Are you a homeowner who wants to sell your house fast? Do you have an ugly house that you inherited but don’t want? You’re in luck! We buy houses in all conditions, in any neighborhood – quickly and without a real estate agent.
If you’re asking, “It is entirely possible to sell your sell my house without an agent?” the answer is YES! Read on to find out 2 easy ways to sell your house without a realtor.
The first way to sell a house without a realtor is FSBO (for sale by owner).
What is a FSBO Property?
A FSBO property (pronounced FIZ-bo) means that it is being sold by the owner of the property and not a real estate agent. While selling a home on your own has its good points, there are cons to the situation as well. But when it is done correctly, it can be very rewarding.
Pros of FSBO
You can save money on commission. The average commission for the selling price could be well over $20,000. When you sell your house on your own, that money goes right into your pocket and not a real estate agent’s.
You have control of the sale. Since you’re the one selling your home, you get control of aspects of the sale. You can choose when to negotiate and how much you want to sell it for. You also have control over showing your home. If you rely on a real estate agent to sell the property, they make appointments according to their schedule. This means that your home will always need to be on point and ready to show.
You can concentrate more of your time selling the house.
When you sell your own home without a real estate agent, you can devote as much time as you want to the sale. You will probably be able to sell even faster this way. Of course, this depends on if you really do have the time to devote. On the other hand, if you hire a real estate agent, you will have to settle for the time allotted for you. An agent has a lot more clients other than you. They have a lot on their plate, and you won’t be their priority.
Cons of FSBO
Marketing a property is not simple. There are many more sellers who want to list their home besides you. This means that the competition can be fierce. You need to stand out if you want to sell your home quickly and for the best price. Successful marketing is a skill that takes time and effort. (Not to mention some know-how!) An agent gets the word out to their network so that your property gets noticed.
It can take months for your home to sell. If you’re wondering, “How fast can I sell my house without an estate agent?” Well, the average home sells in 3 to 6 months. And that depends on the market, of course.
INSIDER TIP: Buyer’s agents may resent the fact that you did not want to use an agent and avoid showing your house. Doing this, while inappropriate, is a real thing and can hurt your chances of finding a buyer.
You’ll continue to pay the mortgage and insurance while you wait to sell your home. If you have a mortgage that you’re still paying on, you’ll need to keep on paying. Until you sell, that is. This is especially unfortunate if you have already moved out of the home. You may currently be paying two mortgages, and who wants to do that?
It’s up to you to make sure the buyer is qualified. This is where you really need to know what you’re doing. Obviously, if a buyer is not qualified, they cannot buy your home. You need more than a mortgage letter for this.
All delinquencies must be current. This includes mortgage, insurance, tax, and any homeowners insurance delinquencies.
#2: Sell to an Investor
The other alternative to getting your house sold is by selling to an investor.
How Does It Work?
The process is simple! First, you contact us about a home that you want to sell. Then, we come out to your property to look at it. If you’re worried about the condition of your home, it’s okay – We have seen it all! We are there to sell your home, not judge the appearance of it. We buy houses of all conditions.
Everything is discreet. There’s no fancy open houses, no landscaping projects to alert nosy neighbors.
You don’t have to wait for a buyer. We are the buyer, and we are already interested! We want to buy your home for a fair price.
We’ll close super-quickly. We’ll close at a local title company or attorney’s office in as little as 7 days. Need more time? Just let us know. We’re flexible and will work with you to find the best outcome.
There’s no need for renovations or repairs. We buy houses as-is, so you don’t have to do anything to your home. If something is broke, we’ll fix it. You don’t even need to clean the house!
No banks are involved. We pay cash for your home! There’s no need to get banks involved with the transaction. You get cold, hard cash that you can use immediately.
We Buy Houses Fast and Hassle-Free!
Sell your house fast and for cash with Area Code Home Buyers. We are a group of independent home buyers located in every area code of the country, and our website is a directory of investors nationwide.
If you’re looking for a local home buyer, contact us for a quick valuation and guaranteed cash offer within 24 hours!
Do you have a house that you want to sell as soon as possible? We buy houses in any condition, in any neighborhood – for a fair price. You might even have tenants in the house that you cannot get rid of.
Or maybe you inherited a dilapidated home in a neighborhood that is less than desirable. Don’t worry!
We can get that home off your hands in a jiffy. Read on to learn more!
What are home buying companies?
Home buying companies are an independent group of real estate investors who buy houses, no matter what condition they are in. We buy houses, town homes, condos, and more – for cash.
It’s important to note that home buying companies are not real estate agents – We are investors. And we’re located in every area code of the country!
One of the best parts about selling your home to a quick house sale company is that you don’t have to worry about finding a buyer. We already want to buy your property!
Why work with a home buying company?
Why would a homeowner want to sell their home fast and as-is? Well, there are many reasons. Perhaps you are trying to avoid foreclosure and you want the property out of your hands as quickly as possible.
Or maybe you just got divorced and don’t want to keep the property you once shared with your spouse. Are you renting your house out, or is it vacant? Doesn’t matter – we’ll buy houses that are unlivable and undesirable.
Selling your home to a home buying company involves a simplified process that is stress-free and quick. If you have a house and want to sell fast without the headaches, we’ll make you a fair cash offer. We’ll even close when you’re completely ready!
Some other benefits of choosing a home buying company over a real estate company to sell your home:
- We’ll pay closing costs.
- You can close quickly.
- We’ll pay you cold, hard cash.
- You won’t have to deal with any banks.
- There are no open houses.
- There’s no staging necessary.
Maybe you need to relocate for your job and must sell your home as soon as possible. Looking to downsize? We are one of those home buying companies that will take care of everything for you.
The process is quick and stress-free in 3 easy steps:
Submit the form. Reach out and let us know how we can help. We are here to take your home off your hands for you.
Arrange a viewing. A local home buyer will come to your home to answer any questions and present an offer. Remember, you don’t have to stage or get your house ready. It doesn’t matter what it looks like or what condition it’s in!
Schedule closing and moving dates. Since your buyer isn’t moving in, you get to pick closing and moving dates that work for YOU! There’s no rush, so you can do things according to your timeline.
Sell your house fast and for cash with Area Code Home Buyers. We are a group of independent home buyers located in every area code of the country, and our website is a directory of investors nationwide.
If you’re looking for a local home buyer, contact us for a quick valuation and guaranteed cash offer within 24 hours!
We Buy Houses companies seem to be popping up more frequently. If you’ve been thinking about selling a house, should you consider one of these buyers?
We Buy Houses
We Buy Houses companies are more visible today. You might have seen ‘We Buy Houses’ signs posted at local street corners, billboards on your commute to work, letters in your mailbox, ads on Facebook, or stories in the news about them.
They appear to be becoming a far more normal solution for selling a house today. So, who are these companies? What do they really do? Are they a good choice for selling your home? How do you find the best buyers for your property?
Who are Home Buying Companies?
Who is behind these ads and services?
There are actually several slightly different types of companies you might see proclaiming ‘We Buy Houses’ out there. The first are your regular local home buyers. They are typically direct real estate investors. They look to help people by buying their homes directly, fixing them up as needed, and then either rent them out, or pass them on to good families in need of a safe and affordable place to live. These people are your neighbors, one of the people you might have seen in your yoga class, or said hello to at your local Home Depot store on the weekend.
The second type are franchises of national chains. They’ll occasionally make a splash with billboards and maybe even TV ads in an area, before moving on to the next. New investors pay them to join their brand and set up their own shop locally based on the system. Very much like a McDonalds for real estate.
More recently we’ve seen some younger guys out of Silicon Valley trying to move into real estate with various websites enabling home sellers to get quick offers online. They often have big money investors behind them they resell the properties too.
How to Find Quick House Sale Companies
Sometimes it’s not too difficult to spot these home buyers locally and online.
You might find them:
- Via street signs in your neighborhood
- Being mentioned in the newspaper
- On websites like Craigslist
- The Yellow Pages
- By using Google search on your computer or phone
- By asking Alexa, Google Home, Siri
- At AreaCodeHomeBuyers.com
Just keep in mind that not all we buy houses companies will offer their service in all cities, price ranges, or for all property types. Sometimes you have to find the right fit. Still, it is always smart to get a couple offers from trusted companies and buyers to make sure you are getting a fair deal.
The Pros & Cons of Selling a Home to a We Buy Houses Company
There can be great advantages of selling a property to these buyers. Other times it isn’t the perfect fit. It really depends on the property, your situation, and finding the right buyer.
- Fewer eyeballs to bid on your home
- If you are not in a hurry, your house is in brand new condition, and just want to sell your house for top dollar you might find another solution fits better
- You can avoid expensive Realtor fees
- They just want to buy your home, not list it on the MLS like an agent
- They will typically buy your home in any condition, as-is
- These are normally cash buyers, who can give you all your money in less than 2 weeks
- No worries about a novice buyer’s financing falling through, or getting cold feet
- Limited, or no inspections
We Buy Houses Reviews
Are these home buying companies for real? Or is it all a scam? Sometimes things sound too good to be true.
While it is always important to be alert to real estate fraud schemes and potential mortgage scams, there doesn’t appear to be a big issue here.
From checking out reviews on Google, Yelp, Yahoo, etc., the two biggest issues are finding the right fit, and making sure you are doing businesses with a reputable company or person. For example; a quick house sale company may only do business in Chicago, Phoenix, or Spokane. Or they may only want to buy houses below or above a certain price point. The more information you provide upfront, the more time you’ll save.
Find the reputable and trustworthy we buy houses companies by asking for references from others. Or they may be able to show you a proven track record of successful transactions you can actually verify in local county public records.
Don’t be afraid to walk away if they don’t do what they say. Leave honest reviews so that others know whether they should use the same company or not.
If you want to sell your home swiftly, and without dealing with fixing it up, doing open houses, or paying out big commissions to Realtors, then a direct home buying company can be a great match. Normally you can get a quick cash offer from them in a matter of hours or a couple of days. Be sure they have the relevant information to make an informed offer, and check their reviews before signing the sales contract.
Whether you just need to sell to relocate for work or be near family, are in a cash crunch or foreclosure situation, have inherited a property, or just want to see how much you can get in cash for your house right now by contacting us today:
When you’re trying to get out of your home fast, local home buyers may be your best option. The traditional method- trying to sell through an agent – isn’t fast.
To explain why, let’s dig into what I mean by “local home buyer.”
Who are Local Home Buyers?
In simple terms, a local home buyer is a real estate investor. Sometimes it’s a person. Other times it’s a company.
Just like it sounds, these investors are local to your area. They know the neighborhoods and they can accurately estimate the value of your home.
They know the neighborhoods and they can accurately estimate the value of your home.
If the deal makes sense, these investors will gladly buy your home! The condition of the house doesn’t matter. Fixer-upper? We’ll buy it. In great shape? Again, we’ll buy it.
Why Sell to a Local Home Buyer?
To help you figure out if it makes sense to work with a local investor, here are the pros and cons to consider.
Pros of Selling to a Local Home Buyer
Avoid the Real Estate Agent Fees – These fees usually cost 3% of the selling price of the home. That may not sound like much, but it comes out to $9,000 on a $300,000 home. That hurts.
But that’s not all. The buyer’s agent also wants a piece of the pie – another 3%. When you factor that in, you’re looking at $18,000 just going to the agents. When you sell to a local buyer, that isn’t an issue. No agents, no heft commissions.
Sell Your Home Fast – Some people need to escape from their mortgage. It’s crushing them. That’s when working with a professional home buyer is useful. They can often have your funds delivered to you within seven days of the agreement!
Usually when someone buys a home, they need to get the mortgage approved by a bank. Typically this takes 30 days, even if the person was pre-qualified. Having to wait 30 days to get out of a soul-sucking mortgage stinks.
In this industry, there is something called carrying costs. These are the costs associated with owning and maintaining the home. To make it simple, let’s say this is $1,200 a month. If you work with an agent that takes five months to sell your home, you paid $6,000 in carrying costs.
You don’t have to worry about that when selling to a local professional home buyer. Because we operate so fast, these costs will be minimal.
Closing Costs – The seller usually has more closing costs than just the agent fees. Prorated taxes and homeowner association fees, for example.
Fortunately, an investor will often pay these costs for you.
Easy – Do you remember how long you had to spend at the attorney’s office when you bought the home? For most people, it’s at least an hour. Many times it stretches out to several hours – it all depends on how well the paperwork was set up.
Investors know time is money. They’ll do everything they can to make the process quick and easy. Sometimes the only reason for you to show up is to get your check!
Cons to Selling to a Local Investor
Lower Selling Price – Local home buyers are in the business of making money. They may buy the property to rent out or flip. Either way, they try to get the best deal possible.
As the seller, this means you might need to sell the home for a discount. It’s not always the case, but being able to close quickly or deal with a sticky situation might come at a slight premium.
Finding One Can Take Time – You can find companies that buy houses through some tips further down in this post, but it’s not easy. Even if you do find a few, they may not necessarily be interested in your home at this time.
That’s why we created Area Code Home Buyers. We make it easy for you to connect with local home buyers. Our network is quickly growing, making it easier every day to find a buyer for your home.
If you work with an agent, you may (or may not) sell the home a little faster. Some agents take months to sell their clients’ homes.
Click Here to Find Your Local Buyer
You Do All of the Work Yourself – There is a nice element of working with real estate agents. It feels great to have someone as your advocate when you enter a negotiation. They also help you market the home, getting more eyeballs and (hopefully) a better offer.
When you sell your home to a local home buyer, you won’t have an agent helping you out.
Who Should Sell to a Local Home Buyer?
Based on the pros and cons above, this question points to a single type of seller. If you are trying to sell your home as quickly and hassle-free as possible, a local home buyer is for you. Just realize your sale price will be a bit lower.
How to Find a Local Home Buyer
There are a few ways to find a local investor to purchase your home. Here are a few options.
- Contact a Network of Local Buyers. Just like it sounds, this is a group of people who invest in your area. The easiest way to do that is through our site. We have investors in many area codes right now.
- Join a Local Real Estate Investor Group. Each of these groups is different, so it’s difficult to tell you exactly what to expect. In general, these are groups of real estate investors that learn from each other.
- Ask Around. Tell everyone around you that you’re trying to sell your home to a local investor. Friends, family, coworkers, neighbors, etc. Be clear that you don’t want to sell your home to another family, as that process typically takes a long time (up to 30 days.)
Ready to Sell Your Home Fast?
Area Code Home Buyers has helped over 273 home sellers across the United States in the last year. If you’re serious about selling your house, reach out at 866-263-9960 or fill out the form below.
Should you sell to a cash home buyer? What are the advantages? Where can you find them?
If you are considering selling your house, a cash home buyer might sound like an appealing option. The big questions most property owners have are how much they can really expect to get from a cash buyer versus others? If the math might work out in your favor, what are the pros and cons of the different ways to connect with them?
What is a Cash Home Buyer?
There are three main types of house buyers out there in the market today:
- Buyers needing a bank mortgage loan for financing
- Buyers seeking seller financing opportunities
- Buyers who can and are willing to pay all cash for properties
Despite some of the hype and marketing out there, cash paying buyers who would actually want to live in your property are very few. Consider that less than 90% of the population has $5,000 in savings.
That means you’d be hoping to land the top 10% of affluent people to purchase your home. In most cases these wealthy buyers also prefer to finance their purchases because they are looking at more expensive homes, are seeking tax advantages and asset protection benefits of having a loan on their home.
What is more common to find is cash buyers who are real estate investors. They are willing to pay all cash for a swift closing and to avoid finance costs. This group is typically looking for properties which they can fix up and rent out to tenants, or can renovate and update to resell later on.
Those that really have the money typically organize themselves as businesses. They may even be funds or partnerships which have the combined capital of a number of private investors. So, for the purpose of this report we are focusing on finding a cash home buyer who is a company that buys houses.
How to Find a Cash Home Buyer for Your Property
There are a variety of ways to search for cash buyers for your house. Let’s take a look at some of the pros and cons of each.
You can always just hit up Google, Siri, or Alexa to search for cash home buyers.
You can simply try to Google “we buy houses companies in (your city.)” or “sell my house to an investor in (my city).” It’s fast and easy. It can save a lot of time and money versus trying to do a bunch of DIY marketing to attract buyers to you.
Recently there has been a big explosion of people trying to get into this space to buy properties. Some are good. Though there can also be a lot of work to do to separate the newbies and opportunists from the serious and those that really have the cash to buy.
Craigslist has taken over as the most popular classified ad platform. You can post your property for sale there too.
Listing your property on Craigslist.com is pretty fast and easy. It is even free in some cities. This allows buyers to find you, instead of you having to look for them.
It can be harder to be found on Craigslist than you think. Many scammers and Realtors use it, and can bury your house listing under hundreds of others within minutes or hours. Even if that doesn’t happen, you might find you just get bombarded by low ball offers from those looking for absolute steals, or have to try and filter out all the scammers and criminals. Or you may just get dozens of calls from agents who want to list your house for sale, not buy it.
Ask a Real Estate Agent
You don’t necessarily have to list your home with a Realtor to get them to connect you with a cash buyer. They may know someone with the money who has already been looking for a property like yours.
A great agent may have an established network of ready buyers who can pay cash and close fast. You can still expect to have to pay their commission, but this can speed things up, without being locked into a contract.
Unfortunately, many agents are not as successful as they make themselves out to be. They may not have those connections. Or some will say they do, and try to get you to sign their contract and lock you in, only to leave you stuck in a long listing arrangement. Some will just harass you and try to scare you into listing with them, instead of listening to you and your concerns, or what is in your best interests.
How Much Will a Cash Buyer Pay for My House?
How much a buy of any type will offer and pay for your house depends on a variety of factors.
Condition of the Home
Many regular home buyers who are looking for somewhere to live, or who are new to investing in real estate may make a lot of demands when it comes to condition and repairs. Or they may just be scared off, because they aren’t sure how big the job is, how much it will cost, or they don’t have the cash to do it.
If they do make an offer they are likely to include clauses which allow them to back out after inspections, or require you to pay for, and possible make the repairs before the closing. That can be risky as a seller as they may not close, even if you have the money to do it.
The best cash buyers will be willing to purchase you home “as-is.” It doesn’t matter if your home could just use a few touch ups, needs updating, or has serious water, wind, or fire damage… they will buy it. However, they will have to price these factors into their offers, as these are items they will have to pay to fix out of their own pocket after they buy it.
How appealing is the neighborhood right now? Are there a number of other properties up for sale? Have they been taking a while to sell? How are they priced compared to yours? Do neighboring homes and neighbors look appealing and friendly, or are they detracting from your home’s value and rental potential?
Macro Market Factors
The economy and housing market in general definitely play a role in how much people should be willing to pay for your home. Have interest rates gone up, or are expected to go up? This could make the home far more expensive in real terms, even if the price isn’t any higher than a few years ago. It could make it a lot harder to rent or sell in the future. What direction is the market headed in? If it has been going up, it could be about to head down soon. A buyer may have to factor in that they’ll be taking a 10% to 20% drop in the value in the months ahead. The same goes for rents.
Net Proceeds to You
If you list with an agent, they may promise you a higher price that they can never get you. You’d also have to pay at least one or two agents a commission. That can mean a 6% loss right off the top, and you may have to pay taxes on that money too.
You won’t have to pay those commissions if you go direct with a cash buyer. This also means being able to sell a lot faster, and avoiding more holding costs, and the risks that can come with waiting. Expect there to be some balance in this priced into the offer.
Ultimately the best way to find out how much a cash buyer will pay for your home is to reach out and contact one that is local. It doesn’t cost you anything to ask, and you might be really pleased with the number.
The Benefits of Selling a House to an All Cash Buyer
Aside from just getting all cash right away, there are an array of important and very valuable benefits of selling directly to an all cash buyer.
A traditional real estate closing through a real estate agent, with a financed buyer can take a long time. It can sometimes take months to coordinate appraisals, title, insurances, and loans. That’s after you sign a contract. A cash buyer can typically close in a matter of days. Though the best will also work with you on a closing date and time that works for you, if you need more time to move.
Going to contract with a buyer relying on financing can be very risky. Especially now. There can be a lot of extra demands on you as a seller. Lenders can be very fickle and you never know when the deal will all fall apart. The borrower could lose a job, change their mind, the appraisal may come in short, lenders may demand repairs to be made in advance, or they may just run out of money before the transaction is funded. Unfortunately, this often all happens at the very last minute. Then you may be left starting all over from scratch.
Or if your home is vandalized, a storm hits you, a neighbor sells cheap, or the market changes during the long process, the deal can be cancelled, and you’ll have to try to sell it again, for less.
All of the above, including the marketing time of taking the DIY for sale by owner approach and doing your own marketing, or waiting on a real estate agent can mean months of stress, uncertainty, and sleepless nights. Selling should be a positive thing, not a stressful one. You don’t need to put your health and sanity, or relationships at risk, like that if you choose a cash buyer.
Higher Net Proceeds
While a cash buyer may offer a little less than a Realtor is willing to list at, you can still end up pocketing more money, and that’s what’s really important. This is due to fewer costs, as well as avoiding the risks of waiting, and the expense of holding costs. Every day you wait for a closing means property taxes, utilities, and often interest, association fees, and even legal fees too. That all comes out of your net cash. Close faster with a cash buyer and you’ll keep more of the sales price.
There are actually many tangible advantages of selling direct to a cash buyer. There are a number of ways to find or attract them too. Each has its pros and cons. Equipped with this information you should be able to make an educated decision on what’s best for you.
Ready for an offer?
Get a fast cash offer from one of our pre-qualified cash buyers in your area. Just fill out this form:
There are few things as complicated as selling a house. It’s not just about selling the house for the right price; from pre and after-sale expenses to finding the right buyer, there are a hundred things that homeowners have to worry about. Here are three tips to ensure a stress-free sale:
Do your homework:
Without a plan to sell your house, you may end up choosing the wrong real estate agent, or worse, sell the house for the wrong price. How much did houses sell for in your neighbourhood? What’s the lowest selling price you are willing to accept? Go through home-related documents and the mortgage to make sure you have covered everything. How much can you afford to pay for repairs? Preparing for these things in advance helps you overcome potential problems. Why do you want to sell the house? Are you planning to downsize? Are you planning to relocate to another city? Have you been issued a foreclosure notice and would like to sell it as quickly as possible?
Brokers may give little notice before asking if they can bring prospective buyers to show your house. This can be stressful because you’ll have to keep the house orderly and show ready at all times. Before you decide to sell the house, organize your belongings by de-cluttering things and arranging for a deep-clean.
Contact us if you’d like a truly stress-free sale. We are real estate investors; we buy houses for cash. You don’t have to pay us a commission or worry about carry out repairs. We buy houses As Is, you do not have to spend money prepping the house for sale or worry about after-sale repairs. Unlike a conventional sale, we can close and settle in less than 14 days.
Looking to sell your house fast? Contact us!
Selling a house can be stressful! Apparently, it’s not just us – an independent report by estatesdirect.com has found that more than a quarter of the people they surveyed have had a bad experience trying to sell their house!
Some people thought the realtors to be dragging their feet, and some were overwhelmed by the fact that the house had to be kept spotlessly clean at all times during the selling process.
The situation is especially difficult during a hurried sale. You could be facing a foreclosure or looking to move to another city and cannot afford to waste time or money on repairs and renovations. This is where we come in. If you’re wondering, how to sell your house fast, here’s why we think you should call us:
We can close in less than two weeks:
We’re direct home buyers, you do not have to deal with real estate agents or fret about listing your house on the MLS. No need to post pictures or videos of the house. You can call us over the phone or fill in the online contact form – we’ll come over to your place for an initial meeting to know more about your situation. If you agree to our offer price, we’ll close on a date you choose!
We pay cash:
We buy houses for cash. We’re home investors, we buy rundown properties, make the necessary repairs, and then resell or rent them. Unlike others, our team of homebuyers do not have to worry about the red tape surrounding loan approvals, and do not make you wait until the escrow closes.
We promise a stress-free sale:
You do not have to worry about cleaning the house or getting rid of the junk. We’ll do it for you – we buy houses As Is. You can leave the house with only the things you like and leave the rest. Don’t worry about after-sale cleaning as well.
Planning to sell your house fast? Call us 866-263-9960 or fill out the form below!
Is it possible to sell a house in foreclosure? If so, what options are there? How does it work? What are the best ways to do it? We cover every question you may have related to selling a home while in foreclosure.
Being in foreclosure can be an incredibly stressful situation. It happens. It has happened to millions of American households. What is more important, is what you do once you find yourself in foreclosure. There is hope. Yet, there are also many dangerous pitfalls. So, if you are in foreclosure, or fear you may end up there, what can you do? What should you do?
Foreclosure is a legal process by which a creditor attempts to collect on a debt, or recover what they can from a pending loss.
The most common form of foreclosure we hear about is house foreclosures. Specifically, when a borrower fails to make their loan payments. These are what reportedly made up the bulk of the foreclosure crisis of 2008. Millions of homes were lost in foreclosure during this period. Though experts point out there is always some level of default rate.
While the most well-known form of foreclosure is failing to make mortgage payments on time. There are actually a wide variety of ways that homeowners can find themselves in foreclosure, such as delinquent property taxes, condemned properties, condemned properties, Liens, and fraud. For this article we’ll focus on the most common foreclosure type: mortgage defaults.
What Happens if My House is in Foreclosure?
Foreclosure can be scary. What’s worse is not understanding the process. Or even ignoring the warnings and help to solve it early.
Foreclosures work differently in different states. There can also be slight variances depending on the number of foreclosures happening, why you are being foreclosed on, regulatory changes, and the position that lenders are in.
In most cases you will receive several warnings. If you are late on paying your mortgage payment, you can bet your lender and loan servicer will make multiple attempts to reach out and let you know. They’ll send you mail, email, and call you on the phone. They may even stalk you by text message, voicemail, send out inspectors, and hunt you on Facebook.
If you have a residential home mortgage on a house you live in, you will have 30 days from your payment due date before things really begin to snowball. After that, your credit will start to be impacted, and your options will begin shrinking. After this you may get letters from attorneys representing the lender. With each letter you will have been accruing back interest, late fees, and attorney’s fees on top of that. You will typically have 90 days before a Notice of Default (NOD) is filed with the courts, and the foreclosure process really kicks in.
What happens next can generally be broken down by the state in which you live. There are ‘judicial states’ and ‘non-judicial’ states.
Judicial vs. Non-Judicial Foreclosures
According to the Mortgage Bankers Association judicial foreclosure states include:
- New Jersey
- New Mexico
- New York
- North Dakota
- South Carolina
The foreclosure process in judicial states
The judicial foreclosure process is typically notoriously longer than in non-judicial states. The exact time it takes can vary widely, depending on how desirable the property is for the lender to take, the financial condition of the lender, current regulations, and court backlogs.
Once a borrower is late on their mortgage payment, they will begin getting notices from loan servicers. Once the loan becomes 30 days late, it will be reported to the credit bureaus. Expect attorney letters to start coming in. Fees and back interest begin to mount up.
This begins to snowball through the 90-day market. Since the crisis of 2008, and the new pressure it put on lenders, the actual court case to pursue foreclosure may not be filed until this 90 -day point. Sometimes it may be longer. Yet, it is a huge mistake to try and guess. Expect it to happen swiftly.
The court will approve the filing, and a date will be set for the foreclosure sale. The property goes to auction. If no one bids higher than the lender, they will take possession of it, and be issued the title.
If you haven’t already moved out, the sheriff will have the job of evicting you, and removing your belongings from the property. This is not a pleasant experience.
These are found in:
- New Hampshire
- North Carolina
- Rhode Island
- South Dakota
- West Virginia
The non-judicial foreclosure process
Non-judicial foreclosures are much faster. They don’t have to wait to go through the court process. Once borrowers receive a notice of default (NOD), and the notice of trustee sale, the property goes right to auction. If you can’t catch up before the auction, the bank may get possession of the property, or another third party may bid and win it, and the deed.
Deficiency Judgments & Tax Consequences
What many homeowners don’t realize is that in some states a deficiency judgement is allowed. When a property is sold at auction, but the price doesn’t cover all the interest, balance, fees, and costs owed, then the lender can win a judgement for the outstanding balance. That means you can lose your home, and still owe the money for the mortgage, etc.
Depending on how aggressive they are allowed to pursue you, they may be able to seize personal property or garnish your wages to collect. If they forgive the outstanding balance, then the IRS can consider this extra income. This can trigger more taxes or even a higher income tax rate. The IRS can then garnish wages, put a tax lien on you, block your passport, and seize cars and other belongings.
These are some of the things which make it so vital to get help and find a solution when in foreclosure. Foreclosure in itself is not the worst thing that can happen, it is all the things that comes along with it.
How Does a Foreclosure Affect my Credit?
Sadly, many homeowners have let themselves get down when their credit starts to take hits in the process. Late mortgage payments can be very damaging to credit and credit scores. Too many people don’t reach out for the help they need. A few 30 day late marks, or even a 90 day late mark aren’t great, but they will fall off of your credit report in a couple years and will no longer be a factor.
Having a foreclosure on your credit is a lot different. It will be on there for the best part of a decade. It can take years to even get a shot at new credit, or prepaid credit cards to rebuild credit. That means no emergency credit for medical emergencies, home appliances, cars. It can also be a factor in trying to rent an apartment, insurance, and even trying to get a job or promotion.
What Are My Options When in Foreclosure?
Reinstate Your Loan
If you can come up with the money fast enough, and can cover all the extra fees, then you can pay it up, and buy your way out of foreclosure.
You may also try to work with your lender or loan servicer. It certain hardship scenarios they may grant a temporary forbearance, allowing you to skip a few payments. In the midst of the crisis, some began offering loan modifications or catch up plans. Today lenders are far less likely to grant these, especially on new foreclosures and delinquencies.
Lose the Home
This really shouldn’t be an option, but it happens. Some are paralyzed by indecision, or drag their feet on getting help. Then their homes to auction and they are evicted. This doesn’t have to happen! Get help before it’s too late!
Bankruptcy is often posed as an option for stalling foreclosure. It can work, in some cases. However, it isn’t free, and you’ll need to be up to date on your income taxes. Unfortunately, many aren’t aware how heavy the costs of bankruptcy can really be. It’s just like going through a foreclosure as far as credit is concerned, and probably worse.
Sell Your Home
If you can’t catch up, and your lender isn’t working fast enough to help, then the best option is to sell the house. Many would prefer not to, but it is typically the most attractive scenario. You can get out from under the burden, get a fresh start with a clean slate, dodge all the negatives, and enjoy more hope of a better future.
How to Sell a House in Foreclosure
You can sell a house in foreclosure.
There are a couple of options, or frequently tried methods, including:
- Listing with a real estate agent
- Marketing it yourself as a for as a For Sale By Owner (FSBO)
- Selling it direct to a company that buys houses (investor)
In the unique situation of being in foreclosure the dynamics of the situation are quite different to a regular home sale. That can make the FSBO and Realtor listing route more complicated and challenging. Realtors can be helpful in a normal home sale situation. Unfortunately, in a foreclosure scenario, their high commissions, 30-day time frame for most buyer loans, and being locked into a long-term listing agreement can actually make it harder to sell.
If you try to just market it yourself, it will take marketing money, running ads, dealing with showings, and making repairs. All with just the hope that it will pay off in time. Most can’t afford that. This also doesn’t take into account the complexities of trying to work with your lender to facilitate the sale during the foreclosure process.
What are the Steps in Selling a House in Foreclosure?
- Find out how much you own the bank
- Get your bank notices and statements together
- Contact a local cash buyer
- Receive a free, no obligation offer on your home
- Accept the offer, and sign the sales contract
- Select your moving date
- Get help moving
What to Look for in a Buyer
If you are in foreclosure, or think you may soon fall into foreclosure, you cannot afford to gamble on a buyer who needs conventional mortgage financing which make not come through.
- A reputable buyer
- Someone who is local and understands your local market
- A buyer who is happy to answer all of your questions and explain the process
- Experience in buying homes in foreclosure
- An as-is offer, with no requirements to make repairs
- Someone who treats you with respect throughout the process
The Advantages of Selling Direct to an Investor
Selling a house in foreclosure direct to an investor has many benefits.
This can include:
- No waiting time
- Can close in 1-2 weeks
- No need to make repairs
- Cash buyers won’t be held up by financing
- An experienced partner who knows how to sail through the process with the bank
There’s no just waiting and hoping, or having to gamble the last of your savings or credit on a buyer eventually coming through, or investing in fixing up your place. Qualified cash paying investors can close very quickly, will typically buy your home just as-is, and can work with your bank to make the sale happen. It’s the easiest, fastest, and surest way to avoid foreclosure, get cash, and get a fresh start.
In fact, selling to an investor is quite easy. Read more about how to sell a house fast in just 5 easy steps.
Foreclosure is never fun. It can be a very scary and stressful time. Unfortunately, it can, and invariably gets worse, the longer owners take to take action and secure a buyer for their properties. Every day means less time, more penalties, fewer options, and less cash back in your pocket. Exactly how long it will take for the bank to sell your home and evict you can vary widely.
In the pit of the crisis it could take more than a year. Today it can be a matter of a couple of months. There is no time to waste. Fortunately, there are cash buyers who can help.
If you are in foreclosure, are about to fall behind on payments, or are just struggling with other bills related to your home, contact us today. We have a nationwide directory of cash buyers and investors. We can put you directly in touch with those who can be of the best assistance to you, and will offer you the most money for your home, just as it is.
There is a brighter future just over the horizon. Just one call could make all the difference in being able to avoid foreclosure, and quickly bounce forward to better things. You deserve that chance. Help is waiting, if you take the easy step of reaching out, and taking advantage of it. Don’t become another victim of the system.
We have local home buyers all over the country who are ready to help with. Just search here for your buyer or fill out the contact form below and we’ll connect you.
Frequently Asked Questions
Q. Can I sell a house in foreclosure?
A. Yes. If you act quickly, and find a qualified buyer you can still sell.
Q. How long does it take to sell a house in foreclosure?
A. Selling to a buyer can take as little as a few days to two weeks.
Q. Can I still sell my house if it has no equity?
A. Yes. Even if you are upside down, underwater, and owe more on your mortgage than the home is worth, you can sell.
Q. Can you do a short sale while in foreclosure?
A. Regulations have dictated that lenders choose foreclosure or a short sale or loan modification. However, if you are already in foreclosure, a new buyer may be able to work directly with you bank and achieve a short sale.
Q. What if I already have an auction date?
A. Even if your property is already scheduled to go to foreclosure auction, you can sell, but time is of the essence. You must get help immediately.
Q. What is my home needs repairs?
A. With the right buyer, you will not need to make repairs or even clean your home. Some will buy it just as is.
Q. What if I have liens against my home?
A. Experienced buyer can help buy your home, even if you have HOA liens, property tax liens, and mechanics’ liens against your home or code violations.
Q. What can I do to ensure a faster sale?
A. The more information you can provide your seller and the closing agent, the faster they can close. Being able to provide your last mortgage statement, prior title policy, survey, and an old appraisal may all help.