as well as the underlying mortgage debt if you want to break even, much less turn a profit.

Choose Your Real Estate Agent Carefully

If you do choose to sell your home, it’s a good idea to give some careful consideration to choosing the best possible real estate agent in Las Vegas to manage the sale. Whether you’re in foreclosure or heading there, this is one home sale you don’t want to handle yourself. Leave the “For Sale By Owner” signs in the store, and connect with a local experienced agent who understands the foreclosure process and can protect your interests, help you price your house fairly but competitively, and market the property for the widest possible exposure to qualified purchasers.